The knowledge-based view of the firm (KBV) is a distinct paradigm that is often misunderstood or conflated with related fields. As we enter an era where knowledge becomes increasingly central, it is crucial to address these misconceptions. In the first part of this chapter, we discuss the origins of the KBV, highlighting how it differentiates itself from the resource-based view of the firm and how knowledge management serves as its practical application. In the second part, we establish the foundations of the KBV and provide insights into its two main components: a theory of knowledge and a theory of the firm.