Knowledge management involves transforming knowledge resources within organizations by identifying relevant information and then disseminating it so that learning can take place. Knowledge management strategy aims to capture an organization’s collective expertise and distribute it to where it can be best used. It ensures that knowledge is shared by linking people with people and by linking them to information so that they learn from documented experiences. This is in accordance with the resource-based view of the firm, which, as argued by Grant (1991), suggests that the source of
competitive advantage lies within the firm (ie in its people and their knowledge), not in how it positions itself in the market. A successful company is a knowledge-creating company.