The Mechanism Of Tacit Knowledge On Competition Advantage

In recent years, the speed of the development and acquirements on new knowledge has been accelerated along with the ever-rising competition among firms, and the life cycle of products is shorter and shorter. Natural resources, labor, and even technique cannot provide the competitive advantage (CA) for enterprises. With the rising of knowledge-based economy, knowledge is considered as the headspring for enterprises to obtain and retain CA, while tacit knowledge (TK) is considered as the most important factor for the competition and development of enterprises. The basic path of acquiring CA for enterprises is to create and make use of TK, whose importance in giving an impetus to enterprises is becoming obvious. At presen, many Chinese enterprises have realized the stratagem value of tacit intellectual capital. However, the research on TK, especially on the relationship between TK and CA is just at the early stage. Therefore, it is necessary and urgent to study how to manage TK effectively.Based on the former research results, this paper will summary the research of CA, the connotation, category and explication, and the present study of their relationship following its development with some methods, such as analysis with comprehensive, case study, systematic analytic approach. Then, the paper will discuss mechanism of action of TK to the competitive advantage based on explicable tacit knowledge and inexplicable tacit knowledge. Namely, as for tacit knowledge, government's macro-management and enterprises' micro-measures should be taken in order to utilize TK. While, as for inexplicable tacit knowledge, metaphoring, exerting an imperceptible infuence should be adopted to achieve the value of TK. Immediately after, combining the cases to make a further analysis to this, which are proof for the the title.The conclusion of this paper can be drawn by studying on the mechanism action of TK on CA. Firstly, the knowledge management has been taken seriously by more and more enterprises and is a new trend of management. Secondly, tacit knowledge management is the real source of competitive advantage for enterprises; Once again, as for tacit knowledge, government's macro-management and enterprises' micro-measures should be taken in order to utilize TK. Finally, as for inexplicable tacit knowledge, metaphoring, exerting an imperceptible infuence should be adopted to achieve the value of TK. In addition, the outlook on the later is made, such as strengthening the quantitative study and substantive research on TKM etc..