Within the different Chinese organizations, many of the entrepreneurs believe that only those organizations have higher competitiveness that possess a greater innovative and technological capacity. Thus, referring to the same statement, the organizations established in the countries with emerging economies seem to have a disadvantageous position in the context of competitiveness at a global market place as these greatly lack innovative and technological capacity. China is also one of the strongest emerging economies and the organizations here highly experience challenges and difficulties while attempting to acquire modern and / or advanced technological and business knowledge from western countries (Polanyi 2012). These organizations of mainland China are found to engage in the process of knowledge management with the western countries primarily because of three key reasons. Firstly because there are really very few industrial clusters within the country of China where the organizations with knowledge intensity can operate in close proximity geographically, if compared to that of developed countries. The reason is that the organizations of China, like that of other emerging economy countries, have disadvantage in access to knowledge workers and knowledge spillovers. Secondly, there are very few well – developed networks of distribution and manufacturing in the country of China with the utilization of which the organizations can rely on the attained technological and business knowledge for both the commercial and production application at global level. Finally, the organizations in China have to face limited legal protection over their intellectual property that eventually make the transfer of advanced technological knowledge from foreign investors difficult.
With time, the attention of the organizations in China has significantly shifted towards the acquiring and implementation of the knowledge management process so as to explore and gain a better understanding of the external sources of technological and business knowledge. These organizations seek to develop social and cultural contexts which facilitate both the dissemination and transfer of adopted technology in between the different subunits in an organization. With time, the organizations are found to become well aware of the significance of the process of trust and knowledge sharing, while avoiding the risks associated with the same. The business knowledge shared with and acquired from the western countries is being transformed into the strategic values and methods to develop highest quality and unique commercial services and / or products. Thus, the organizations of China does not seem to discontinue this process of trust and knowledge sharing soon.