- Although knowledge based theories of the firm and capabilities perspectives provide important understanding to the organisation and development of a firms knowledge, the insights of Austrian economics present a third but neglected approach to knowledge based perspectives. Austrian economics subscribe that the key knowledge problem is how to adapt to unanticipated change when knowledge experiences are dispersed in the market. Through the discovery of resource complements, a conceptual model is developed to explain adaptation in terms of the coordination of diverse knowledge experiences. This conceptual model is drawn from the entrepreneurial behaviours of Austrian economics and strategic network perspectives. This conceptual model is also used to explain the coordination of resource complements by exploiting inter-temporal knowledge experiences. Knowledge based strategies are, thus, developed with this model. Implications of this model to knowledge-based theories are also discussed. 2005 Inderscience Enterprises Ltd.