The country of China is among one of the strongest economy in today’s highly competitive world and has been working hard to come up as a more knowledge – based society and economy (Szulanski 2009). China has been attempting to build and develop trust with western countries through knowledge sharing that is also termed as KM or Knowledge Management. With time, the same has become increasingly important not just for China but for other countries as well. Knowledge management primarily involves the use and timely transfer of the business knowledge to attain a competitive advantage within an industry. However, effective knowledge management is also associated with certain formidable obstacles, despite of its significant advantages in both science and business activities (Lee 2009). The concerned paper addresses the topic of knowledge management in the context of trust and knowledge sharing in between china and western countries. The research will be utilizing the longitudinal case studies, and semi – structured interviews to gain a better understanding of the ways through which the companies in country of China have been managing the business knowledge for more than a decade. Knowledge management is found to be the key driver of global competitiveness and is somewhere constrained and distinctive in the context of technological limitations. There are some other factors that have been influencing the same in either positive or negative manner.
The term knowledge, by definition, is a critical resource within an organization that enhances the extent to which the organizations can attain competitive advantage over their rival organizations in a particular industry. Referring to the definition, the concept of knowledge management can be perceived as the identification of the strategic values of each of the different stocks of knowledge within an organization, however in different contexts.