Enablers for Knowledge Management Implementation by Large Construction Organisations in Hong Kong

Abstract

Knowledge is one of the critical driving forces for business success. Knowledge management (KM) and its appropriate implementation help organisations find, select, organise, distribute and transfer vital business information. The effect of KM on an organisation’s outcome measures has been widely documented; in particular, its contribution to the development of innovation culture. In the construction industry, the need for KM is widely acknowledged, as the demand for innovation and improved business performance requires effective deployment and utilisation of project-based knowledge. For construction contracting organisations, KM is now recognised as a core business concern because intellectual assets have a vital role to play in improving business effectiveness and creating and gaining sustainable competitive advantage. In light of the above, this research study identifies the enabling factors (i.e., enablers) needed for effective KM implementation in construction contracting organisations. It reviews and presents the seven most widely reported enablers, and empirically explores their relative enabling power and dependence in the context of KM being practised by large construction organisations operating in Hong Kong. The seven enablers under investigation are 1) leadership, 2) organisational culture, 3) strategies, 4) technology, 5) people, 6) process and activities and 7) innovation. Initially, a combination of focus groups and the Interpretive Structural Modelling (ISM) technique was adopted to investigate the interdependence of the enablers and develop and empirically test a conceptual model connecting each uniquely defined and operationalised enabler to the other six enablers. The operationalised definitions of the enablers were subsequently used to develop a structured questionnaire, which was administered to local large construction contractors. Data were collected on the views of construction professionals on issues related to each enabler. Based on a total of 120 valid responses, this study employs structural equation modelling analysis to verify the conceptual model derived using the ISM technique. The best-fit path model reveals the empirically supported interrelations among the enablers. Finally, the best-fit path model was qualitatively validated using a qualitative case study. A pattern-matching technique was applied to verify the findings and generalise to actual practices (as reported by five construction organisations), taking into consideration the local professional expertise of the people involved and the reality of the context under investigation. The quantitative and qualitative analyses not only provide a relationship among various enablers, but determine the extent of the relationship. It is found that the leadership and technology enablers have the highest and lowest driving power among all seven enablers, respectively. The leadership enabler, in particular, simultaneously leads four enablers: organisational culture, strategies, process and activities and innovation. Many of the hypothesised relationships among enablers proved to be statistically significant. However, the hypothesised influence of organisational culture on people was, surprisingly, statistically insignificant. This could be because of the project-based, transient nature of the industry, where relationships between staff and their respective organisations are more fluid, transient and opaque than in many other industrial sectors. The study highlights the critical role played by leadership in directly and indirectly (through strategies) influencing organisational culture. In line with previous studies, this study reveals the need for managerial actions to maintain staff positive attitudes towards knowledge sharing. This study also sheds light on the relationship between people and technology, where the latter proved to have the highest level of dependence on other enablers. This study enhances our current understanding of the interrelationships among various KM enablers. This will ultimately provide Hong Kong-based construction contracting organisations with both focus and direction to steer and control their tangible and intangible knowledge assets to remain resilient in the face of a fluctuating and highly competitive market and maintain or sustain their performance.