In knowledge alliance, tacit knowledge conversion is a systematic process, concerning the interaction of sourcing enterprises, absorptive enterprises and tacit knowledge flow between them. Effectiveness of tacit knowledge conversion is one of the important criterions to measure the effect of alliance operation. However, effectiveness of tacit knowledge conversion cannot satisfy the expectation of enterprises in practice, because it is restricted by many factors. Because of this, it is an urgent problem to be solved to realize the effectiveness of tacit knowledge conversion in knowledge alliance.The first chapter in the paper put forward the research subject. It finds out the research current-situation and developing direction of correlation theory, and elaborates the research method, breakthrough point and innovations. The second chapter analyzes the influencing factors of tacit knowledge conversion in the sights of sourcing enterprises, absorptive enterprises and interactive process. Chapter three divides the systematic process of tacit knowledge conversion into source module, absorptive module and interactive module, using system dynamics thoughts. Through the carding in the way of casual analysis, chapter three finds out the influence direction of influencing factors based on theoretical analysis. According to casual analysis, system dynamics model is built with flow, rate and auxiliary. Using the software Vensim to emulate the system dynamics model, we could get the crucial factors by changing the parameter value of influencing factors and sensitivity analysis. Based on the results of emulation, chapter four finds out the way to improve the effectiveness of tacit knowledge conversion that is enhancing alliance-interacting mechanism, improving absorptive capacity and reinforcing protection and motivation of governmental policy.By the way of theoretical analysis and simulation, this paper concludes the crucial factors in three modules. In the source module, ability of knowledge output is the most important factor; while absorptive ability in absorptive module and interactive mechanism in alliance in interactive module. |