In an economy where the only certainty is uncertainty, the one sure source of competitive advantage is knowledge. When markets shift, technologies proliferate, competitors multiply, and products become obsolete almost overnight, successful companies are those that consistently create new knowledge, disseminate it widely throughout the organization, and quickly embody it in new technologies and products."

In an era where business scenario is characterized by intense volatility and severe upheavals, the organizations are facing threats to their survival. The business environment has become highly unpredictable, thus, leaving no room for relying on forecasts. In such an environment organizations have to be highly flexible, sprightly, responsive and adaptive. The need to evolve with the changing marketplace has made it vital for organizations to focus on continuous learning and innovation. The static and rigid structures are replaced by flexible and dynamic learning organizations. The organizations are streamlining and integrating their internal processes to foster a culture of continuous learning. These factors have lead to the burgeoning of a new era of knowledge economy.

Once considered a fad, `Knowledge Management' (KM) has evolved to take on a critical role in the business arena. Now, more and more organizations have realized the vitality of the concept of KM. They are rejuvenating their organization by stimulating a spirit of learning and innovation. The organizations are now evolving various systems and procedures for managing their intellectual resources effectively. An enquiry into the success of KM initiatives in the various firms across the world leads to a conclusion that sustainable competitive advantage comes from what the organization collectively knows and how efficiently it uses what it knows, besides readily acquiring and using new knowledge.