It is argued in this paper that knowledge creation is the basis of sustainable competitive advantage in the new economy. However, literature review reveals that the distinction between knowledge creation and knowledge management is not clear and that there is uncertainty about what aspects of knowledge are the sources of competitive advantage. Given this, structural, cultural and strategic factors that have been thought to impact knowledge creation, knowledge management, or both are examined in this paper. It is argued that decentralization, semi permeable structures, high collectivism, low power distance, entrepreneurial strategy and care/trust are among the key factors associated with the creation of knowledge.
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