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Enterprises are in the knowledge based economic environment, and with the rapid growth of knowledge and information they will face a higher level competition on knowledge. The principles were brought forward to define and implement the knowledge value chain model and management. By using the Balanced Scorecard model and Entropy weight, a system was established to evaluate the knowledge value chain management performance in enterprises. Conclusion can be drawn as follows: knowledge value chain of enterprise is customer demand orientated, it is the link structure composed of the processes of knowledge accumulation and innovation, knowledge value chain management performance could be implemented with the reference to balanced scorecard which provides more specific direction and evaluation criteria, and entropy weight method is scientific and effective for the performance evaluation.