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Managing knowledge management in a

Project-based organisation

A study at A. Hak

MASTER THESIS

- Vincent Thole -

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Managing knowledge management in a

Project-based organisation

A study at A. Hak

Supervisor:

ing P.J. van der Spoel

Supervisors:

dr. W.M.C. van Wezel

dr. ir. N.R. Faber

University of Groningen

Faculty of business and economics

MSc Technology Management

By:

Vincent Thole

Student number:

1422286

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Management summary

In this master thesis, research has been conducted to the use of knowledge management in project-based organisations. The research objective is: “The objective of this research is to develop a knowledge management model for the management of Hak, which can contribute to the process of capturing knowledge by the externalization process in project-based organisations. This conceptual model will identify how to cope with the context of knowledge, generalising the unique and of peculiar nature of the projects and implementing the process of capturing knowledge into the process of everyday work.”

After extensive theoretical exploration, it came forward that the following subjects are important for managing knowledge in project-based organisations: Context of knowledge, bringing the capturing of knowledge in the process of everyday work, and generalising the typical nature of projects. The empirical existence of these factors was researched at a project, executed by Hak. At Hak it was observed that to define the context of knowledge, the following factors need to be addressed: Political, economical, social, technical, legal and environmental.

For capturing knowledge in the practice everyday work, it was found that in construction management meetings, time must be made available to discuss lessons learned since the previous meeting. Employees must also have the opportunity, to add by themselves new knowledge whenever arising. In this research, the following types of knowledge are identified to be relevant for capturing and reuse: process knowledge; knowledge about clients, subcontractors and personnel; knowledge about reusable details; knowledge about legal and statutory requirements; and knowledge about who knows what.

To cope with the typical nature of projects the CommonKADS methodology has been proposed to supertype/subtype construct to specify a pre-defined knowledge structure. This structure should set out a hierarchy to which knowledge will be defined, to provide understanding where knowledge needs to be placed or located.

Based on the findings in these subjects seven criteria and eight knowledge types are proposed for a knowledge management model, for the Hak organisation. This model discusses how new knowledge should be entered, and how existing knowledge should be located. Import element is to set out the context of the knowledge in this model.

Based on this knowledge management model recommendations have been made. The most important recommendation is: to develop a knowledge management system that will enable the acquisition, storage and distribution of knowledge between projects and their employees.

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Index

Management summary...5

1 Introduction ...9

2 The company ... 10

2.1 Hak – A historical overview...10

2.2 Hak – Organisational structure and activities ... 10

2.2.1 A. Hak Leidingbouw B.V. and A. Hak International B.V. ... 11

2.3 Projects... 12

2.4 Wrap-up... 13

3 Problem identification ... 14

3.1.1 Wrap-up ...15

4 Literature study ... 16

4.1 Relevance and definitions ...16

4.1.1 Definition of knowledge, management and project-based organisation ... 16

4.1.2 Importance of knowledge... 18

4.2 Theories of knowledge management ... 18

4.2.1 Wrap-up ...22

4.3 Phases of knowledge management ... 22

4.3.1 Knowledge Creation ... 22

4.3.2 Knowledge conversion and storage ... 28

4.3.3 Knowledge storage ... 31

4.3.4 Wrap-up ...31

4.4 Knowledge Management in Project-based organisations ... 32

4.4.1 Typical nature of projects ... 32

4.4.2 Practice of capturing knowledge in PBO’s ... 33

4.4.3 Context of practice... 34

4.4.4 Important factors of knowledge management in PBO’s ... 34

4.5 Wrap-up... 35 5 Methodology ... 36 5.1 Research direction ... 36 5.1.1 Research objective... 37 5.2 Research lay-out ... 39 5.2.1 Literature study ... 39 5.2.2 Interviews ...39 5.2.3 Documentation at Hak... 40

