Stocks Of Knowledge And Organizational Performance: Dynamic Relationship

Abstract

The relationship between the level of knowledge and organizational performance has been studied by the academic commun ity and is receiving growing attention from decision makers in organizations. However it is not the case of the feedback relationship between performance and the level of knowledge, although this relationship has a dynamic pattern of behavior on both variables. This research poses a conceptual approach that involves a causal model of this feedback relationship, theoretically founded on the resource based view and the behavioral theory of the firm. The methodology involves the design and use of a system dynamics simulation model based on a pharmaceutical comp any which relates stocks of knowledge, innovation capability, financial performance and investments on knowledge stocks.