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Purpose

Turbulence and complexity in the business environment is growing along with the need for external information in creating innovation, as innovation is seen as the primary source of sustainable competitive advantages in the knowledge economy. Consequently, the underlying information processes were external information are gathered and put into use, are crucial for companies in their development of innovation, and ultimately their capacity to limit imitation and create sustainable competitive advantages.

Design/methodology/approach

The research question in this paper is, how can systemic knowledge processes create innovation and promote competitive advantages? Through a conceptual model it is argued that a prerequisite for the acquisition, development, integration and application of knowledge, is the existence of systemic knowledge processes, percolation processes and networking.

Findings

It is through these processes that organizations can develop innovations, which ultimately will lead to sustainable competitive advantages.

Originality/value

Provides an insight into, and an understanding of knowledge processes, innovation and sustainable competitive advantages in the business environment.

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