5.2.4 Analyzing and justifying of collected data... 41

5.3 Wrap-up... 42

6 Externalizing knowledge in PBO’s ... 43

6.1 Context of knowledge ...43

6.1.1 Definition of context... 43

6.1.2 Importance of context ... 44

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6.2 Capturing of knowledge at every day work ... 46

6.2.1 Challenges in capturing knowledge... 46

6.2.2 A framework for capturing knowledge ... 47

6.2.3 Wrap-up ...49 6.3 Generalizing knowledge ... 50 6.3.1 Generalizing knowledge ... 50 6.3.2 CommonKADS methodology... 51 6.3.3 Wrap-up ...52 6.4 Wrap-up... 53

7 Using knowledge management at Hak ... 54

7.1 Current situation ... 54

7.1.1 Enabling conditions for knowledge management ... 54

7.1.2 Knowledge externalization at Hak ... 58

7.1.3 Evaluation of the current situation ... 60

7.1.4 Wrap-up ...62 7.2 Context... 63 7.2.1 Political factors ... 63 7.2.2 Economical factors ... 63 7.2.3 Social factors ...64 7.2.4 Technological factors... 64 7.2.5 Legal factors ...65 7.2.6 Environmental factors ... 65 7.2.7 Wrap-up ...66

7.3 Capturing knowledge in practice of everyday work ... 67

7.3.1 Relevant knowledge for reuse... 67

7.3.2 Capturing knowledge... 70

7.3.3 Wrap-up ...71

7.4 Generalizing knowledge ... 72

7.5 Wrap-up... 74

8 Hak’s knowledge management model ... 75

8.1 Need for a knowledge management model ... 75

8.2 Criteria for the knowledge management model of Hak. ... 76

8.3 Knowledge types for model... 78

8.4 Knowledge management model for Hak ... 79

8.4.1 Knowledge model structure ... 79

8.4.2 Hak’s knowledge management model... 81

8.5 Wrap-up... 84

9 Conclusion ... 86

9.1 Conclusions ... 86

9.1.1 First research question ... 86

9.1.2 Second research question ... 87

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9.1.4 Other relevant conclusions ... 88

9.1.5 Final conclusions... 89

9.2 Recommendations ...90

9.3 Limitations ... 91

9.4 Suggestions for further research ... 92

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1 Introduction

This thesis is the result of a research which is executed at A. Hak Beheer B.V (Hak). This company executes several activities, mainly utility works. This research focusing on Hak`s core business, the installation of large pipeline networks. This paper will serve as a survey for Hak, as well as a Master thesis for the faculty of Economics and Business of the University of Groningen.

The cause for this research was set out by the board of A. Hak International B.V. They desired to have better insight, in the organisational factors that play a key role in managing projects. In the domestic and international market, Hak is well known as an established player, for the installation of large infrastructural projects. As a contractor on these projects, the organisation of Hak has to cope with many internal and external factors to carry out in an efficient manner these projects. The projects that Hak executes have mainly a non-repeating character. And hence, when a project is completed at one location, all the equipment is gathered, to start the next project at a total different location, and at different circumstances. Resulting in a direction for this thesis to research how Hak can share their know-how among their projects in order to solve problems.

This thesis will have the following structure: in the second chapter an introduction to the company is provided. Here two divisions will be explained where this thesis focuses on: A. Hak Leidingbouw B.V. and A. Hak International B.V.; further referred to as Hak. Also a short description of the projects will be given. In chapter three the problem will be identified to direct this research to. Chapter four will provide an overview of relevant literature according to the problem. This chapter will mainly discuss the theory of Nonaka and Takeuchi (1995): the theory of organisational knowledge creation (Nonaka and Takeuchi, 1995; Von Krogh, Ichijo and Nonaka, 2000). Also other theories will be discussed, to result in basic steps in knowledge management.

Chapter five will set out the methodology for this research. The objective and guiding research questions will be introduced that are the foundation for this research. Accordingly, the research lay-out will be introduced.

Chapter six will be the foundation for the diagnoses that is made in chapter seven. In chapter seven, the current situation of knowledge management and sharing at Hak will be discussed. Also, the subjects set out in chapter six will be discussed to the situation of Hak.

