Harnessing knowledge for innovation: an integrated management framework

Abstract

Abstract Purpose – The purpose of this article is to examine, develop and establish understanding of the management of knowledge innovation (KI). Design/methodology/approach – This article first describes the emergence of knowledge management (KM) as the next likely source of competitive advantage. It then explains why innovation management (IM) should not be viewed as mutually independent from KM, but instead should involve concepts on how to harness KM practices for executing IM processes. Next, it elaborates the definition of KI and describes the economic transition from "information revolution" to "knowledge revolution" – wherein various forms of knowledge‐based assets may be absorbed, assimilated, shared and utilised for innovation. It then turns to the role of knowledge creation and the value of knowledge capital in support of the significance of knowledge to innovation. Siemens, a highly successful company that strongly integrates KM and IM, is highlighted as an exemplar for discussion. Findings – The article proposes an integrated management framework for managing KI in relation to perspectives on knowledge‐centred principles, knowledge‐sharing infrastructures and knowledge‐based initiatives. Finally, it concludes with the future challenges for organisations to exploit better the full benefits of KI. Originality/value – The management issues raised in this article are expected to be of interest to industry planners, business executives and academic researchers.