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Human Resource Management QUESTION #6459
Question 1

The concept of 'knowledge-embodied know-how' as the foundation of competitive advantage suggests that:

  • Explicit documented procedures are most valuable
  • Tacit knowledge in people is the key resource✔️
  • Technology systems create competitive edge
  • Financial capital determines success
Correct Answer Explanation

People-embodied know-how - the knowledge, skills, and abilities embedded in organizational members - forms the foundation of core competencies. This tacit knowledge in people, not just documented procedures or technology, distinguishes organizations from competitors.