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The purpose of this article is to look for a systematic platform that can benefit knowledge creation within an organization.

This study uses personal interviews based on fieldwork and analysis from first and second hand data.

A new operational mechanism based on knowledge capitalism. Through dynamic allocation of internal shares and meritorious allocation of positions, one company can continually restructure itself to create more opportunities for its staff, so as to motivate its employees and promote the creation of knowledge to develop its core competence.

No one system is the best, but one can try to find the most suitable one. The paper presents a case study of a Chinese knowledge‐based firm in its initial period for rapid growth, noting that it may not be suitable for a large MNC.

Find a lever for each complicated systematic process of knowledge management, rather than focus on an individual factor.

This paper offers practical help to organizational administrators, especially for knowledge‐based firms. It reveals that innovation in operational mechanism is of importance for the motivation of employees to keep the vigour of enterprise.