Abstract:

One of the new trends in Knowledge Management (KM) is arising from its association with innovation. In today’s highly competitive business world, innovation is said to be the key factor that is able to drive organizations to create value and compete with global rivals. KM highly emphasizes on the deployment of knowledge to gain competitive advantage and innovation requires input of knowledge to create new products, services, processes, and methods. It is thus reasonable to say that knowledge management is expected to produce the source of knowledge that is integral to support innovation. In regard to this, it is important to understand and enhance the creation of knowledge in organizations so that organizations can gain value and outperform rivals through the adoption of knowledge management that support innovation. The objectives of this study are two-fold, namely 1.) to understand the importance of knowledge creation in organizations and 2.) to explore the ways to enhance knowledge creation in organizations. The methods used in this study would be a review of literature followed by synthesis of ideas extracted from literature. This study is expected to make a contribution to the corpus of knowledge management, especially in the area of knowledge creation as there is a lack of literature focusing solely on this area. It is also expected to be able to make a significance contribution in the sense that the key factors identified could serve as a foundation to be used for future empirical studies.