According to an article at http://mpra.ub.uni-muenchen.de/1317/ , appropriation has two possible meanings: "the act of making usable" or the fact of “making something belong, become our property" The term knowledge appropriability is used commonly amongst doctors and practicioners. When using the term in the context of an individual amongst it's community, it means it is a way of gauging the validity or usefulness of knowledge through out a common practice. A summary found on www.sciencedirect.com in searching "codification", explains how today's organizations have a high demand for intense problem-solving attributes in employees. This demand is taking the place of more traditional, implied or tacit knowledge employees. Through means of codification or standardization, tacit knowledge is still important, but today's technology is gradually replacing work that was once performed by humans. I believe this more evolved, knowledge-equipped workforce has something to do with the appropriation of knowledge and competitive advantage of organizations. The more intelligent employee is becoming a valued asset, because big systems and machines require intelligent people to develop, manage and operate.
Knowledge appropriation is important to competitive advantage because there is gain to an organization if the creativity of a human resource is producing knowledge that is superior to competition. An example could be how one individual develops a software that runs a robotic arm in manufacturing that assembles parts and in turn, it increases productivity, reduces costs of converting output and allows them to supply more people than other firms.
According to wikipedia, other firms can compete through means of complimentary assets, such as; brand recognition, or marketing power. A firms' dominance in the market or loyalty from consumers can allow it to remain competitive. A good example on wikipedia is of the company RC COLA. They developed the first diet drink. Though they were first to the market, soon competitors like Pepsi, because of customer loyalty, were able to copy the drink and begin driving business to their product.
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