Theoretical Nexus of Knowledge Management and Tourism Business Enterprise Competitiveness: An Integrated Overview

Most recently, there has been a growing interest in understanding the correlation concerning knowledge management and competitiveness more so in the area of tourism. Hence, this paper looks to provide a synthesis on theoretical nexus of knowledge management and tourism business enterprise competitiveness by giving an integrated overview of four micro economic related theories that influence competitiveness and knowledge management. These theories were examined to exhibit the extent of their applicability to tourism businesses as a way to alleviate challenges posed by susceptibility, complexity, ambiguity, uncertainty, and volatility brought about by market liberalization and globalization. Moreover, theories are, considered a set of systematic hunches, which have multiple parts, which play a role in the overall idea of what exactly a theory is proposing. During the review of literature various theories assert to explain knowledge management and competitiveness individually, but on some occasions in relation either to organizational learning or organizational (quality) culture. Thus, the need to supply an integrated overview of the theoretical nexus between these concepts by exploring the theoretical frameworks and related facets. Of the micro-economic theories: the institutional theory, the knowledge-based theory, the resource-based theory, and the (dynamic) capabilities theory were used to guide and try to explain the relationship of aforementioned facets. The knowledge-based theory posits that an organization’s competitive gain stems from the distinctive knowledge assets along with its ability to effectively utilize and share these assets within the organization. The resource-based theory, conversely, emphasizes the role of physical and intangible resources in determining an organization’s competitiveness. The (dynamic) capabilities theory underscores the importance of an enterprise’s ability to continuously learn, adapt, as well as innovate to sustain a competitiveness. Finally, institutional theory highlights the role of external factors, such as business standards, industrial policies and procedures such as quality approaches, in shaping an organization’s competitiveness. Overall, with the comprehensive perception of the given theories the paper attempts to feature the correlation between knowledge management and competitiveness within the tourism industry. Highlighting ways in which these theories can be integrated to supply a more holistic understan