Within the concept of knowledge management, the organizations have become well aware of the significance of competence – based view wherein the organizations must have certain kind of knowledge and resources to bring about unique and most innovative products and / or services. The whole process of knowledge management mainly within the mainland Chinese organizations are emphasized more one the development of key competitiveness within a volatile and unstable market place. Organizations seek to develop their competitive advantage in a sustainable manner by acquiring and / or creating significant strategic resources. The researchers and practitioners like Conner and Prahalad (2012) argued that the knowledge is basically a basis of resource based view and is one of the critical resources within an organization today. Similarly, McEvily, Das, and McCabe (2010) suggested that the sharing of knowledge in between organizations significantly provide each of the organizations with the capability to prevent competence substitution.
It is evident that different practitioners and researchers have been trying to explore the extent to which the concept of knowledge management has been successful and effective for the mainland Chinese companies. Different organizations belonging to different industries highly differ in their variation and selection of resources, thus require knowledge management practices to strongly establish in the highly competitive global market place. This different in the resources have led the organizations to adopt differing methods and strategies to develop, source, and use business knowledge under different market environments and locations. Knowledge is undoubtedly an intangible resource which is costly to imitate and valuable for the rival organizations, thus the whole process of commercializing and developing knowledge has emerged as one of the key aspects of attaining competitive advantage not just in a national market place but in the highly competitive and diverse global market.