Effect of knowledge management on growth performance in construction industry

Purpose – The purpose of this paper is to examine the relationship between knowledge management and growth performance of construction companies. Design/methodology/approach – In total, 600 questionnaires were sent to selected individuals in grade G7 construction companies. A total of 110 completed questionnaires were returned and deemed usable. The collected data were processed and analysed by partial least-squares (PLS) path modelling with SmartPLS 2.0 software. This technique was selected because it is appropriate for exploratory studies, such as the current one, where hypothesised relationships between variables have not been tested. Findings – The findings show a positive relationship between knowledge management and growth performance in construction companies. The results of this study are valuable in establishing a valid and reliable survey instrument, especially for construction companies. Practical implications – The results of this study can be can be utilised as a basis for strategic choices by top management, to enable a company to grow. Right decisions are crucial to enable construction companies to remain competitive, and develop in a challenging business environment. Originality/value – The paper furthers understanding of how knowledge management influence growth performance in construction industry. This aspect has been little studied both in theoretical and empirical studies.