Strategic knowledge capabilities in Taiwan's semiconductor industry

Abstract

According to knowledge-based view, knowledge may be the sources of superior performance. However, up to the present, literatures related to knowledge management still lack empirical study at strategic level. This study tries to fill this lacuna by categorising the configurations of knowledge capabilities into Knowledge capabilities groups (KCGs) of 51 firms in Taiwan's semiconductor industry during 1995?2004 based upon four knowledge capabilities and their six variables with two steps cluster analysis. The objectives of this research are: firstly, classifying the major configurations of knowledge capabilities. Secondly, studying the relationship between Knowledge Capabilities Groups (KCGs) and firms' performances. Finally, researching the transformations of knowledge capabilities in Taiwan's semiconductor industry. The results of cluster analysis classify Taiwan's semiconductor firms into five KCGs: exploiter, overall learner, external learner, hunger and innovator in which KCG4 (hunger) is the worst performer and KSG5 (innovator) is the best performer. Additionally, although KSG4 is the largest group, firms in this group will transform their configurations of knowledge capabilities once they have sufficient resources owing to its poorest performance. KCG3 (external learner) is the most stable group and KCG5 (innovator) has the potential to become major KCG in the future in Taiwan's semiconductor industry. In addition to that, the configuration of knowledge capabilities is hard to change, and it only changes when the firm's performance is below the satisfactory level of its management team.