Construction of Knowledge Creation: A Conceptual Framework

In knowledge-based economy, continuous innovation is the key to sustainable competitive advantage. Innovation can strengthen the sustainable growth and productivity of a country and increase national productivity as well in the global market through creation of new ideas and opportunities. Innovation is extremely dependent on the availability of knowledge, therefore the complexity created by the explosion of richness and reach of knowledge has to be identified and managed to ensure successful knowledge creation. The purpose of this paper is to construct a knowledge creation framework. A further study will be undertaken using this constructed framework for collecting and analysing data. The framework shows that knowledge creation is influenced by organizational knowledge and market knowledge. Organizational knowledge always becomes obsolete and it should be updated by market knowledge and new created knowledge via technological advancement in order to maintain its up-to-date information.