Information processing and knowledge management (KM) systems have seen a significant evolution over the past decade. As management research from a knowledge-base view (KBV) links the competitive advantage of an organization to individual tacit knowledge ,what impact has this rapid evolution in IT capabilities, and the resultant increase in organizational abilities to now codify and more effectively acquire, store and transfer knowledge, had on firms and their performance? These changes in management information systems (MIS) capabilities may also provide cause to reexamine some of our theories and accepted views of the bounds of organizational capabilities based upon knowledge. Specifically, if a firm’s KM systems are significantly augmented in terms of their capabilities for data acquisition, codification and combinative capabilities, what are the theoretical implications of the sustainability of competitive advantages and firm performance based upon such knowledge? These are the issues and implications explored in this chapter. In this chapter, we explore IT-enabled means of acquisition of data and information, and systems for conversion of information into actionable knowledge. This is conducted through exploration of the potential impacts of KM technology in combination with variations of IT systems infrastructure. We are specifically interested in exploring the potential implications for firm performance through mediating or moderating relationships of IT resources on firm knowledge flows. We discuss how IT systems may enable organizations to more effectively acquire, codify, aggregate and allocate competitive knowledge. Through this discussion, we review common competency-based perspectives of strategic management. From this theoretical basis, we develop propositions regarding whether IT-enabled knowledge capabilities should lead to increased performance or a corresponding decrease in the firm’s ability to sustain competitive advantage on that knowledge. To facilitate this, the chapter provides a brief review of research on related IT applications and platforms in the context of organizational KM processes, and then explores theoretical implications of IT-enabled KM on firm competitive advantage and performance.