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M & D FORUM Research on Enterprise Technology Innovation Ability Under Knowledge Management Environment ZHAO Weishuang, LI Changsong School of Economic and Management, Shenyang Ligong University, P.R.China, 110168 [email protected] Abstract: Knowledge management is effective way to improve the enterprise technology innovation ability. The organic union of knowledge management and technology innovation will become important way for enterprises to gain competitive advantage. Based on the related theories, this paper analyses application status and existing problems of knowledge management in technology innovation activities, and finally presents concrete suggestions of using knowledge management to improve enterprise technology innovation capability. Keywords: knowledge management, technology innovation ability, competitive advantage 1 Introduction With the arrival of knowledge-based economy and the continuous development of economic globalization and the increasingly fierce competition among enterprises, competition in the market boils down to that of enterprise technology innovation ability. Anyone who has strong technology innovation ability will grasp the market initiative and win in the competition. Therefore, strength and weakness of enterprise technology innovation ability have become the decisive factor of survival and development of enterprises and the important content of enterprise management strategy. The essence of technology innovation ability is accumulation and application of knowledge, the effective implementation and application can easily bring distinctive competitive advantage to the enterprise. More than half of the world 500 strong enterprises have already established knowledge management system promoted knowledge management. At present, many organizations are willing to actively input and have their own expecting goals, a new round of management revolution wave is sweeping the globe. Therefore, the study of enterprise technology innovation ability under knowledge management environment has an important practical significance. 2 Definitions of Knowledge Management and Technology Innovation Ability 2.1 The definition of knowledge management The theories and practices of knowledge management originate from 1980s. The concept of knowledge management was firstly put forward in the UN international Labor conference in 1986, the theories and practices of knowledge management developed rapidly in the following more than ten years and the year of 2000 was confirmed as knowledge management year. The definition of knowledge manage of American production and quality committee (APQC) is: "knowledge management should be a strategy organization consciously takes, it can be guaranteed to transfer most needed knowledge to the people who need it the most in most needed time, which can help people to share information, and then through different ways into practice, and finally achieve the purpose of improving organizational performance." Peter f Drucker, a master of management, argued that, "knowledge management is to provide knowledge and effectively detect how existing knowledge best applied to effect, this is the knowledge management that we mean." Weijiang (2000)argued that knowledge management is to offer new ways for enterprises to realize explicit knowledge and tacit knowledge sharing, through sharing knowledge, using the wisdom of collective to improve strain and innovative abilities. The implementation of knowledge management lies in encouraging employees to participate in knowledge sharing mechanism. From the above, this paper simply defined knowledge management as, "knowledge management is the ﹒﹒ 506 M & D FORUM effective way of managing knowledge and realizing innovation, it is one of the sources of acquiring competitive advantage for enterprises, is the process of helping enterprises to seek, discover, organize and transfer important information to obtain competitive advantage." 2.2 The definition of technology innovation ability Schumpeter firstly presented the concept of innovation in 1912, this laid a good foundation for the presentation of the concept of technology innovation ability. After the 1980s, theorists officially proposed the concept of technology innovation ability to study and different scholars also made different definitions for technological innovation ability. BurgelmarIetal(1996) claimed that enterprise technology innovation ability is a series of comprehensive features which is convenient for organizing and supporting enterprise technology innovation strategy, including resources and distributions available, understanding ability on competitors, understanding ability for the development of the industry, company's organizational structure and cultural conditions, pioneering strategic management ability, etc. From resource factors of technical innovation starting with, WangJian(2000) decomposed factors of technical innovation ability into input capability, output capability of technology innovation and the capability of innovative activities process, internal support and social support ability of technological innovation of enterprises , etc. WangYiming's (2005) classification of enterprises' independent innovation ability, enterprise technology innovation ability is divided into choosing ability, research and development ability, integrated ability and learning ability. To sum up, this paper simply defines enterprise technology innovation ability as, "enterprise technology innovation ability is the resource inputs of technological innovation of the enterprise, the utilization of innovation resources in the technological innovation process, abilities of implementation and control management activities." 