According to the knowledge-based theory of the firm, the possession of knowledge-based resources, known as intellectual capital, is essential in dynamic business environments. These resources contribute to lower costs, foster innovation and creativity, improve efficiencies, and deliver customer benefits.
In dynamic business climates, according to the knowledge-based theory of the firm, possessing intellectual capital—knowledge-based resources—is vital for minimizing costs, fostering creativity and invention, boosting efficiency, and delivering customer benefits.