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2 The company

In this chapter the company Hak will be introduced. The company is operating in a wide range of activities undertaken by several subsidiary companies. The main focus of this chapter will be on the subsidiaries and projects executed. Firstly, a short historical overview will be given. Then the organisational structure and activities will be explained, followed by the two divisions: A. Hak Leidingbouw B.V. and A. Hak International B.V. To finalise this chapter, a description how the projects are executed will be attached.

2.1 Hak – A historical overview

The company was founded in 1963 as a transport company that became specialised in the transportation of pipelines. In the early sixties the founder of the company, Chairman Arie Hak, made his first big step: next to the transportation of pipelines he was also going to install those pipelines. The company got a strong impulse in the seventies when Dutch clients like the Gasunie preferred to give their contracts to Dutch companies. With the expertise Hak developed with these contracts, she also started to operate outside the boundaries of the Dutch market.

In the middle of the eighties Hak seemed to be the preferred partner for the installation of large-scale electricity, telecommunication and data communication networks throughout the Netherlands. By adjusting to the market demand, Hak continued to develop her expertise. The design, preparation, installation and management of infrastructural networks, above- and underground installations of pipeline network and cables, are now part of the rich expertise of Hak.

2.2 Hak – Organisational structure and activities

This thesis is executed at the divisions Leidingbouw and International. Before these divisions are discussed, more insight is given about the holding: the A. Hak Park. Also the activities of the complete A. Hak Park will be elaborated upon to understand where the activities of Leidingbouw and International derived from.

The A. Hak Park is a traditional family business that has expanded over the years. The A. Hak Park is divided into several subsidiaries that execute a broad range of activities. The structure of the Park and its subsidiaries is shown in Figure 2.1. At the head of the A. Hak Park stands the CEO W.D. van Geenhuizen. The number of employees of the A. Hak Park is approximately 1500, and in the high season 2000. The turnover rate lies between 250 and 300 million Euros, with an approximate return before tax of 6 to 7%.

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Hak can deliver. Currently the divisions are smaller and more effectively organised, so the management of the A. Hak Park can better identify loss-making factors. This leads to a better understanding how to cope with these loss-making factors.

The culture at the entire Hak Park can be best described as a no-nonsense organisation where they provide pragmatic solutions for their customers.

Figure 2.1: Hak organisation and research scope

The A. Hak Park offers its customers a wide range of activities. These activities range from the installation of large pipeline networks for the distribution of water, gas, oil, etc to producing lighting towers for football stadiums. All these activities can be divided in four main activities, which are:

 Underground activities: networks for the transportation of gas, oil, water, medium- and high voltage electricity cables, telecommunication and data communication cables;

 Aboveground activities: concern ‘grassroot’, ‘brownroot’, stops, shutdowns and maintenance of mechanical installations, producing apparatus for mechanical installations, public lighting and heating techniques for the infrastructure of cities;  Offshore activities: concern outfalls and shore approaches (methods on how

pipelines are transported to sea or land), grassroot, brownroot, stops, shutdowns and maintenance of mechanical installations;

 Utility works: concern distribution of gas, water, wastewater, city heating, electricity, tele- and data communication.

These activities indicate that Hak is well known in the installation of cables and pipelines. Techniques as open front borings, shield borings and horizontal drillings also form a part of the scope. These techniques help to cross obstacles like roads, railways, waterways and environmentally protected areas.

Now the organisational structure is discussed, the divisions of Leidingbouw and International will be discussed.

2.2.1 A. Hak Leidingbouw B.V. and A. Hak International B.V.

This section will elaborate on the area where this thesis is executed. This area is indicated in figure 2.1 by the coloured parts. The relevance of this part is that it discusses the main characteristics of the area where the thesis is executed.