2.3 The relationship between knowledge management and technical innovation capability There is a close relationship between knowledge management and technology innovation. Essentially, technology is knowledge, skills and knowledge can't completely detach. Technological innovation is the essence of knowledge innovation, though knowledge innovation cannot necessarily cause technology innovation, technological innovation is not mentioned without knowledge innovation. From this point of view, knowledge management is the base of technology innovation, the effective implementation of knowledge management can promote the enhancement of technical innovation ability. If there is not strong support of enterprise knowledge management, enterprise's technical innovation ability is like source without water, wood without root, it will not last increase, which eventually leads to their own stagnation. Technology innovation process itself is a knowledge generation, creation and application process. Knowledge management can effectively control knowledge flow of technology innovation phase, speed up innovation speed. Improving knowledge management ability itself has been accelerating the realization of technology innovation. Technology innovation process itself is a kind of risk events, including various unpredictable uncertainties. Managing knowledge of both within and outside the enterprise can effectively reduce the risk of innovation and improve successful rate of innovation. 3 Application Statuses and Problem Analysis of Knowledge Management in Enterprise Technology Innovation Activities Enterprise knowledge management in our country is still in its early edge and stay with the surface layers for the application of knowledge management, did not fully take knowledge management into the technical innovation system. There are still insufficient aspects in how to use knowledge management to better improve the practice of technology innovation ability. 507 M & D FORUM 3.1 Enterprise's low level of knowledge acquisition Before forming the plan of technology innovation, enterprises must widely collect the relevant information and knowledge from the market. Meanwhile, combining enterprise's original foundation of knowledge, enterprises form technology innovation solutions. However, many enterprises lack of ways of acquiring knowledge and information and the level of knowledge acquisition is low, enterprises often make innovative decisions under the condition without gaining more perfect information, which causes enterprise's innovative decision-making existing biggish risk and further causes enterprise's innovation successful rate is low. 3.2 The weakness of enterprise's knowledge integration capability The goal of knowledge integration is to make enterprise saved and safety management from external knowledge obtained and internal knowledge created, and to create systematic, timely, efficient environment for communication and application of knowledge. From the realistic situation, enterprise's knowledge integration ability in our country is weak, this is mainly embodied in a lack of the platform and talents of effectively putting knowledge into integration, ignoring fully exploiting the recessive knowledge. If they can't effectively integrate enterprise's knowledge, it will do harm to the improvement of integration capability of technological innovation. 3.3 Enterprise's low level of knowledge application Only when knowledge which is distributed in every organization can comprehensively circulate everywhere in the organization and apply to solve practical problems do knowledge generate value to realize technology innovation. The importance of knowledge application is self-evident. At present, a major problem of the weakness of enterprises' independent innovation ability in China is that enterprise's research and development ability is not strong, this is mainly embodied in enterprise's insufficient investment on research, not forming encouraging culture atmosphere of technology innovation. In this case, only fully improving the applicative degree of knowledge can radically enhance enterprise's R&D competence. 3.4 The weakness of enterprise’s knowledge sharing consciousness Knowledge sharing is the key to success of knowledge management, especially the key of constructing learning-oriented organization and enhancing enterprise technology innovation ability. But because some enterprises lack of enterprise culture of knowledge sharing and incentive mechanism is unreasonable. There is no incentive for staff to contribute their knowledge to share. When the knowledge involves staff's performance quality, employees will not give knowledge sharing to others, enterprise's knowledge is very difficult to get sharing. 4 Promote Enterprise Technology Innovation Ability under Knowledge Management Environment Knowledge management has become an important enterprise management mode and brings new ideas for improving enterprise technology innovation ability, therefore, this paper gives some advice on how to promote enterprise technology innovation ability under knowledge management environment. 