This study investigates how generative artificial intelligence (Gen AI) transforms the Knowledge-Based View (KBV) of organizations by reshaping traditional mechanisms of knowledge creation, transfer, and application. Using a grounded theory approach, qualitative data were collected from 23 professionals across diverse AI-related industries. The findings reveal that Gen AI facilitates the conversion of tacit knowledge into explicit forms, enhances knowledge storage and retrieval, and introduces new coordination mechanisms, including human-machine and machine-machine interactions. These transformations significantly optimize knowledge integration and decision-making processes while also posing challenges related to intellectual property, accountability, and the limits of AI in handling contextual and personalized knowledge. The study extends KBV by incorporating Gen AI as a dynamic and transformative agent, highlighting its dual role in advancing organizational efficiency and raising complex managerial and ethical questions. These insights provide a theoretical foundation for understanding how AI reshapes competitive advantage in knowledge-intensive contexts and offer practical guidance for organizations navigating the digital age.
