Abstract
As an innovation form and a new target of organizational, virtual organization shows its great advantages and vitalities in the network economy increasingly. It can not only enhance the core competitiveness of organization effectively, but also protect the implementation of the core competitiveness strategy in organization forcefully. This paper mainly discusses the inner relation between knowledge management and virtual organization and puts forward the key elements and the process of knowledge innovation system and construction in virtual organization. In order to enrich the virtual organization's and knowledge management's innovation in the theory and method, this paper attempt to help organization promote its innovation and knowledge innovation effectively, thereby enhance organization's international competitiveness.
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