From Agency to Advantage: Extending the Knowledge-Based View through HPWS and Innovation

Abstract

The Knowledge-Based View (KBV) has long emphasized knowledge as a critical strategic resource for achieving competitive advantage. However, it offers limited insight into the micro-level mechanisms through which knowledge is actively created and mobilized within organizations. Addressing this gap, the present study introduces agentic management as a key driver of knowledge dynamics, positioning employees as proactive agents who intentionally create, share, and apply knowledge. Building on this perspective, the paper develops a conceptual framework that links agentic management to competitive advantage through sequential knowledge processes, High-Performance Work Systems (HPWS), and innovation outcomes. Specifically, agentic management fosters employee proactivity and knowledge exchange, which are amplified by HPWS practices that enable participation, skill development, and performance alignment. These processes, in turn, enhance organizational innovation capability, ultimately leading to sustained competitive advantage. By integrating insights from strategic management and human resource management, this study extends the KBV from a static, resource-focused perspective to a dynamic, action-oriented framework. The paper contributes to theory by highlighting the role of human agency in knowledge creation and offers practical implications for designing management systems that unlock innovation and performance.

Keywords: Agentic Management, Knowledge-Based View (KBV), Knowledge Creation,

High-Performance Work Systems (HPWS), Competitive Advantage, Human Agency.