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Core competences, emanating from an organisation and that provide distinctive benefits to customers, are commonly viewed as the basis of competitive advantage. While these exist in many forms, the role of individual and organisational knowledge is increasingly important in the formation of knowledge‐based core competences. This paper explores the ideas of knowledge management, making reference to a number of sectors and companies, and specifically the airline industry, arguing that the culture, structure and infrastructure of an organisation are integral elements that facilitate and nurture learning. As a consequence, competences are built and developed within the “intelligent” organisation, which in turn, contribute to its competitive success.

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