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Dynamic Knowledge Management: A dynamic capabilities approach to knowledge management

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  • Li, Bailu
  • Teece, David J.
  • Baskaran, Angathevar
  • Chandran, VGR

Abstract

This study introduces the concept of Dynamic Knowledge Management (DKM) by integrating Knowledge Management (KM) with the Dynamic Capabilities (DCs) framework to address strategic challenges in the digital economy. While traditional KM emphasizes efficiency and knowledge codification, it often lacks responsiveness to environmental turbulence. DKM reconfigures KM through the lens of DCs—sensing, seizing, and transforming—to keep knowledge processes aligned with evolving strategic objectives. We distinguish DKM from Ordinary KM (OKM) and develop a conceptual model showing how tighter KM—DCs integration enhances competitive advantage. Using a retrospective, longitudinal case study of Haier, we illustrate how KM can evolve from a support function into a strategic capability. Haier's transformation—from standardized knowledge routines to platform-based ecosystem orchestration—demonstrates how DKM enables continuous innovation and adaptation. This study contributes to both KM and DCs literature by identifying DKM as a new microfoundation that supports organizational agility. It also provides practical insights for managers seeking to align knowledge systems with the needs of strategy.

Suggested Citation

  • Li, Bailu & Teece, David J. & Baskaran, Angathevar & Chandran, VGR, 2025. "Dynamic Knowledge Management: A dynamic capabilities approach to knowledge management," Technovation, Elsevier, vol. 147(C).
    • Handle: RePEc:eee:techno:v:147:y:2025:i:c:s0166497225001488
    DOI: 10.1016/j.technovation.2025.103316
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