Microfoundations of Knowledge Dynamics Within the Firm

A distinctive feature of human activity is the creation of knowledge, and the firm is one of the many places in which knowledge is created. This paper deals with some aspects of creating knowledge in the firm: its dynamics, underlying cognitive models, dependence on context, role of human resources in the firm and the effects of their renewal. Introducing the cognitive dimension of the individual in a theory of the firm is compelling in order to understand the new role of intangibles in actual firms. It also offers a base for aligning the resource-based view with the knowledge-based view of the firm. Understanding the ways in which individual, and, much more importantly, collective knowledge evolves offers the opportunity to give human beings the central role they deserve. The firm may thus be seen as a knowledge-creating entity and human resources as the pivot of the organization.