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Both these divisions can be characterised as a project-based organisation, since they produce service-enhanced complex products and services (Hobday, 2000). The main focus of their projects is the installation of large pipeline networks. These networks can be labelled as large, due to the diameters of the pipes and lengths of the network. The projects can be seen as a part of the construction sector where projects are defined (Gann and Salter, 2000):

 Their design and production processes are organised around projects;

 They usually produce non-repeating, or at least highly customised, products and services; and

 They operate in diffuse coalitions of companies along the supplier-customer chain.

These definitions also correspond to the projects which are executed by these subsidiaries. Leidingbouw and International mainly produce large pipeline networks for their clients like large gas, oil and water suppliers, such as Gasunie and NAM. The networks they produce are the main transportation networks of gas, oil or water. These networks often go from the source of extraction, to large stations where the product is needed.

A. Hak Leidingbouw B.V. focuses on projects in the Netherlands, where A. Hak International B.V. focuses on the international market to expand their market. So the core activities are the same, where issues like different cultures, expatriates, etc also play an important role in the progress of projects for A. Hak International B.V. In spite of the two different divisions, Leidingbouw and International share the same equipment and specialists for the execution of their projects. In the remainder of this thesis no distinction will be made between A. Hak Leidingbouw B.V. and A. Hak International B.V. In the remainder of this thesis they will be referred to as Hak.

2.3 Projects

In order to understand what kind of information and knowledge emerges at the activities of Hak it is wise to elaborate on the projects of Hak.

Most projects that Hak carries out are non-repeating projects. Meaning when a project is completed at one location, the ownership of that project is handed over to the client. Hak can then focus on a new project, at another location. The projects have a unique character, due to changing circumstances at each project. These circumstances are influenced by the location, composition of the project team, specifications to the pipes, conditions set out by the client, etc. The structure, sequence of activities, and working methods are rather comparable to each other, which make projects comparable to each other.

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Gasunie and Nederlandse Aardolie Maatschappij (NAM), and other comparable international organisations.

To tender for these projects, it is important that the company is qualified. Qualification depends upon certificates of the required size, references, capacity, technical and financial demands. Hak is qualified to carry out installations of networks that require the largest diameter. Hak also operates in collaborations like consortiums, joint-ventures or as a designated partner.

During these projects a wide range of activities are executed. In this thesis the focus will be only on pipe construction activities. Other important issues like reinstating the ground which is required to bring it back in its original state will not be discussed. This is not part of this research. These issues are not part of the core activities in order to complete projects. Often these tasks are subcontracted.

The project team(s) consist of several specialists required to carry out the project. These specialists can be seen in the functions of project manager, planning engineers, welding engineers, test engineers, trench digger operators, etc. To secure the progress of the project it is important that the welding team has a continuous process. This progress is dictated by the performance of the welding teams, by welding the pipes into a pipe-string. Also, the process of lowering the string into the trench must follow in the same progress. These teams have a high impact on the (financial) result. This is due to the usage of heavy and expensive equipment and highly paid specialists. In these projects the principle is adopted, when these two teams work efficiently, the whole project will be efficient.

After a project has been completed, the project team is demobilised and transferred to new projects. Usually there is little time between finishing and start-up of a new project. Hardly any time is spending to evaluate and analyse the project.

2.4 Wrap-up

The aim of this chapter was to provide a general understanding of the organisation and especially, the company structure and projects in which this thesis is executed.

In this chapter is concluded that Hak is a project-based organisation that has to cope with several issues in order to carry out their projects successfully. Hak would like to have better insight information, and what factors play a key role in managing these projects.

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3 Problem identification

“Columbus didn’t drift purposelessly around. He sailed in a westerly direction on the foundation of a plausible theory.”

Blok (translated from Dutch)

The statement of Blok indicates the importance of a plausible foundation for a thesis. To conduct a value added research, it is important to identify the problem to direct this thesis to. Therefore a preliminary research was carried out to identify the problems whereto the main research could be directed. This chapter will deal with the identification of the problem.

The objective of this problem identification is to identify the problems and from there select a topic to address this research to. The problem owner has spoken out that research into the organisational aspects of the approach to pipeline installation projects is necessary. Also from the background of the study Technology Management the most value will be added when the organisational aspect is researched.

