Dynamic Effects of Management Support on Knowledge-Based Competitiveness in Construction Companies

Abstract

The construction industry faces challenges like project complexity, labor intensity, and dynamic changes, which demand effective knowledge management practices to attain competitiveness. Successful knowledge management implementation relies on management support, specifically budget allocations, to achieve knowledge-based competitiveness. This study aims to examine the dynamic effects of management support on competitiveness enhancement over time and suggest short- and long-term strategies for knowledge management practices. The study develops a system dynamics model comprising five key factors: knowledge storage, knowledge acquisition, knowledge dissemination, knowledge responsiveness, and knowledge utilization to simulate the effects of management support on knowledge management implementation and knowledge-based competitiveness over time. The simulation results reveal the fluctuations of the competitiveness scores through knowledge management implementation, which is decided by management. It is suggested that the efforts should be focused on improving the activities under the knowledge utilization and dissemination factors to raise the scores in a short period. To achieve sustainable knowledge-based competitiveness development, management must commit to enhancing human- and technology-related activities under the knowledge storage, acquisition, and responsiveness factors and provide adequate financial support to invest in knowledge management-related systems. Such activities as skill training, data warehouse systems, and stakeholder interconnection are crucial to maintaining knowledge management performance. This study provides valuable insights into the strategic planning of knowledge management practices through budget allocation from management to achieve long-term competitiveness.