Abstract Intangible resources are the sources of competitive advantage in the knowledge economy. Knowledge management (KM) is popular within the businesses. With increasing investment in KM projects, companies are looking forward to find better ways to obtain the competitive advantage. KM literature also highlights the fact that the achievement of sustained competitive advantage depends on its knowledge-based resources. Even though many people believe that technology is the main driving force of transformation. In fact, technology merely brings superficial change or allows people to perform routine jobs fasters. In this sense, the objective of research on knowledge management should not overlook the fact that an enterprise is operated by many official and unofficial units, which are formed by people. The discussion on knowledge management should be focused on people as the subject. This thesis restudy Nonaka¡¦s SECI model of knowledge creation and its constraints, we revisit the fundamental points of tacit knowledge in the model and provide a critical review on the role for business organization. First, in the discussion of knowledge creation, this study argues that the capabilitie of knowledge creating is the most important source for firms to get competitive advantage. Based on the literature on KM, we thought the competitive advantages come from continue improvement in business, and the ideas of improve are from Km of both organization and individual. So, the total KM is complete explain for getting competitive advantage than only knowledge creation. Secondly, we review the situation of the SECI model fit the business current KM project, and develop a framework to assess the relationship of KM activities between organization and individual. Focuses on verifying the relationship between the organization and individual knowledge management. The framework uses a set of key KM activities by IPO model as lead indicators within KM flow. To prevent the discussion of ¡§knowledge¡¨ limited to ¡§technology¡¨, this study is based on the objective and subjective opinions to discuss the shift context of the tacit and explicit knowledge. The formation of the knowledge cycle based on this context, the generation, transformation and shift of knowledge from the knowledge cycle. The organizational KM activities include acquiring, re-engineering and extending. The personal KM activities include creating, application and sharing. The results show that organizational knowledge management has positive correlation with individual knowledge management, but the knowledge type and focus of the knowledge management differ. Therefore, the key of successful knowledge transformation is to keep the individual and organizational goal consistent. The organizational and individual knowledge management should both focus on improving the work. The scenario interference results show that employees¡¦ perception of organizational culture has significant interference effect on work performance due to knowledge management. During the knowledge management promotion process, the organizational culture perception is reflected on the mental perception and behaviors of the employees, thus, the context performance and task performance. As verified by research hypotheses, higher ¡§perception of innovative culture¡¨ leads to more obvious interference to ¡§individual creation and sharing of knowledge¡¨ and ¡§task and context performance¡¨. Higher ¡§perception of supportive culture¡¨ leads to more obvious interference to ¡§individual utilization and sharing of knowledge¡¨ and ¡§task and context performance¡¨. On the other hand, though the direct effects of ¡§growth need strength¡¨ on ¡§Job performance¡¨ has been supported, it shows that its reciprocal interaction with ¡§individual creation and sharing of knowledge¡¨ has no effect on ¡§task and context performance¡¨.