Toward a knowledge‐based theory of the firm

Bibliographic Data

ID23312901
AuthorsRobert M Grant (0000-0002-0851-7085, Georgetown University, corresponding author)
Year1996
Volume17
IssueS2
Pages109-122
Publication date1996-12-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueStrategic Management Journal (JOURNAL)
Journal identifiersISSN: 0143-2095 • E-ISSN: 1097-0266
PublisherWiley (PUBLISHER • GB)
DOI10.1002/smj.4250171110
OpenAlexW2160449301
LanguageEN
Citations received604
References cited37

Given assumptions about the characteristics of knowledge and the knowledge requirements of production, the firm is conceptualized as an institution for integrating knowledge. The primary contribution of the paper is in exploring the coordination mechanisms through which firms integrate the specialist knowledge of their members. In contrast to earlier literature, knowledge is viewed as residing within the individual, and the primary role of the organization is knowledge application rather than knowledge creation. The resulting theory has implications for the basis of organizational capability, the principles of organization design (in particular, the analysis of hierarchy and the distribution of decision‐making authority), and the determinants of the horizontal and vertical boundaries of the firm. More generally, the knowledge‐based approach sheds new light upon current organizational innovations and trends and has far‐reaching implications for management practice.

Institution · Business Strategy and Innovation · Innovation and Knowledge Management · Management and Organizational Studies