Montenegrin Journal of Economics

Strategic Knowledge In The Function Of Development Dynamic Capabilities Of Firms

Radislav Jovović and Veselin Drašković

2007, vol. 3, no. 5, p. 67-75

Strategic knowledge is considered as an important determination of an organization's value creation potential in dynamic, knowledge-based markets. Hence, this article presents an approach haw to develop model which is base on strategic knowledge market learning and knowledge adjustment. This approach is aimed to respond effectively to changes in the external environment. Current process of globalization is associated with creating the new fields of economy which are covered by term "knowledge economy" (economy based on knowledge, or economy of knowledge). Information and knowledge are in the theory and the practice more and more consider as immediately productive force and long time have been viewed as strategic factor of production. Through information we acquire the new knowledge about environment. Information minimizes risk and uncertainty, or, as K. Errow said "information is term which is direct opposites to the term uncertainty". Knowledge, information, skills, and innovation, revolutionary moved the borders of social and economic growth and development. They become the key wealth and a production resources which dominantly influence movements of so called "global order" to postindustrial era. The new business environment is characterized by interlink technologies of telecommunications, cable, satellite, computer equipment, software, and complex operating protocols, and the global information infrastructure. It is easy to minimise volume of changes and present them as installation of computers, computer net ware, and cables. But, even so narrow view of changes shows that in the new economy increase speed - in commerce, travel, communications, and innovation. It creates uncertainty, complexity and turbulence. At the level of companies, need for new knowledge appears as means which will provide effective response to environment changes. Questions without answers are numerous. We don't have ambitions to cover all of them, because of limitation of space and ourselves, but through generalisation we will try to give mythological approach acquiring the new knowledge which helps increasing of dynamic capabilities of firms.

suggested citation:

Radislav Jovović and Veselin Drašković. "Strategic Knowledge In The Function Of Development Dynamic Capabilities Of Firms." Montenegrin Journal of Economics. vol. 3, no. 5, 2007, p. 67-75

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