Strategic Knowledge
Strategic knowledge underlines the organization’s strategic
approach to situations of competitive nature and
that demands adaptive responses in response to unforeseen
events and circumstances.
On the interactive dimension of negative mode of organizational
learning, the dormant state of knowledge
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and simple managerial cognition, the organization faces
a doomed-to-failure state, which means that on these
dimensions, there is virtually no activity that leads to
knowledge creation, which eventually leads to a crumbling
state (Figure 6).The un-evolved strategic process
of management predisposes the organization to failure
in the event of serious challenge to its competitive advantage
and innovation in the face of entry of other serious
competitors. Moreover, the threat of substitute
products, the bargaining power of buyers and suppliers,
and the rivalry among competitors greatly diminish
the strategic advantage of the organization since it
lacks a clear strategy to move ahead in the competitivestrategic
arena.