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Explores the connection between knowledge management (KM) and process innovation (PI). Although these are popular themes in the literature on management innovation, there is not much discussions of these issues. On the one hand, KM has been treated as a managerial fad that is mainly focused on knowledge generation, dissemination, and utilization. Moreover, the advocates of KM seem to be concerned with building knowledge management systems (KMS). On the other hand, PI is regarded as an efficiency‐oriented process redesign and re‐engineering (or BPR), which seems to be nothing to do with KM. However, the case study of Samsung SDI shows that in the real world KM is deeply linked with PI. For illustrating the KM strategy of Samsung SDI, uses the term “PI‐based KM”. Sheds light on two points: the features of process knowledge can be studied in the sense that knowledge associated with process is dubbed “process knowledge”; and socio‐cultural features of KM should be illustrated in terms of knowledge transformation path in the information space.