Value innovation in organisations in light of the Knowledge Economy “State of the Art”

Abstract

The knowledge economy relies on intellectual capital as a driver of economic growth, which can be considered a framework for value creation. This study aims to review literature that discusses the subject matter of the study and contribute scientifically to enriching current scientific research. The study adopts a descriptive approach through a systematic review of the relevant literature in both Arabic and English. A significant finding of the study is that knowledge and value innovation are strongly correlated, whether as a means of measuring the feasibility of investing resources in innovation, or as an input into the process of innovation, or as a measure of its effectiveness. Achieving this goal requires the extraction of knowledge from within and outside of an organization. The value innovation usually results in competitive advantage because it enhances the product offering, enhances the associated service, or enhances the process of delivering the product to customers. It is this inadvertent value innovation that generates a competitive advantage. Collaboration and alliances with partners and stakeholders for transferring knowledge reduce the costs of experimenting with scenarios to achieve value innovation. Additionally, investing in technology in the form of digital documentation and facilitating communication will facilitate the sharing of knowledge. As a result of value innovation, customers can receive value that is difficult to duplicate at minimal costs and for which they are willing to pay.