Identification of knowledge assets in construction projects and their impact on project performance
| DOI | https://doi.org/10.1108/JIC-04-2020-0135 |
| Published date | 09 December 2020 |
| Date | 09 December 2020 |
| Pages | 558-587 |
| Subject Matter | Information & knowledge management,Knowledge management,HR & organizational behaviour,Organizational structure/dynamics,Accounting & finance,Accounting/accountancy,Behavioural accounting |
| Author | Harish Kumar Singla,Abhishek Shrivas,Ashu Sharma |
Identification of knowledge assets
in construction projects and their
impact on project performance
Harish Kumar Singla
School of General Management,
National Institute of Construction Management and Research, Pune, India
Abhishek Shrivas
School of Construction Management,
National Institute of Construction Management and Research, Pune, India, and
Ashu Sharma
School of Business Management, Narsee Monjee Institute of Management Studies,
Mumbai, India
Abstract
Purpose –The previous research ers have identified human cap ital, relational capital an d structural capital
as knowledge assets in knowledge-driven organizations. The current study is an attempt to identify and
validate the knowledg e assets in construction pr ojects. The study also aims to u nderstand the interrel ation of
these knowledge assets and their impact on project performance through the development of a
conceptual model.
Design/methodology/approach –The study is divided into t hree phases. In phase I, the constructs of
“knowledge assets”and “project performance”in construction projects are identified using the
exploratory factor ana lysis. In phase II, thes e constructs are valida ted using confirmator y factor
analysis. Two separat e surveys are conducte d for phase I and phase II, r espectively. In phas e III, the
authors develop two con ceptual models based on the literature revi ew and two construction project cases
in India. The models exami ne the inter-relatio nship of knowledge asse ts and measures their imp act on
project performance . The models are empirically tested using the responses of the second sur vey through
a structural equatio n model.
Findings –The study extracts four knowledge asset constructs and one performance construct whichare
named human capital, str uctural capital, rela tional capital, huma n capital capacity buil ding process and
project performanc e, respectively. The s tudy finds that both th e conceptual models a re statistically
excellent fit. The resul ts of the models suggest that relational capita l and structural capital have a direct
positive impact on proje ct performance, where as human capital has an indi rect effect on project
performance mediate d through relationa l capital, structura l capital and human cap ital capacity buildi ng
process.
Research limitations/implications –The items for knowledge asset constructs and measurement of
project performance are moderated by experts, working in construction projects in India, hence the process
may contain subjective bias. Further, two construction project cases were selected by authors in the study that
originate from India.
Practical implications –The study has implications for the project executors (contractors) as well as for
project owners. The contractors must maintain healthy relations with all the stakeholders in a project like a
client, suppliers, architects, etc. They must develop systems that are people-friendly to avoid the problems of
time and cost overruns in projects. The owners must also maintain healthy relations. This can result in a win-
win situation for both parties and can lead to superior project performance.
Originality/value –The study develops and empirically tests two conceptual models that explain the
interrelations of knowledge assets and how it benefits the construction project performance in India. Therefore,
JIC
23,3
558
The authors express sincere thanks to all the respondents for sharing their valuable time and providing
significant insights. The authors would like to show their gratitude toward the two organizations that
have shared their useful insights to be a part of the case study. The authors sincerely appreciate the
insightful and constructive comments and suggestions provided by all the reviewers. We believe that
these comments and suggestions have greatly strengthened the paper.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1469-1930.htm
Received 29 April 2020
Revised 14 July 2020
21 August 2020
3 October 2020
Accepted 23 November 2020
Journal of Intellectual Capital
Vol. 23 No. 3, 2022
pp. 558-587
© Emerald Publishing Limited
1469-1930
DOI 10.1108/JIC-04-2020-0135
the generalization of the results is difficult; however, the results can be replicated in projects with similar
settings.
Keywords Construction, Project performance, Knowledge assets, Human capital, Relational capital,
Structural capital
Paper type Research paper
1. Introduction
The project management literature often reports that projects are not delivered on time and
within budget (Handzic and Durmic, 2015). A lot of empirical evidence has been generated to
understand the factors that cause time and cost overruns in construction projects (Flyvbjerg
et al., 2002,2003,2004;Jha and Devaya, 2008;Frimpong et al., 2003;Doloi et al., 2011;
Sambasivan and Soon, 2007;Shehu et al., 2014;Wang et al., 2018). However, the issues are not
fully resolved and time and cost overruns continue to be a major problem affecting the project
implementation globally (Edison and Singla, 2020).
The resources which are valuable, rare, inimitable and nonreplaceable, they establish a
source of sustainable competitive advantage (Ferreira and Fernandes, 2017). As a result,
these resources can help improve project performance through the management of time and
cost overrun. The researchers have referred to these resources as “knowledge assets”or “the
firm’s intellectual capital”(Mart
ın-de-Castro et al., 2011;Youndt et al., 2004). They have
broadly classified firms’intellectual capital (IC) into three components of IC, i.e. human capital
(HC, inherent in individuals), structural or organizational capital (SC, structures, systems,
routines, databases) and relational capital (RC, networks and relationships) or customer
capital (Bontis et al., 2015;Nimtrakoon, 2015;UlRehman et al., 2011;Wang et al., 2014).
Sambamurthy and Zmud (2014),Handzic and Durmic (2015),Handzic et al. (2016a,b);Turner
et al. (2015) have provided substantial evidence that these knowledge assets are critical for
project performance in information and technology (IT) projects. Yet, in the literature, the
knowledge assets in the construction industry have been analyzed from an aggregate
perspective at organizations’level, thereby overlooking the project level heterogeneity.
It is important to note that several studies have found that knowledge assets are vital for
the success of an organization (Edvinsson and Malone, 1997;Andreou et al., 2007;Bontis and
Fitz-enz, 2002;Chen et al., 2004;Swart, 2006;Wang and Chang, 2005;Yeong and Lim, 2010;
Duodu and Rowlinson, 2019). Buszko and Mroziewski (2009),Duodu and Rowlinson (2019),
Lin et al. (2018),Loforte Ribeiro (2009), and Singla (2020) found that these knowledge assets
are critical for the success of construction organizations. Loforte Ribeiro (2009) in a study on
construction organizations, through three case studies, suggested that top management must
formally recognize the strategic importance of knowledge assets in the company. Yet, despite
the growing importance of knowledge assets at both organizational and project levels, the
efforts concerning either measuring the knowledge assets or establishing their linkages with
project performance are not examined thoroughly in the construction industry.
The knowledge of these assets and their interlinkages with project performance can help
project managers develop a competitive advantage and improve the performance. Therefore,
in response to the current lack of empirical evidence at the project level, specifically in
construction projects, the study’s aims are to identify the unique knowledge assets in
construction projects; examine their validity and reliability. The study also aims to develop a
conceptual model displaying the interrelation among the different construction project
knowledge assets and their impact on project performance.
Specifically, the study addresses the following issues. First, the authors identify the
unique knowledge assets in construction projects. Second, authors examine the interlinkages
among these knowledge assets and third, how these knowledge assets affect the project
performance in the construction sector. These issues are dealt in three phases. In phase I, the
Knowledge
assets in
construction
projects
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