Strategic problem-solving in the knowledge economy: Bias mitigation, knowledge conversion, and innovation

Abstract

This article explores the role of cognitive biases and innovative problem-solving tools within the knowledge economy, focusing on how organizations can improve strategic decision-making in volatile, uncertain, complex, and ambiguous (VUCA) environments. Through a systematic literature review, we identify key methods, such as reframing, crowdsourcing, and TRIZ, that organizations can use to overcome cognitive biases and enhance their ability to solve complex problems. These tools enable firms to leverage external knowledge, foster innovation, and respond more effectively to market disruptions. By examining empirical studies and theoretical frameworks, this research highlights the importance of integrating knowledge-based strategies and external innovation mechanisms to improve organizational agility and resilience. The findings have broad applications at the firm, industry, and national levels, making significant contributions to the fields of technology management, entrepreneurship, and sustainable development. Our study underscores the potential for knowledge-based problem-solving approaches to drive breakthroughs in business strategy and enhance long-term competitiveness in an increasingly knowledge-driven global economy.