On value-creating of knowledge capital: Theoretical model and case study

The firm's profit is up to the market demand curve and the cost curve, which is affected by all kinds of knowledge capital that are employed by the firm, including technology capital, organization capital and market capital. It is demonstrated by a model that all kinds of knowledge capital depend on one another in value creation, and the firm's profit will be maximal in case that the production scale based on organization capital and the market size based on market capital match well. A case implies that the firm's competitive advantage will be lost even if one kind of knowledge capital is insufficient, and confirms the conclusion derived from the model.