Knowledge Management as a Strategy for Sustainable Competitive Advantage: Study of FMCG Industry in Pakistan

Abstract

The research intended to study the effect of knowledge management on attaining sustainable competitive advantage in FMCG sector of Pakistan. The study is an explanatory study and followed quantitative design. A closed-ended questionnaire was used as research instrument using 5-points Likert scale. Knowledge management was measured by means of the Knowledge Management Assessment Instrument (KMAI) built on the theoretical model of the Competing Value Framework (CVF) and Sustainable competitive advantage (SCA) was measured using VIRO framework. Sample of 380 respondents were taken for this study using purposive sampling. Analysis was carried out in AMOS. From this study of knowledge management towards sustainable competitive advantage all outcomes show that knowledge management with its five steps process; knowledge creation, knowledge Organization, Knowledge Storing, Knowledge Dissemination and Knowledge application has significant effect on attaining sustainable competitive advantage in FMCG sector of Pakistan. In this regard results of CFA and SEM were also found supportive. Organizations should allocate resources towards knowledge management as it is a key to enhance the performance of organization in the form of sustainable competitive advantage. Organizations’ systems must be planned in a way that inspires employees for efficient utilization of other resources, which means constant improvement of their knowledge and capabilities.