A Diagnostic Model for Assessing the Knowledge Management Practices of Construction Firms

Abstract

Knowledge management is rapidly becoming a key organizational capability for creating competitive advantage in the construction industry. The emergence of knowledge management as a key organizational capability for creating competitive advantage poses enormous challenges to executives of construction firms. This paper proposes a model for benchmarking the knowledge management practices of construction firms that can guide and assist construction business executives to meet these challenges. The proposed model incorporates benchmarking and knowledge management concepts with Importance-Performance Analysis (IPA) and Comparative Performance Analysis (CPA) maps. The IPA and CPA maps are visual management tools that have been commonly used for continuous improvements in processes and the performance of firms. Yet they have not been used in the construction management literature or for evaluating the knowledge management practices. The proposed model can be used by construction firms as an internal performance measurement tool to evaluate their knowledge management practices. It can provide powerful diagnostic information to construction business executives of construction firms in order to evaluate their firm's knowledge management practices, identify their firm's comparative advantages and disadvantages with regard to each knowledge management practice, and set priorities for managerial actions related to knowledge management practices that need improvement. A real-world case study was conducted by administering a survey to 105 construction firms operating in Turkey and is presented to illustrate the implementation and utility of the proposed model.