Knowledge Management in Developing Economies
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Knowledge Management in Developing Economies

A Cross-Cultural and Institutional Approach

Edited by Kate Hutchings and Kavoos Mohannak

This important book brings together a set of original key contributions to knowledge management in developing economies. It encompasses a wide range of countries throughout Africa, Asia, the Middle East, and Latin America as well as the transition economies of the former socialist countries in Eastern Europe.
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Chapter 6: Knowledge Management Among Taiwanese High-tech Industries and SMEs

Te Fu Chen


Te Fu Chen INTRODUCTION In the past ten years, the USA has accumulated outstanding global talents to create and build uncounted knowledge, and successfully transfer it into commodity. The success of the USA has ushered the twenty-first century into an era of knowledge economy. This has had a great impact on Taiwanese hightech industries as they have been cooperating with the US high-tech industries over a long period; thus Taiwanese firms see knowledge as a maintainable and sustainable competitive advantage. They have started to implement correct and effective development strategies, through knowledge management (KM) to bring continuous innovation and learning into organisational structures. KM has been developed in high-tech industries in Taiwan for a long period. For example, the Acer group and Taiwan Semiconductor Manufacturing Company have moved KM into the stage of knowledge transfer and diffusion (Acer, 2006; Taiwan Semiconductor Manufacturing Company Limited, 2006). According to the survey conducted by the International Data Centre Taiwan (2006), Taiwanese firms highly value KM as 96 per cent of firms see KM as an important management tool. Most firms believe that ‘knowledge’ constitutes 50 per cent of the value chain, which consists of research and development (R&D), design, manufacturing, marketing and after-sales service. However, only 15 per cent of firms identified the value-production of knowledge to reach a decent level. This indicates that some firms, especially small and medium enterprises (SMEs), understand the importance of KM but do not fully grasp the concept of implementation. This situation is more applicable to...

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