Abstract: Using the biological industry in part of China as the investigation target, a large-sample reseach is conducted. A system framework of knowledge management is obtained by literature review and statistical study. Then three points are proposed. First, knowledge management is a system process, it includes knowledge acquiring, applying, transferring, and protecting. Second, knowledge management is existed under organizational condition, so organization design factors, such as strategy, structure etc., place the great emphasis on the performance of knowledge management. The knowledge management can effectively exalt the firm performance.

Key words: knowledge management, organization design, system management