The Empirical Research on the Correlation of Knowledge Transformation and Core Competence in China´s Enterprises

In order to reveal the micro-mechanism of enterprise-related knowledge management and cultivate the core competencies of the enterprise´s management activity, the structure equation model is used in this paper. By research assumption, the decomposition of index system, model design, model confirmation and confirmation analysis, the SEM can effectively reveal the correlation between knowledge transformation and core competence in Chinese enterprises. For illustration, the collected copies are 292 enterprises, in which 255 copies are valid. The empirical results show that the minimum value among the 28 load factors is 0.52, the minimum T value is 2.02. Therefore, the model is well fitted and there´s no need to be corrected. The empirical research has revealed that the knowledge management activities in China´s enterprise have obvious incentive effect on the formation of core competence.