The Relationship Between The Composition Of The Enterprise Knowledge Management Capabilities And Business Performance

A hallmark of the new economy is the ability of organizations to realize economic value from their collection of knowledge assets as well as their assets of information, production distribution, and affiliation. Despite the competitive necessity of becoming a knowledge-based organization, many enterprises have found it difficult to transform their firms through programs of knowledge management. This research examines the issue of effective knowledge management from the perspective of organizational capabilities and discusses the relationship between firm performance and organizational knowledge management capabilities as well as the factors that influence them. The results provide a basis for understanding the competitive predisposition of a firm as it enters a program of knowledge management and a theoretical guidance for Chinese enterprises to carry out knowledge management effectively.This dissertation starts with review of abundant literature, then it summarizes some key concepts, sets boundary of research subjects, clarifies the theoretical rationale of the research, and concludes functional mechanism of the research subjects. Based on the efforts, this dissertation puts forward a conceptual model on relationship between the knowledge management capabilities as well as the factors that influence them and firm performance. On the basis of theoretical analysis, this dissertation brings forward a research model and some hypotheses for empirical research, makes investigation in 242 enterprises in Zhejiang, Shanghai and Shenzhen etc, analyzes the result of questionnaire investigation with SPSS 10.0 and AMOS 4.0.According to the result of investigation and data analysis, several research conclusions are drawn and the research model and hypotheses are adjusted. It is pointed out that knowledge management capability consists of four dimensions, namely knowledge acquisition capability, knowledge conversion capability, knowledge application capability, knowledge protection capability. Moreover, information technology, structural factors and cultural factors have remarkably positive influence on knowledge management capabilities and those factors execute their influence on firm performance mainly by affecting the corresponding knowledge management capabilities in firms. Further there is positive relationship between knowledge management capabilities and firm performance.According to strengthening knowledge management capabilities, it can prompt technological innovation capabilities, enhance adaptability, and improve internal work efficiency in enterprises. Enterprise development stage has significant interaction impact between knowledge management capabilities and firm performance. Thus the higher the stage belongs to, the greater the effects of the knowledge management capabilities on firm performance.