Visualizing Evolution of Knowledge Management Capability in Construction Firms

Abstract

A firm, as a dynamic, evolving, and quasi-autonomous system of knowledge production and application, develops knowledge management capability (KMC) through strategic learning to sustain competitive advantages in a dynamic environment. Knowledge governance mechanisms and knowledge processes connect and interact with each other, thereby forming learning mechanisms that execute double-loop learning. This in turn drives the genesis and evolution of KMC to modify operating routines that contribute to the desired performance. This paper reports a study that was performed within a context of construction contractors, a type of project-based firm, which operates within the dynamic Hong Kong construction market. The writers used a multiple-case design to incorporate evidence from the literature and interviews, with the help of system dynamics modeling, to visualize the evolution of KMC. The writers’ paper demonstrates the feasibility of visualizing how a firm’s KMC correlates with its operating environment over time. The findings imply that knowledge management (KM) applications can be better planned and controlled through evaluation of KM performance over time from a capability perspective.