| One of the definitions of the Core Competence is that "knowledge shared inorganizations, especially technique to coordinate the separate production andknowledge to integrate various technologies." It is also communication andparticipation between the organizations and job commitment. It involves all functionsand employees within the organization, and does not decrease for being used.Generally, Core Competence has the following characters: 1. uniqueness, being onlyfor the enterprise;2. ductibility, making the enterprise enter into the related marketscompetition;3. value, making the enterprise create value for customers;4. unable toimitate. If the enterprise wants to obtain and maintain the competence advantage, itshould compete in core competence, core products and the final products.Because functional strategies such as market strategy, product strategy,technologic strategy are apparent, any enterprise only obtains the temporaryadvantage at most in furious competition if it only relies on one or two functionstrategies. Only cultivating core competence is the fundamental strategy for theenterprise to success. Generally speaking, Core Competence is the integration of aserious of skills and knowledge within the organization.Enterprise knowledge is intangible in nature, the symbol system of enterpriseknowledge is the aggregated expression and record of common glossary beingcomposed of the legal facts, belief, constraint and taboos in the organization. The rulesystem of enterprise knowledge is composed of management, operation, optimizationand regulation in the enterprise. The function of enterprise knowledge is responsiblefor cooperation, management, distribution of organization resources to maintainformal operation of all function in the enterprise. Enterprise knowledge is thefoundation for it keeping its rationality and exploitation, which means with thesupport of enterprise knowledge, specialists and employees and resources needed canbe worked harmoniously in organization, not bringing the organization behaviors ornature to change suddenly.The reasons that enterprise knowledge is regarded as core competence arefollowing: Firstly, knowledge is different from the traditional resources which are attainedeasily from outside market. Every enterprise is an aggregation of the specialknowledge, which is unique and unable to being imitated, and can not be bought fromoutside market. In order to get similar knowledge, competitors must be experienced inthe similar environment, which often means a long way to go.Secondly, the knowledge structure formed by current knowledge existing in theenterprise determines the chances of enterprise in future and the ways distributedresources. The difference between the utilities of all kinds of resources in theorganization is determined by the current knowledge structure.Finally, the cognitive ability related with enterprise knowledge determines itsaccumulation in the enterprise, thus determines the competition advantage of theenterprise. Hence, the differences of enterprise knowledge are the reasons that resultin durative differences between enterprises performance.The logic relationship between enterprise knowledge and core competence is asfollows:1. Enterprise knowledge functions mutually with enterprise resources, formingthe foundation of core competence.Enterprise knowledge and enterprises resources are groundwork, which is morestable, that is to say, enterprise knowledge and resources are more abundant, thelearning ability is stronger and more durable and more effective, the competitionadvantage of enterprise is stronger and more durable. The enterprise background isintangible and difficult to be identified by the competitors, especially difficult to beimitated by competitors. The management belief of the enterprise, corporate culture,relationship between the enterprise, the logic and path of the enterprise development,influence heavily to personal learning and organization learning, thus affect the finalform of core competence.2. Learning is the necessary path to form core competence.It is through the median mechanism that knowledge transforms to core competence ofthe enterprise. In the enterprise background, core competence transforms theresources into work routine, then integrates enterprise tradition into all kinds ofabilities through personal learning and organization learning, and form corecompetence finally.3. Knowledge transformation and circulation determine the form andmaintenance of core competence.Enterprise knowledge can be divided into latent knowledge and apparent knowledge.Latent knowledge includes belief, metaphor, intuition, thinking mode and what iscalled "secret of success". Apparent knowledge can be transmitted by normalized andsystematized language, it is also named textual knowledge. During the enterpriseinnovation, latent knowledge and apparent knowledge reciprocate and transformmutually. In fact, the process of knowledge transformation is the course of knowledgecreation. Knowledge transformation has four basic mode: Socialization,Extemalization, Combination, Internalization4. The conformity and innovation of knowledge shape the dynamic corecompetence of enterprise.During the shaping of core competence, "conformity and coordination" exert animportant role. Conformity and coordination include longitudinal and latitudinallevels: longitudinal level is mainly the relationship of conformity and coordinationfrom bottom to top. Such as through conformity organization learning transforms intowork routine;through conformity, work routine transforms into enterprise ability;byconformity, the ability transforms into core competence of enterprise. Latitudinal levelis the conformity and coordination within each organizational level.The success of competition is from the continuous development and restructuringof enterprise's unique asserts. How to develop and renew the internal ability ofenterprise, that is to say, making the ability that enterprise creates new knowledge andspread it into organization, will determine whether enterprise adapt rapidly to changedenvironment. The successful competition is determined by the ability that theenterprise restructures the organization's skills and resources. How to get knowledgeand utilize current knowledge, how to exploit new knowledge and being benefit fromit, are dependent on the ability of the enterprise restructuring knowledge.Under this logic structure, the dissertation analyses knowledge shared inorganization and the process and obstacle that knowledge obtained from outside theenterprise, giving an exploring study to the solution.It is thought whether knowledge transference successfully or not is relied onwhether it is migrated, understood and absorbed easily. The great difficulty ofknowledge migration is the knowledge obscurity. Knowledge inertia, obstacle incommunication and dormant information influence the ability of transference;theillegibility of unclear cause and effect, activity and results, technology and uncertaintyof resources produce learning obstacle, thus increase the difficulty of knowledgetransference. The seven factors, dormant and assert specialty, complexity, ability andexperience, cooperators protection, culture variation and the organization variationbetween cooperators, influence mutually the degree of knowledge