The Effects of Knowledge Competence on Organization Performance: An Empirical Research

Basing on the view of dynamic capacity and knowledge-based view, this paper explores the definition and dimensions of knowledge competence. Differing from previous literature that think knowledge competence is the sum total of the knowledge assets of organizations, this paper defines knowledge competence as including both knowledge accumulating and knowledge operating capabilities. And an empirical study is conducted to study the effects of knowledge competence on organization performance. A number of researchers suggest that locally embedded knowledge and skills may be a competence for the firm and a source of enduring competitive advantage. The result of our study suggests that a focus on knowledge operating capabilities as a source of enduring competitive advantage may provide useful insights into the sources of enduring differences in organization performance. It also supports the view that the ability to integrate knowledge both across the boundaries of the firm and across disciplines and product areas within the firm is an important source of strategic advantage