Knowledge assimilation and exploitation

Purpose – The purpose of this paper is to explore the factors impacting corporate knowledge's assimilation and exploitation; to posit the relationship between assimilation and exploitation, and build up a research model to compare the differences of these relationships in companies with different ownership identities. Design/methodology/approach – Structure equation model. Findings – The paper finds that the function of communicational capability and social capital on knowledge's assimilation and exploitation is impacted by ownership identity. Practical implications – In China, persons making decisions on innovation strategy of knowledge should consider the ownership identity. Originality/value – The paper shows that the institutional factor indeed impacts knowledge transfer and innovation. Social capital and communicational capability can reduce the obstacles to knowledge's capture and diffusion, however, the institutional distance will change their function's direction and degree.