To find the direction to address this research, interviews were conducted with the relevant internal stakeholders at Hak. In cooperation with the concerned problem owner at Hak (P. van der Spoel) the following stakeholders where identified as relevant to interview:

 Director;

 Manager Operations;  Financial Manager;

 Manager Estimating department;  Project Managers.

The interviews that have been carried out had an open style (De Leeuw, 2003). This gave the respondent the opportunity to discuss all kinds of information, which could gain a lot of insight into the situation for the researcher. A minimal structure was used to elicit at least the preliminary wanted information. The aim of the interviews was to find a shared and relevant area of the problem where all the stakeholders agreed that improvements are welcome.

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experiences of other managers who have dealt with the same problem. Interviews indicated that the progress of a project is highly influenced by the experience of the project manager. Therefore it is interesting for Hak to investigate what the possibilities are to get their managers at the same knowledge level and experience, by sharing knowledge and previous experiences. From this information the conclusion is derived that it is interesting for Hak to research what knowledge management can contribute to a project-based organisation like Hak. Knowledge management can help an organisation to manage its information, knowledge and share it among its stakeholders.

Now the problem to direct this research is identified, the structure for this thesis will be discussed. The type of research for this thesis can be best classified as a problem solving research (De Leeuw, 2003). In this type of research, an answer to the problem will be provided to the customer in consideration, in this research Hak. Problem solving research consists of a diagnosis of the current system, design a new system, implementing the system to change the situation, and evaluating the realised solution to find to what extent the problem has disappeared. This thesis will focus to the first two steps in this process. Implementation and evaluating will not be considered in this thesis, due to the constraint of time.

The diagnosis phase will first start with literature study on knowledge management, and in project-based organisations. When literature has been explored, the research objective for this research will be introduced (see chapter five). Also, the methodology to reach this objective will be discussed in that chapter.

This will specify the scope to which this research will be directed. The design phase will analyse the problem and subdivide the relevant factors. According to literature these factors will be researched, before analysing them in the current situation. Results from the current situation will be analysed, for contributing to the design of a new situation.

3.1.1 Wrap-up

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4 Literature study

In the previous section was concluded that research on knowledge management at project-based organisations was needed for Hak. This section will research knowledge management, the phases in knowledge management, and how to use knowledge management at a project-based organisation. This will set the foundation for the research objective that is proposed in chapter five.

4.1 Relevance and definitions

Defining knowledge, management and project-based organisations is a good start point for this literature study. This will be done extensively to generate unambiguous explanations of these definitions. Sequentially, the importance of knowledge to organisations will be discussed.

4.1.1 Definition of knowledge, management and project-based organisation In the book of Kluge et al. (2001), it is stated that knowledge is the understanding of relationships and causalities, and is therefore essential in making operations effective, building business processes, or predicting outcomes of business models. Where Jackson et al. (2008) add that it is a social process, because it is a social process of continual sense-making in which people build, communicate, verify and commit to mutually agreed views of the world. Knowledge is also often called the intellectual capital of a firm.

First, the definition of Nonaka et al. (1995) on knowledge will be discussed because they apply a holistic approach. They describe the definition in three steps:

1. Knowledge is about beliefs and commitment; 2. Knowledge is about action;

3. Knowledge is about meaning.

Knowledge is often used in a similar way to information, but it is important to make a distinction (Nonaka et al., 1995; Jorna, et al., 2004; Newman, 1997). These authors mention three elements that are seen as a three-stage rocket: knowledge presumes information and information presumes data. The lowest layer is formed by data, which consists of facts from the reality. When data acquires an explicit interpretation, it becomes information. When people work or reason with this information – and actually give another interpretation – information becomes knowledge. And hence, data is necessary for the elicitation of information, and information is necessary for the elicitation of knowledge.

