Intervention of Organizational Culture in Achieving Competitive Advantage through Knowledge Management in Malaysian Construction Companies
Wiwied Virgiyanti1, Muhammad Asim Tufail2, Abu Hassan Abu Bakar3

1Wiwied Virgiyantia, School of Computing, College of Arts & Sciences, Universiti Utara Malaysia, Sintok, Kedah, Malaysia.

2Muhammad Asim Tufail, National Golf Academy, Universiti Utara Malaysia, Sintok, Kedah, Malaysia.

3Abu Hassan Abu Bakar, School of Housing, Building & Planning, Universiti Sains Malaysia,  Penang, Malaysia.

Manuscript received on 05 June 2019 | Revised Manuscript received on 12 June 2019 | Manuscript Published on 19 June 2019 | PP: 204-214 | Volume-8 Issue-8S June 2019 | Retrieval Number: H10340688S19/19©BEIESP

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Abstract: The demands of modern market have led construction companies to implement a competitive strategy that represents a new business approach, which should be concentrated on the effective use of all usable resources, capacities and capabilities. Knowledge has been considered as an organization’s strategic resource and as such, it needs to be managed to promote the competitive performance. For enterprises to be successful, they must exploit methodically their knowledge assets since these have an enabling role to play in the formulation of winning strategies, the organization’s mission, vision, and objectives where the knowledge management strategy should then be aligned. While addressing the organization strategy, competitive advantage is a decisive outcome. This is because of the acceptance that learning processes associated with knowledge management are instrumental in strengthening organizations’ competitive position and maintaining their sustainability. However, in the knowledge management process, individual efforts are often seen to clash with organizational culture, because it consists of the basic, taken-for-granted assumptions and deep patterns of meaning shared through organizational participation as well as the manifestation of these assumptions. Thus, this study investigates the relationship between knowledge management processes, organizational culture, and competitive advantage, by investigating the relationships between those factors in construction companies in Malaysia. Its main objective is to empirically investigate the mediating effect of organizational culture on the relationship between knowledge management and competitive advantage. Using simple random sampling, 84 CIDB Malaysia’s Grade-7 (G7) construction companies were sampled from 4,462 of total population from West and East Malaysia. The sample size was justified with Post-Hoc Power Analysis using G*Power to calculate the appropriateness of sample size. The research instruments used were the Knowledge Management Assessment Instrument (KMAI) by Lawson (2003), Organizational Culture Assessment Instrument (OCAI) by Cameron and Quinn (2006), and Competitive Advantage instrument by Byrd and Turner (2001). The main data analysis was performed using structural equation modelling (SEM) – partial least squares (PLS). The findings indicate that organizational culture partially mediates the relationship between knowledge management processes and competitive advantage.

Keywords: Knowledge Management Processes, Organizational Culture, Competitive Advantage, Construction Companies.
Scope of the Article: Knowledge Modelling, Integration, Transformation, and Management