Abstract
This article explores the competitive advantage of businesses. Current understanding of competitive advantage arises from the strategic management paradigm. However, the early theory that underpins this comes from optimising economic theory, the inadequacy of which led to the resource-based view. The next development came from knowledge management, which sees knowledge as a valuable strategic resource recognizing the need to look more inside the organization qualitatively. However, a new paradigm has arisen that couples knowledge processes with cybernetics. This recognizes that achieving competitive advantage requires that an organization's pathologies must be recognized and addressed.
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