Unveiling the role of knowledge management capabilities in strategic emergency response: insights from the impact of COVID-19 on China’s new economy firms

Abstract

Purpose This paper aims to unveil the importance of knowledge management on a firm’s strategic emergency response during the great negative shock from global public health threats. Through analyzing how representative firms in China’s new economy industries dealt with the COVID-19 pandemic before, during and after the crisis, the significant problems confronted by these firms are pointed out, and the important role knowledge management capabilities played in solving these problems is proven. Design/methodology/approach The open data of listed companies regarding the important role knowledge management played in firms’ strategic emergency response during the COVID-19 pandemic are qualitatively analyzed. Based on theoretical sampling, this paper selects representative samples of enterprises and analyzes the positive response measures they took after being hit by this public health event to gain qualitative insight into the importance of knowledge management capabilities in strategic emergency response. Findings Three aspects of the important role of knowledge management capabilities in a firm’s strategic emergency response during the COVID-19 pandemic are introduced: before the crisis, firms should strengthen the acquisition, sharing and integration of knowledge so that they can intensify their monitoring for uncertain risks; during the crisis, firms should boost the transmission, transformation and diffusion of knowledge to improve emergency cooperation; and after the crisis, companies should reinforce knowledge evaluation, creation and application to enhance “immunity” in similar emergencies. Research limitations/implications This paper has important implications for bolstering strategic emergency management practice and knowledge management capability among firms. Future research must focus on the following two aspects for further investigation: the dynamic relationship between firm knowledge management capability and strategic emergency response ability; and the collaboration system between firm knowledge management and strategic emergency response behaviors. Originality/value This paper discusses the important role knowledge management capabilities play in firms’ strategic emergency responses based on insights gained from the significant changes that the COVID-19 pandemic caused to representative Chinese new economy firms. By analyzing the three stages of before, during and after the emergency, this paper proposes the exact efforts that new economy companies should make in improving knowledge management capability.