4.1 Improving the level of knowledge acquisition and enhancing decision-making ability of enterprise technology innovation The strength and the weakness of enterprise innovative decision-making ability is the key factors to success of technology innovation activities, quality of decisions directly affect the success and efficiency of technology innovation activities. Knowledge plays an important role in making technology innovation decisions, decisive maker's decision-making abilities mainly depend on whether it can timely have beneficial information and knowledge of decision-making. Therefore, how to fully play the key role knowledge in decision-making appears particularly important. The application of knowledge management makes the enterprise to be able to smoothly get a lot of external knowledge, and improves 508 M & D FORUM enterprise's quality and efficiency of making innovative decisions based on the complexity of knowledge. Through widely collecting information from internal and external, enterprises build knowledgebase and its management system, and make full use of knowledge management tools to increase enterprise technology innovation decision-making ability. 4.2 Improving conformity ability of knowledge and enhancing integration ability of enterprise technology innovation The main contents of enterprise innovation lies in knowledge innovation under the environment of knowledge management, integrated innovation is to knowledge integration. Another study found that the recessive knowledge of enterprises accounts for 90%, explicit knowledge only 10%. Therefore, knowledge innovation relies on both integration and utilization of explicit knowledge, but also the sufficient mining, calls, transformation, sharing and integration to tacit knowledge. And integration itself is a kind of creative fusion process, namely injecting creative thinking in the process of combination of each factor. Enterprises should integrate internal resource elements and technical knowledge, external resources elements and technical knowledge in order to form new integrated knowledge of enterprises. Specific measures is that an enterprise may strengthen integration ability of enterprise technology innovation through constructing knowledge integration platform and knowledge map and raising sufficient degree of the "T" talented person. 4.3 Improving application degree of knowledge and enhancing R&D competence of enterprise technology innovation Application of knowledge is the transformational process from theory to practice of knowledge in the enterprise technology innovation activities, when organization confronts with new problems, apply into practice to solve the problem, create value for the organization with the master of dominant or recessive knowledge in the organization. Essentially, knowledge innovation originates from knowledge application, is also a way of knowledge acquisition. Knowledge innovation achieve the knowledge both in volume increasement and quality improvement. To enterprise's R&D department, especially basic science of technology and thoughts, enterprises must establish special research and development institutions to complete the knowledge innovation; For application and practice closely related with knowledge innovation, enterprises should encourage all employees to compose innovative team together to achieve. An enterprise may, through the measures of establishing knowledge management database, creating favorable cultural environment of innovation knowledge and improving the investment of research and development and so on, strengthen enterprise R&D competence of technological innovation. 4.4 Improving knowledge sharing effect and enhancing enterprise learning ability of technology innovation Although any new ideas are produced by an independent personal, but the results obtained are relevant to its surroundings and others' assist, therefore, innovative theory and practice proved the importance of group cooperation. On the other hand, staffs who grasp the key technical or knowledge leave enterprises, which will not only influence the normal work of enterprises, but even make work paralyzed. Therefore, knowledge transfer and sharing are generally considered to be one of the key elements of knowledge management. Knowledge sharing can greatly enhance learning ability of the organization, drive the improvement of enterprise technology innovation capability. An enterprise may, through the measures of establishing study-oriented enterprise, establishing the enterprise internal knowledge nets and so on, strengthen learning ability of enterprise technology innovation. 5 Conclusion In the era of knowledge economy, enterprise technology innovation ability rely more and more on the development of knowledge management, knowledge management has become an important source for enterprises to promote technological innovation ability and obtain competitive advantage. Enterprise 509 M & D FORUM technology innovation, in essence, is the application of knowledge, and knowledge management has a guiding role to enterprise technology innovation ability, enterprises must learn to take knowledge management into the whole life cycle of technical innovation, make enterprises achieve long-term competitive advantage. 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