Abstract: Knowledge innovation may drive organizational evolution and revolution.In terms of new knowledge, there are two drives for organizational evolution and change, one is internal innovativeness, and the other is marketing change.Existing literature, however, mainly focuses on either drive to explore firm growth.This paper argues that the evolution of organizational knowledge is within an open system involving firm and environmental context.First, this paper establishes the nonlinear model of organizational knowledge system (OKS), and discusses the evolution of OKS.Second, based on the above model, it is illust rated that organizational evolution and change facilitating firm sustained growth may resulted from the general path of organizational knowledge innovation.Last, a simulation is further discussed.

Key words: knowledge innovation, firm growth, modeling