Construction Of Core Competence Of Knowledge-based Firm Based On Knowledge Management Theory

Citizens' normal life has changed greatly because of the drastic development of IT technology and the widespread use of Internet. The quantity of knowledge and information grows fast. And corporations get more and more benefit from the management of knowledge. So how to effectively utilize this system to achieve organization's goals is a hot topic in the research field.This paper aims to answer the question: how to make use of the knowledge-management theory to construct the core competence of a knowledge-based firm. The main work involved in the paper is as follows:1. Related theories are reviewed to get known the development of knowledge-management, core competence and knowledge-based firm theory;2. The relationships between knowledge-management, core competence and knowledge-based firm are discussed;3. The essentials and flows of the construction of a knowledge-based firm are summarized.It is found that human resources and knowledge are the foundations of a knowledge-based firm. The investment and development of these two resources can help firms keep vitality and activity. A case is studied at the end of the paper to apply all the theories and findings above.