Entrepreneurship and Organised Crime
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Entrepreneurship and Organised Crime

Entrepreneurs in Illegal Business

Petter Gottschalk

Entrepreneurship and Organised Crime provides a fresh and realistic insight into the problem of organised crime activity and the role of entrepreneurs in illegal business.
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Chapter 8: Knowledge Management in Criminal Entrepreneurship

Petter Gottschalk


The purpose of this chapter is to apply the resource-based theory of the enterprise to criminal entrepreneurship in criminal business enterprises to shed new light on organized crime in an entrepreneurship and innovation perspective. This chapter makes a contribution to existing theory. Using a resource-based theory approach, this chapter attempts to develop new means of conceptualizing organized crime. It is timely in as much as this is a growing area of concern for researchers active in entrepreneurship. Knowledge is an important and often the most important organizational resource. Unlike other inert organizational resources, the application of existing knowledge has the potential to generate new knowledge. Not only can knowledge be replenished in use, it can also be combined and recombined to generate new knowledge. Once created, knowledge can be articulated, shared, stored and re-contextualized to yield options for the future. For all of these reasons, knowledge has the potential to be applied across time and space to yield increasing returns (Garud and Kumaraswamy, 2005). The strategic management of organizational knowledge is a key factor that can help organizations to sustain competitive advantage in volatile environments. Organizations are turning to knowledge management initiatives and technologies to leverage their knowledge resources. Knowledge management can be defined as a systemic and organizationally specified process for acquiring, organizing and communicating knowledge of employees so that other employees may make use of it to be more effective and productive in their work (Kankanhalli et al., 2005). Knowledge management is also important in inter-organizational relationships. Inter-organizational...

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