The economy has shifted from a traditional economy to a knowledge-based economy, which comprises increased competition, changes, and complexity. Knowledge is seen as the most important asset, and consequently this has forced companies to focus on this asset with the aim to manage it intelligently for competitive advantage. Knowledge is regarded as the driver of productivity and economic growth, making companies ever more reliant upon effective managing of knowledge. This has driven the need for knowledge management forward, in which the people/cultural aspect is of greater importance that of processes and technology. Knowledge management is regarded as an approach to create the ‘right’ environment that enables and encourages knowledge sharing and creation, and establishes learning as a continuous process within the company. The ‘right’ environment is created by enhancing a knowledge-sharing culture, where important factor is required such as motivation, trust, openness, reciprocity etc. between people, and must be supported by the management in the company. To get the ‘right’ environment, the organizational infrastructure and processes such as level of hierarchy, level of collaboration versus competition, structure, and spaces, and these must work as enablers not barriers. The organization should try to become learning organizations, because they can constantly generate new sources of knowledge due to their superior ability to learn and share. A more effective exploitation of knowledge assets and faster learning than the competitors, is crucial in order to sustain a competitive advantage.