A Coevolutionary Journey of Strategic Knowledge Management Alignment: A Chinese Case

Although knowledge has emerged as the strategic resource of the firm in the increasingly turbulent and dynamic environment, it is underestimated how knowledge management (KM) contributes to sustained competitive advantage of the firm over time. Drawing upon a coevolutionary view of alignment, this study examines a strategic KM coevolutionary mechanism in which KM strategy, processes, and infrastructure dynamically align with the changing competitive strategy; in turn, the KM derived competitive advantage drives the firm to pursue a more superior position in its niche. To trace the coevolutionary mechanism, we conducted a case study in Li-Ning Company, which experiences 20 years’ development and has become a leading sports goods company in China. Two strategic transitions result in the corresponding changes of its KM strategy, KM processes and infrastructure. The cumulated knowledge helps the firm upgrade from an imitator to a prospector with balanced performance portfolio. Theoretical and managerial implications are discussed.