After hearing a seminar on organizational learning, a mining company executive argues that this perspective ignores the fact that mining companies could not rely on knowledge alone to stay in business.
They also need physical capital (such as digging and ore processing equipment) and land (where the minerals are located). In fact, these two may be more important than what employees carry around in their heads. Evaluate the mining executive’s comments.

Although less common, many executives still view land and capital as a company’s most valuable assets. They give lip service to the idea that “People are our most value assets” but still don’t understand that land and capital have little value without people. For instance, this mining company would not have found land with ore deposits unless it had the knowledge to 1ind those minerals. It could not operate the equipment to extract and re1ine the ore unless it had enough knowledge. The executive’s comment that companies cannot remain in business with only knowledge is incorrect. On the contrary, some of the wealthiest organizations (including many software companies and consulting 1irms) have few physical assets. Banks are selling off their corporate headquarters because their competitive advantage ‐‐ their source of wealth ‐‐ is found in knowledge. Mining companies are also outsourcing several aspects of physical assets. Their ships and rail cars are often owned by others. The digging equipment is leased or owned by companies that specialize in drilling. The major oil companies today are mainly in the knowledge business – prospecting for minerals or marketing what others have found and extracted. This question also suggests a subtle misunderstanding by the executive about knowledge management. Although much corporate knowledge resides in the brains of its employees (called human capital), it also resides in the