On the basis of a rich panel data set of large- and medium-sized Chinese manufacturing enterprises, we observe that different types of firms (i.e., state-owned enterprises [SOEs], foreign-funded ownership [FFO] of firms, Hong Kong-Macau-Taiwanese [HMT] companies and privately-owned firms) exploit different stages of the innovation – productivity chain depending on the extent of market concentration. By applying a modified CDM model, this study reveals that SOEs tend to be more active in making innovative decisions and pursuing innovative investments but are less efficient in terms of innovation output and labour productivity, whereas FFO firms have relatively high labour productivity but are less active in the first three stages of the innovation – productivity chain. Market competition favours SOEs in the production of additional innovation products. Foreign firms are efficient in labour productivity if they are operating in a concentrated market. By using the metaphor of DNA, this study explains the heterogeneity among these different forms of ownership and generates several managerial implications.

This chapter incorporates the relevance of tacit knowledge and highlights some major barriers to knowledge sharing. Knowledge transfer is action through which; information, skills, expertise and experience is exchanged among people in an organization and it is a valuable and tangible asset for creating sustainability, performance and competitive advantage. From what is currently known, knowledge sharing activities occur generally with the support of knowledge systems designed by the board and knowledge managers. It is suggested that technology is one of the tools that support knowledge sharing, though other factors exist, such as organizational culture, trust, leadership and management philosophy, incentives and internal control systems. In this study, the researchers explore possible knowledge sharing opportunities and associated barriers, starting from top management to employees. The main purpose of this chapter is to look at how tacit knowledge affects organizational success. The chapter also covers ways to promote knowledge transfer in order to improve organizational performance and innovation. The discussion elaborated on the significance of tacit knowledge in a way that previous literature does not. It is emphasized that, from a resource-based view, businesses gain competitive advantage when they value and retain their existing tacit knowledge, as explicit knowledge is already known to everyone. According to the study, important variables such as corporate culture, individual employees, technology, and organizational internal factors are potential hurdles that must be examined to minimize the impact on organizational learning.