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Explicit or ‘codified’ knowledge refers to knowledge that is transmittable in formal, systematic language. Tacit knowledge is personal, and therefore hard to formalise and communicate. Table 4.1 sets out these two types of knowledge against each other.

Thus, explicit knowledge can be expressed in words and numbers, and therefore shared in data, scientific formulas, specifications and manuals. This kind of knowledge can be stored in databases where it can be accessed and used by anyone in the organisation. But tacit knowledge is highly personal and hard to formalise, making it difficult to communicate or share it with others. This kind of knowledge can be seen as the experience a person has (Civi, 2000). This knowledge is created by employees mainly by trial and error, and making mistakes and learning from them.

The definition of Kluge et al. (2001) for management will be used in this research. This definition is used since they define this term accordance to knowledge management literature: ‘management is the conscious and systematic decision-making about the best use of scarce resources under uncertainty to achieve lasting improvements in an organisations performance’. In addition, knowledge could provide information to make the best use of the resources to make the best decision at that time.

Section 2.2.1 provided a definition of a project-based organisation. This definition will be used also in this research, since it provides understanding of the projects that Hak executes. And hence, the definition of a project-based organisation will be (Hobday, 2000; Gann and Salter, 2000): Organisations that produce mostly non-repeatable, complex products and services, and the design and production process are organised around projects.

To finalise this section, consideration of what literature mentions about knowledge in PBO’s is useful. It is acknowledged in the literature that PBO’s have problems in gathering and reusing knowledge. This is due to the peculiar and temporally limited nature of projects, so the learning across projects has become a major issue. Due to the sharing of ideas by individuals through collaborative mechanisms, knowledge is created (Belini and Canonico (2008). But knowledge management in project-based organisations is often a complex task. Due to the fact that project teams often consist of people who never previously worked together, and do not expect work together again. Next to that, project teams consist of people with diverse skills who are working together for a limited period of time.

Tacit Knowledge Explicit knowledge (subjective) (objective)

Knowledge of experience Knowledge of rationality

(body) (mind)

Simultaneous knowledge Sequential knowledge (here and now) (there and then) Analog knowledge Digital knowledge (practice (theory)

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Therefore, knowledge management in these circumstances is essential, but complex. Since created knowledge in one project can be misplaced in another context (Ajmal and Koskinen, 2008).

4.1.2 Importance of knowledge

Now knowledge has been defined, the importance of knowledge to organisations will be considered. According to Jorna et al. (2004) the knowledge dimension is for two reasons essential in the relation of people to organisations: ‘First, knowledge is the distinctive aspect of people. We are the organisms that exist at the grace of knowledge. Without it, we fall back to reflexes, instincts, standard reactions and patterns. Secondly, it is the resource, engine and result of innovations’ (translated from Dutch).

According to many authors, knowledge is one of the most important strategic resources to gain competitive advantages (Bierly, Kessler and Christensen, 2000; Jakubik, 2008; Hedlund, 2008; Nonaka, 1994; Nonaka et al., 1995; Von Krogh, Ichijo and Nonaka, 2000; Bellini and Conico, 2008; Begoña Lloria, 2007; etc). This can be illustrated by an example of Jackson and Klobas (2008). They state that, the degree to which new understanding are created, or emerge, and difficulty in this can vary between project types and industry sectors. Still, the basic principal of shared understanding remains a critical success factor for all projects. Hence, the management of these new understanding is that it can be shared and is important to manage a business successfully (Kluge et al., 2001). This knowledge can be of any type, like customer needs or an acquisition of a patent or the easy accessibility to knowledge when it is needed (Beckett et al., 2000). To create the possibility using knowledge as an advantage, it is important that knowledge is accessible in some form for exploitation.

Important to note, is that success does not necessarily go to the companies that know the most, but to the companies that can best use what they know and can access it when information is needed. These firms know what is strategically most important to the firm to the society at large (Bierly et al., 2000).

Finally, the acquiring of knowledge is not simply a matter of purchasing or trading knowledge assets but the systematic and purposive learning and construction of a knowledge base (Jakubik, 2008).

