China is currently is the world’s fastest developing economy and the implementation of Knowledge Management has made a significant contribution to the dynamic progression of the Chinese economy. China is making intense efforts to develop its industry and effective means of knowledge management and sharing for faster development in the industrial sector. China realized that progress depended mainly on becoming a knowledge-based economy. Despite its rapid progress, knowledge management is not as extensively implemented as in Western countries. However, since the extensive implementation of Knowledge Management, China had taken giant steps in economic development and progression.
Knowledge Management is essential for all organizations, and entrepreneurs in China are according it the highest priority. To keep up with the rest of the world, the Chinese government initiated economic reforms for a free market economy by encouraging enterprise independence and self-sufficiency, reduced government controls over large businesses which attracted direct foreign investment. This changed the business environment and heavily influenced the development of Chinese organizations. Western companies rushed in to avail access to the enormous domestic markets, abundant resources, and low capital costs. The western companies realized that without effective management at all levels; this huge potential could not be exploited to its fullest capacity.
Unlike their western counterparts, Chinese companies did not possess the management expertise and experience that is absolutely essential for large modern organizations. Chinese companies began adopting western style management techniques including the concept of knowledge management.
The benefits that they derived from KM gained its wider acceptance which resulted in almost all Chinese organizations making it a standard part of their company’s operating procedures. Management of Knowledge is the most important driver of development in today’s knowledge-driven economy. Any organization gains a competitive edge from its competitors by its intellectual capital. The progress of the organization is tied with employees’ teamwork and also individual efforts.
The management must know how to get employee cooperation and collaboration. Knowledge Management strategies are very important for the development of intellectual capital. It is also important to state here that regarding the different questions that were included in the questionnaire many of them remained unanswered.
This showed that the level of awareness among senior manager and other employees who were handling the responsibilities of information handling and management in these organizations were not competent enough to answer the questions in a cohesive manner. Some of the results related to some major aspects of knowledge management have been presented in the form of a questionnaire which will make overall assessment understandable