Embarking on the discourse of knowledge governance demands an acknowledgment that any transition, especially from conventional capitalist economic systems to a knowledge-based economy, is laden with challenges and uncertainties. This transition has witnessed significant capital fluctuations in various institutions, leading to mismanagement and widespread corruption fueled by misconceptions. The repercussions include economic collapses in major international businesses, highlighting the absence of transparency in financial reporting and accounting procedures.
In response to the issues of corruption, mismanagement, and the lack of a knowledge economy culture, a compelling need arises to reformulate economic strategies under the paradigm of the knowledge economy. This involves making information available about the anticipated risks of this new approach while integrating institutional governance principles. The goal is to establish a robust institutional framework with binding rules and structures for all economic stakeholders.
Amidst this transformation, consulting and management expertise entities have emerged, offering knowledge management programs. Organizations are investing in projects related to knowledge-economic management, signaling a shift towards a more informed and strategic approach.
Governance, as defined by advisory bodies like the IFC and OECD, revolves around the system through which companies are managed and controlled. It entails the relationships between administrators, the board of directors, shareholders, and other stakeholders. Governance ensures the existence of systems governing interactions among core parties, influencing performance and fortifying institutions in the long run, emphasizing manageability and responsibility.
The concept of knowledge governance has gained prominence due to contemporary changes in technology and accountability. This integration of knowledge and the economy is crucial for fostering a knowledge economy that leverages economic knowledge within enterprises to maintain competitiveness and adhere to best practices. In an era characterized by change and transformation, redefining cognitive and economic strategies based on future visions becomes imperative.
Key governing factors influencing competitiveness and production indicators include recognition and response to the hallmarks of the information and knowledge age, scientific and technological progress, and the potential for regional and international cooperation. Supporting scientific and technological research processes, mobilizing necessary resources, and investing in intellectual output contribute to achieving added value in goods and services.
Corporate governance is pivotal in establishing a structure that allows freedom under the rule of law, adopting international standards of transparency, and ensuring accountability. This involves legislative adjustments, changing management strategies, and creating an institutional framework that prioritizes justice and transparency. The focus is on protecting shareholders, maximizing returns, and holding management accountable through financial performance reviews.
Strategic objectives, efficiency of board members, understanding their roles in governance, and identifying responsibilities are essential elements for the proper application of governance within institutions. Knowledge, without a strategic framework for seizing opportunities, becomes economically futile. Innovation serves as a strategic use of knowledge, necessitating adherence to governance legislation to enhance the investment climate and gain investor confidence.
The synergy between the knowledge economy and institutional governance requires the development of future-oriented strategies, fostering innovation, adapting to transformations, reforming institutional structures, and combatting bureaucratic impediments for improved efficiency. Mechanisms such as audit committees play a crucial role in ensuring good delivery, preventing malpractice, and preserving the integrity of financial statements.
In conclusion, the alignment of the knowledge economy with institutional governance is achieved through mechanisms that promote accountability, transparency, and integrity. As we navigate this dynamic landscape, the integration of knowledge governance principles becomes imperative for achieving a competitive advantage responsibly.
Author : Manahel Thabet
Published February 05, 2018
Al Bayan Newspaper
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