Strategic knowledge management failures in small professional service firms in China

In this paper, we report and reflect on Knowledge Management (KM) projects conducted in two China-based, smaller-sized professional service firms. The authors acted as Action Researchers, assisting each firm extensively as it prepared for its implementation of an IT-based KMS. However, neither KMS implementation significantly improved knowledge transfer or work productivity. We analyze the project failures, noting the significance of specific strategic management deficiencies as well as inadequate employee involvement and incentives. The implications for the strategic management of knowledge and organizational change in China are considered.