This paper evaluates the importance of knowledge management in enhancing innovation in the hospital sector in Beirut area. On this emerging economy, organizations are more aware of developing knowledge for a reason to be comparative in the market and gain a sustainable competitive advantage. (Association of Marketing, Bancario, Argentine, 2000).Information and knowledge become an essential resource for all businesses. It is considered a vital concept and process in conducting any business.In this paper, I conduct a study of the importance of knowledge management in achieving innovation and development in the hospital sector. This study consists of two parts: theoretical and practical. In the first part, I try to address the concept of knowledge management, learning, and innovation in general by discussing the processes of knowledge management and the authors’ point of views. Then, in the second part, I establish a questionnaire survey about this topic, and I distributed in different hospitals in Beirut. As a result of my study, I realize that knowledge management, in general, is not a priority issue for the selected hospitals, and the relationship that exists between knowledge management and innovation is moderate, and this means that knowledge management in these hospitals is not the main reason for innovation. For this reason, hospitals must care more about knowledge management and must recognize that it is an essential part to reach innovation, development, and survival.
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