Chinese High-tech Enterprise Knowledge Management Capabilities And Performance

By applying various theories of knowledge management, human resources management, statistics science and systematical view, this work studied the relationship between the elements of knowledge management and the performance of enterprises of China's Hi-Tech industry. The analysis was based on both case studies and model building.We propose that the performance of knowledge management of enterprises depends on three capabilities, namely, the process capacity, the knowledge innovation capacity and the infrastructure capacity. The strength of these three capacities will have a direct bearing on the performance and development of knowledge-based enterprises.The process capacity includes the acquisition, transfer, application and protection of knowledge. The knowledge innovation capability reflects the influence of corporate management, environment and culture on employees' acquisition and application of knowledge, strategies, incentives, and culture determine how effective the employees can be brought into play. The infrastructure capability mainly corresponds to technology and corporate structure. By studying the elements affecting the aforementioned capabilities, one should be able to obtain the relationship between corporate performance and knowledge management.This work applied the approach to the analysis of Chinese Hi-Tech enterprises in knowledge management and corporate performance. We further analyzed the existing problems and suggested possible remedies.Conclusions from this study:1. This study puts forward a model for the relationship between enterprise knowledge management and corporate performance. The knowledge management capability isfurther divided into process capability, knowledge innovation capability and infrastructure capability. This model was verified by an empirical analysis of 270 surveys from 132 enterprises.2. For Hi-Tech enterprises in China, strong correlations (p=0.01) were found between corporate performance and process capability, innovation capability and infrastructure capability. The innovation capability contributes more to corporate performance, followed by process capability and the infrastructure capability.Within the innovation capability, the influence of culture plays a most important role, followed by incentives and strategies. With regard to the process capability, the application of knowledge plays the most important role, followed by knowledge transfer, acquisition, and protection. With respect to infrastructure capability, both technology and corporate structures play a significant role.3. The acquisition, transfer, application and protection of knowledge show different patterns in enterprises of different sizes, fields, organization structures, and ownerships:(a) For enterprises of different sizes, obvious differences were found in terms of application and transfer of knowledge for two groups of enterprises, one with sales amount from five million to 30 million yuan, and the other one from 30 million to 200 million yuan, while no difference could be detected in the acquisition and protection of knowledge.(b) For enterprises in different fields, notable differences were seen in the acquisition of knowledge among IT and modern agriculture, biotechnology and modern agriculture, aeronautics and modern agriculture enterprises, while no difference appeared in the application and transfer and protection of knowledge.(c) For enterprises of different organization structures, apparent differences existed in the acquisition, transfer and protection of knowledge between enterprises with verticalfunctional departments or multi-tasking-departments and those with matrix style departments. Notable differences also existed in the application of knowledge between enterprises with vertical functional departments, and those with network and matrix style departments.(d) For enterprises of different ownership structures, marked differences in knowledge protection were observed between state-owned or state-controlled enterprises, and private or stock holding ones, while no difference appeared in the acquisition, application, and transfer of knowledge.4. The hypothesis put forward in Chapter IV has been verified and supported by the findings of the statistical analyses in this study.5. The case studies attest to the applicability of the model of enterprise knowledge management. The results reveal great disparity: enterprises founded and invested by multi-national corporations are notably systematical and integral in knowledge management, and the combination of advanced managerial concepts with traditional Chinese culture in knowledge management is impressively unique and scientifically sound. The Chinese local enterprises, however, do not display clearly discernable features of knowledge management. Most of these local enterprises conduct knowledge management by relying on covert or generally acceptable rules in different trades, and their knowledge management is still in the primitive stage.