A Research On The Knowledge Capital Of The Firm

On the basis of the resource-based theory springing up in 1980s, the theory frame of firms' knowledge capital is constructed by taking advantage of economics, management and game theory. In addition, that knowledge capital accumulated in the process of firms' growth is the resource of competition advantage is addressed and an explanation of firms with different ability to make profit is given in this thesis. The research includes:1. The economics analysis of knowledge. In a perspective of economics, it is proposed that knowledge can be economic goods or private goods conditionally by giving it a definition. It is also addressed that the relation between input and output is uncertain, the output can't be possessed by the producer totally, and the costs vs the profit of learning is incomplete corresponding, by studying the product, transfer and diffusion of knowledge.2. The knowledge analysis of firms. In a perspective of knowledge, the nature of the firm is discussed, as a conclusion, firm is treated as a more efficient institution in accumulating knowledge than market. By making use of such mathematical tools as game theory, the "access" of deriving competition advantage and profits from knowledge capital is provided. It is also elaborated that why some firms gain knowledge capital and continued earn rent.3. The composition of knowledge capital. Such knowledge capital as organization capital, technology capital, market capital is studied in the thesis, and the content of knowledge capital, the "access" these capitals evolved and the factor retaining the ability to make profit are explored as focuses.4. The operation of knowledge capital. Those firms accumulated knowledge capital in the special way as they usually do can get increasing returns to scale, and each knowledge capital's contribution to the firm's profit is non-linear. Thus, firms can improve profits by changing capital combination. How to change the combination, especial by strategic alliance is also addressed.The following conclusions are drawn from the research. Firm's rent obtained from the product market is decided by the disparity of their output, which is derived from the firm's factor difference such'as knowledge. Because of information asymmetry, man's limited rationality, and sophistication & uncertainty, decision-makers of firms can't find the "optimal" access of accumulating knowledge, but only feel the access elusively. However, since firms are different in the expectation accuracy, control ability and understanding of complex, a few firms that found better access can accumulate valuable knowledge with lower cost and higher speed. Because of the isolating mechanism and the mobility barriers, the ability of knowledge capital to earn rent can be relatively sustained.