4.2 Theories of knowledge management

This section will consider relevant theories on knowledge management. This is relevant to create a complete view of what knowledge management entails.

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already exists, the second-generation takes the position that knowledge is produced in human social systems. This is done through individual and shared processes that have regularity. This process is referred to as the KLC. The KLC has two main topics called knowledge production and knowledge integration, which are influenced by external inputs and the business processing environment. The knowledge production section contributes the knowledge creation and evaluation of the knowledge, where knowledge integration deals with exploitation of the knowledge through teaching, sharing, searching and broadcasting. The KLC is displayed in figure 4.1.

To provide good understanding of the KLC, McElroy makes an important distinction between knowledge processing and knowledge management. Knowledge processing is the process of knowledge production and integration, and also the individual and group learning. Knowledge management then is a discipline that tries to influence knowledge processing.

Another principle that is provided by the literature is described in Nonaka and Takeuchi’s (1995) Theory of Organisational Knowledge Creation. Here a model is presented that should be interpreted as an ideal example of the knowledge creating process. This process consists of 5 phases: (1) sharing tacit knowledge; (2) creating concepts; (3) justifying concepts; (4) building an archetype; and (5) cross-levelling knowledge. This model is presented in figure 4.2. The model indicates five enabling conditions that promote organisational knowledge creation and the four modes of knowledge conversion.

As is shown in this model, it starts with the sharing of tacit knowledge, which is created by the process of socialisation. This is because rich and untapped knowledge, which resides in individuals, must first be enlarged within the organisation. In the second phase, tacit

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knowledge must be converted to explicit knowledge. This can be done in the form of a new concept, that it can be justified in the third phase. Here, the new concept can be evaluated if it is worthy to pursuit. If this is the case, it can be converted in a prototype or operating mechanism. The last phase extends that the created knowledge can be shared among other departments in or outside the organisation.

The model of Nonaka and Takeuchi is mainly based on the concept of knowledge creation. It does subscribe phases of the storing information, although more seen in terms of prototypes and mechanisms. Storage of knowledge in written items, which can be used by other people to solve problems, is not in the focus of this model.

McElroy states that his model reflects a particular point of view that it is not a neutral concept or framework, how knowledge is produced and integrated in social systems. The KLC has to little focus on the storage of knowledge, from where this knowledge can distributed into the organisation for sharing and reusing knowledge.

Both systems do agree that knowledge is created, or produced, in social human systems. Also, they represent the environmental influences on the process, which are important since they create different circumstances that enable the need for change.

Another method that distinguishes different phases in knowledge management is the KM cycle of Dalkir (Dalkir, 2005). This KM cycle is distilled from other major approaches of KM cycles, such as Meyer and Zack Cycle (1996); Bukowitz and Williams KM Cycle (2000); McElroy Cycle (2003); and the Wiig KM Cycle (1993).

The KM cycle of Dalkir identifies three major stages: 1. Knowledge capture and/or creation

2. Knowledge sharing and dissemination 3. Knowledge acquisition and application

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Dalkir states that in the transition from knowledge capture/creation to knowledge sharing and dissemination, knowledge content is assessed. Knowledge is contextualised in order to be understood (“acquisition”) and used (“application”). This stage then feeds back into the first one in order to update the knowledge content. These stages have resulted in Dalkir’s integrated KM cycle which is outlined in figure 4.3 (Dalkir, 2005: p.43).

Dalkir (2005) distinguishes between knowledge capture and creation. He states that knowledge capture refers to the identification and subsequent codification of existing (usually previously unnoticed) internal knowledge and know-how within the organisation and/or external knowledge from the environment. Knowledge creation, on the other hand, is the development of new knowledge and know-how innovations that did not have a previous existence within the company (Dalkir, 2005: p.43). When knowledge is then created, it is important to present an assessment against selection criteria that will follow closely the organisational goals. Like is the content valid? Is it new or better? Or is it of sufficient value to the organisation so that it could be added to the store in the intellectual capital. When it has been decided that the new knowledge is sufficient, the next step is also to contextualise this content.

