Knowledge is power: toward a combined model of knowledge acquisition and knowledge application of enterprises

Purpose - This paper aims to theoretically investigate a knowledge management model from the combined perspective of knowledge acquisition and knowledge application and its effect on organizational performance. Design/methodology/approach - This study reviews prior research on knowledge acquisition and knowledge application, puts forward the concepts of “the extensiveness of knowledge acquisition” and “the concentration of knowledge application” and more importantly proposes an integrated model by combining these two dimensions. Four case examples of enterprises are subsequently described and analyzed to illustrate the sources of knowledge acquisition, the objects of knowledge application and their influences on organizational performance. Findings - Four knowledge management modes and their impacts are confirmed in this study. Specifically, the organization of the turbojet engine mode (high extensiveness of knowledge acquisition and high concentration of knowledge application) can achieve good performance. The pipeline mode (high extensiveness of knowledge acquisition and low concentration of knowledge application) is the second, which has limited influence on good organizational performance. Organizations with the flashlight mode (low extensiveness of knowledge acquisition and high concentration of knowledge application) can achieve limited performance under the appropriate environment. The candle mode (low extensiveness of knowledge acquisition and low concentration of knowledge application) is the worst, performance of which is poor due to the break of the knowledge chain. Practical implications - This paper holds that organizations should actively use the turbojet engine mode, adopt the pipeline mode and the flashlight mode cautiously, and avoid falling into the candle mode. Originality/value - To the best of the authors’ knowledge, this study is among the first to propose the concepts of “the extensiveness of knowledge acquisition” and “the concentration of knowledge application,” and provides a combined model for analyzing differences in organizational performance from the perspective of knowledge.