Assessing the Effect of Knowledge Management Practices on Organizational Performance in the Construction Industry in Ethiopia

Abstract

Purpose: This study focuses on the Ethiopian construction industry, a context that has not been extensively explored in knowledge management. It aims to assess the influence of knowledge and knowledge management practices on organizational performance, assess factors that affect organizational performance in the construction industry, identify barriers that impede knowledge management improvement in the Ethiopian construction industry, and propose a KM framework model suited to the Ethiopian construction industry context.

Study design/methodology/approach: The study employed a mixed-methods research approach with a convergent research design. A web-based questionnaire was created using Google Forms to collect quantitative data and distributed to 190 selected participants, including company owners, general managers, project managers, and senior professionals. 101 valid responses were received, resulting in a response rate of 53.2%. Among these valid responses, 80 were from male participants and 21 from female participants, all included in the data analysis.

Findings: The study indicated that knowledge management practices significantly affect organizational effectiveness, decision-making, innovation, and overall performance in Ethiopia's construction industry. The study identified several challenges, including inadequate knowledge-sharing practices among professionals, poor documentation and information storage systems, and weak mechanisms for learning and integrating new information and knowledge within the Ethiopian construction sector.

Originality/value: The research shows how knowledge is used and its connection to organizational performance within the industry. It emphasizes that organizational performance can be enhanced by adopting a knowledge management framework designed for the Ethiopian construction sector. Additionally, this study is the first to explore the effects of knowledge management practices on organizational performance at the organizational level in the Ethiopian construction industry.