ABSTRACT
A “storm eye” model for firms’ knowledge creation was constructed from SECI knowledge spiral, and then its system dynamic expression, training, and simulation was carried out. The simulation results showed that firms could effectively absorb external knowledge and conduct an internal knowledge conversion cycle in a good environment, which would result in a huge knowledge creation storm. However, the knowledge creation storm might weaken or even die out when the environment was deteriorated, or the stock of firm’s knowledge declined, and or firm’s knowledge transformation ability dropped. The results implied that a knowledge creation company could maintain excellence only by improving its ability of knowledge absorption and conversion and preventing its knowledge from loss.
