ABSTRACT:– There is an unequivocal need for knowledge in providing the coherent structure, for organizations to understand the required knowledge and standard by which they increase the relevance-oriented role of external knowledge. The internal resources of organizations are simply inadequate to deal with the recent innovation challenges. Nevertheless, organizational management is progressively exposing the value of external knowledge as an essential component in retaining a competitive advantage. As such, when the innovative climate changes, the organizations must quickly adopt. The lens of external knowledge enhances the conditions of quality improvements in organizations. Therefore, in a constantly evolving environment encompassing economic changes, ever evolving technology, political influence and social environment, external knowledge becomes an essential mechanism of organizational survival and performance. Hence, the paper examines the contributory role of external knowledge emerging from customers, suppliers and competitors toward creating greater innovations. The paper presents external knowledge as a mechanism for detecting opportunities and possessing a high level of innovation. It explores the impact of external knowledge in organizations. Moreover, the significance of external knowledge necessitates the point of exploring, highlighting and analyzing the unending function of external supports and assets in organizations. The paper conducts a systematic review of literature placing the importance of external knowledge in the innovation. A substantial contribution to the understanding of how organizations develop competency for innovation through external knowledge is provided. The findings establish that external knowledge is a fundamental element that needs adequate attention in the innovation process. Based on the review, external knowledge may be an important factor when the information gathered is shared and tactically applied through the knowledge management processes which plays a key role in influencing innovation within the organizations. External knowledge is vital to the innovative process and for the overall functioning of the organization as it plays a pivotal role in creativity. Furthermore, it serves as an avenue to provide additional information that could not otherwise be garnered from internal sources. In this regard, acquiring knowledge from an array of different sources including external source provides the foundation for a well-rounded problem-solving process for organizations. In general, the literature leans toward the viewpoint that external knowledge substantially motivates employees toward innovation.

Keywords: Knowledge, External knowledge, Organization, Innovation.

Field: Social sciences