uncertainty. Thefactors such as environment of knowledge shared, the difference of employee'sknowledge, the difference of evaluation to knowledge shared, the difficulty of judgingthe latent value of knowledge shared, the constraint of organization form, the scarcityof technology, the unreasonableness of incentive mechanism, the lack of organizationculture, influence the enterprise knowledge shared in the organization. The degree ofknowledge shared in organization and transference can be improved greatly byestablishing a supervised committee, evaluating the transferring knowledge, setting upthe frame of knowledge transference, making the organization goals andcorresponding knowledge content, stipulating the right way for each kind ofknowledge transference, continuous seeking to advance the system and developing asynthesized system of knowledge transference.There are many ways to obtain outside knowledge, for example, thecollaborating enterprises, competitors, universities, collaborators, national laboratories,consultants, and other ways. The main factors which influence the knowledge spreadout are transferred knowledge, knowledge sources, knowledge receiver, and thedistance between receivers. During the transference, trust is important because thereceivers of knowledge transference should believe on some degree that knowledgeowner is dependable and keeping his commitment. It can be acquired successfullyoutside knowledge through increasing consciousness of knowledge shared,establishing the credit on a high degree, strengthening the cooperation, improving thelearning ability of the receivers, highlighting the function of informal communicationchannels, making sure of the learning goals, improving ht techniques of appliedknowledge. At the same time, taking measures in consciousness, organizationarrangement, benefit mechanism, development mechanism to decrease the level ofstagnancy of knowledge, to transform the stagnant knowledge into transferableknowledge, thus realize the successful transference of stagnant knowledge.The substantial ways to realize knowledge shared and transference are personlearning and organization learning. Organization learning should be satisfied with thefollowing three terms: Firstly, the organization has knowledge source, that is to say,the person and team is good at innovation, because person learning is the start oforganization;Secondly, the organization system has fluent system of knowledgetransference, enabling knowledge of the minority to transform into knowledge sharedby organization;Finally, organization can improve its activity and performancethrough increasing its adaptability to environment. Hence, organization learning is arenovation process, a process of discovering its problems and outside chances andcontinuous changing or redesigning itself to adapt to the change of environment.Organization learning has three levels: uni-circle learning, double-circle learning,re-learning. Generally, the process of learning can be divided into 4 steps, however,these steps have no orderly relation: 1. Identifying and learning the information that isseemed about knowledge innovation;2. Knowledge intercommunion and diffusion,from personal level to organizational level, or only in organization level;3. Inorganizational level or personal level, or in both of them, knowledge is combined intocurrent knowledge system or organizational rule, then the system is combined orbettered. 4. New knowledge is transformed into activity and is employed inorganization routine, which will influence organization action (such as: developingnew leadership style, new service, new product).In order to facilitating employees sharing knowledge with others, especiallysharing those latent knowledge, enterprise should establish knowledge managementsystem in which knowledge is shared through designing suitable system ofmanagement, incentive, and evaluation.The nature of knowledge innovation is introducing new knowledge intoknowledge system or practice. Application will test whether new knowledge isscientific. The theory of knowledge innovation has been expanded and includes threekey points: The first is the concept of knowledge management, especially the functionof top management and leaders. It emphasizes obscure knowledge and cultivation ofpersonal and collectivity experience, not dependence on transaction of advancedtechnology. The second is about the space of knowledge innovation, scholars linkknowledge innovation in organizations with organizations in industry zones. The thirdis innovation within areas. The enterprise should discard product imitation anddevelop product innovation by employing inner knowledge existing culture heritage.The effective way to realize knowledge innovation is exerting organization rules,improving the enterprise's ability of absorption and transformation, realizingknowledge transference and innovation through virtual network, establishingcorporate culture of encouraging innovation.Knowledge becomes intelligence product for its utility. Intelligence productmarket came into being for the transference and transaction of intelligence product, ithas many characters that same as traditional market. However, since the intelligenceproduct has its own particularity, the management of intelligence product market hasbecome a problematic field but few take an attention. This dissertation exploresincentive of inner knowledge market and the inevitability of the development of theknowledge agency market. Firstly, the knowledge activity is analyzed in organizationby using principal-agent model, and three conclusions are gotten: The activity oftransferring and sharing knowledge among employees should be inspirited, especiallythose knowledge shared and transference between top specialists;Knowledge shouldbe transferred from its owner to others in organization through privatizing theknowledge assets ownership and communicating between employees;Encouragingknowledge owner sharing and transferring their knowledge in organization bycompensation system, on the one hand, promotes knowledge spreading out wholeorganizational level to maximize knowledge assert value, on the other hand, preventscore knowledge flowing out and form a knowledge bulwark to competitors tomaintain its core competence. Secondly, the inevitability of the existence anddevelopment of knowledge product media market is analyzed by using evolutionarygame theory. The thesis also point out that in order to achieve a transaction andimprove the efficiency of market transaction in knowledge product market, thereshould be a median agency or organization, supplying reliable information for buyersand sellers, which includes the quality of knowledge product, price and the credit ofthe dealers. Besides, how to utilize knowledge asserts to get values and the protectionof knowledge ownership are also discussed.At last, based on the investigation of XYZ corporation, the author analysis howtechnology and knowledge play a role during the process that a manufactureenterprise buys technology, then imitates manufacturing and forms new technology,establish its own core competence to taking up a place in the same product market inthe world. Thus validate the theme of "enterprise knowledge is the source of corecompetence".
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