Knowledge development and utilization can be facilitated by human resource practices. While the competitive advantage depends upon the firm utilization of the codified knowledge and its ability to generate and create new
knowledge more efficiently. the process of managing knowledge creation, integration and utilization inside the enterprise is linked to Human Resource Management (HRM) as a main coordination mechanism of these actions. Furthermore, the human resource is considered as crucially important in creating sustainable competitive advantage of organizations and enterprises. Human resource practices and initiatives contribute to the firm‟s ability in utilizing their codified and existing knowledge to generate new knowledge , adding to the firm a new competitive advantage.