The purpose of this thesis is to report the results of an exploratory study that conceptualizes and develops a valid model for two key dimensions of KM: knowledge sharing and innovation, at different levels of organizations with organizational culture impacts on people, process and technology, in the context of China. Data were collected from Chinese service sector in business consulting companies. Using focus group, elite interview, in-depth interview and cases studies based on KM and KM culture models from literature. The research models were examined by a preliminary and a pilot researches as validated then applied to a main study followed by a confirmatory research. Five cases are included. Results indicate that the current Chinese KM practice in KM has its own characteristics and impacts from Chinese culture, which was not all in accordance with previous studies and survey results. Reasons of the result are explored. Findings were confirmed with a confirmatory study and the model developed satisfies the criteria for reliability and validity in KM studies. A KM Culture model is established. This study contributes to KM research by providing a set of valid and reliable research model and process while presenting results from Chinese business environment on knowledge sharing and innovating at different levels that are influenced by organizational culture.