As the constant innovation of science and technology, and the continual internationalization of market, the environment of business operation has become increasingly competitive. An enterprise must make use of its own tangible capitals to conduct the innovation, revamping and renewal of products, processes, equipments, techniques and procedures. All of these activities should be achieved by means of capital expenditure project.
Knowledge is the most important resource of business in 21th century. However, it must be conducted through capital input to convert, utilize and implement the knowledge in the whole operation and process of a business. Through transforming knowledge to action, a business can create its core value and enable itself to grasp competitive edge, and realize corporate vision. China Steel Corporation is the subject of this research. CSC is attributed to heavy industry with the characteristics of capital and technology intensive, and long-term investment. Its investment project is indeed a highly knowledge intensive process. Hence, it is an emergent issue for a business to integrate the practice of knowledge management and investment projects so that knowledge asset can assist a business to allocate and utilize its own limited resource adequately, avoid wrong investment, and develop its best performance.
The goal of this research is to examine the theoretical application on practice focusing on the integration of capital expenditure and knowledge management, of a business, to pursue its optimal investment performance. We try to find out the nature and characteristics, activities of knowledge management, and the factors that enable knowledge management and their current status. Then investigate the practical status of a business utilizing knowledge to solve its problems in the process of capital expenditure planning and decision-making. Finally, we set the results of our interviews and investigations as the basis of our empirical analysis, and our conclusions as listed below:
1. the core aspects of investing in knowledge nature are the innovation of equipments, technology and materials, as well as the high platform assessment decision-making capability.
2. knowledge creation capability is the competitive edge for CSC’s investment projects.
3. knowledge integration is the key mechanism for a business to form its decision-making of investment.
4. the emphasis on environmental discipline and security of IT system will constrain the activities of knowledge management.
5. the accumulative structure differs in different divisions
6. the efficiency of knowledge management will be reduced if the guiding integration mechanism is insignificant.
7. the most helpful factors to knowledge market: mediator and market reward.
8. knowledge management will be the core task of business investment.