Project-Based A/E/C Firms’ Knowledge Management Capability and Market Development Performance: Does Firm Size Matter

Abstract

Project-based architecture, engineering, and construction (A/E/C) firms’ survival depends largely on their market development performance. Given the knowledge-intensive nature of their offerings, A/E/C firms that can develop and leverage their knowledge bases are likely to enjoy superior market positions. Based on empirical data collected from 108 A/E/C firms in Vietnam, this study investigated the effect of A/E/C firms’ knowledge-management capability (KMC) on their market development performance, and the moderating role of firm size in this relationship. The results revealed that A/E/C firms’ KMC positively affects their market development performance, and this positive effect is stronger in small/medium-sized A/E/C firms than in large firms. These findings provide empirical evidence for small/medium-sized A/E/C firms to invest in their knowledge-management infrastructure (e.g., organizational values/norms, policies/procedures, employee development, and information infrastructure) and processes (e.g., socialization, externalization, combination, and internalization) to secure superior market positions. Theoretically, this research broadens and deepens understanding of the link between KMC and organizational performance (i.e., market development performance) and the contingent contextual factors (i.e., firm size) in the project-based construction industry.