In this thesis the phrase knowledge management will be used. This is because knowledge processing focus is only to the production and integration of knowledge, where knowledge management tries to influence that discipline. This thesis will more focus to the discipline that influence knowledge processing, therefore knowledge management is chosen.

For this research the following phases of knowledge management are considered. Knowledge management is a process that should encourage the knowledge creation, storing or locating, and sharing between projects and stakeholders at Hak. From the section above, the following phases of knowledge management are proposed for this thesis:

1. Knowledge creation

2. Knowledge conversion and storage 3. Knowledge sharing and dissemination

Knowledge Capture and/or Creation Knowledge Sharing and Dissemination Knowledge Acauisition and Application Update Assess Contextualize

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This thesis will mainly focus on Nonaka and Takeuchi’s (1995) theory of organisational knowledge creation. The term knowledge creations is chosen since knowledge production focuses to much on the idea that everyone can produce knowledge, like producing a product if you just use the right ingredients. Acquiring knowledge is mostly a creative process, where you try to create the right circumstances for acquirement of knowledge. Therefore you try to create knowledge, instead of produce knowledge. The distinction that is made by Dalkir between knowledge creation and capture is also important to consider. Combining explicit knowledge to explicit knowledge by Nonaka et al. (1995) indicates similar characteristics to knowledge capture, described by Dalkir (2005). Both types identify that this knowledge is already available for the organisation, but are still unnoticed. Since knowledge conversion describes more types of knowledge conversion, then only knowledge capture (Dalkir, 2005), this will be a phase in this research.

Knowledge sharing and dissemination is a rather important phase in knowledge management. Once knowledge is created it should be distributed throughout the organisation. Then other stakeholders in the organisation can benefit of the new knowledge. When knowledge is not shared, the collective benefit for other stakeholders is lost, and a KM system has less value to the organisation. Although this is an important phase, knowledge sharing and dissemination will not be discussed in this research. This is because it is not within the main scope of this research.

4.2.1 Wrap-up

This section elaborated upon which phases could be identified in knowledge management in project-based organisations. This research came up with three phases, knowledge creation, knowledge conversion and storage, and knowledge sharing and dissemination. These phases will be elaborated further on in the next section. When this has been done, the use of knowledge management in project-based organisations will be researched.

4.3 Phases of knowledge management

This section will first discus the phases of knowledge creation, and secondly the phase of knowledge conversion and storage. These phases will be discussed to provide an unambiguous understanding.

4.3.1 Knowledge Creation

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are very similar, as they both relate to human cognition, and often used as synonyms. But there are some differences, set out by Jakubik (2008). She states that learning includes the process of knowledge creation but includes many other processes as well, such as knowledge destruction, re-learning, forgetting, solving problems and resolution of conflicts in the learning process. Knowledge creation is an intensely human, messy process of imagination, invention and learning from mistakes, embedded in a web of human relationships.

Nonaka et al. (1995:p.3) define knowledge creation as: “the capability of a company as a whole to create new knowledge, disseminate it throughout the organisation, and embody it in products, services, and systems”.

In project driven organisations, like Hak, knowledge creation is often seen as directly inherent to the core activities of the organisation itself. Because at such knowledge intensive domains, the day-to-day activities of running and managing projects do require a careful evaluation of issues related with the elaboration of new knowledge to deal with the upsurge of technical and operational problems that project management teams have to face (Bellini and Canonico, 2007).

Two organisational models for creating knowledge are clearly defined in the literature. These are the ‘theory of organisational knowledge creation’ by Nonaka and Takeuchi, and the N-form structure proposed by Hedlund (Begoña Lloria, 2007). This report will focus on the ‘theory of organisational knowledge creation’ of Nonaka and Takeuchi. This is due to the fact that Hedlund (1994) focuses in his model to knowledge management and creation to large companies. Another reason is that Hedlund proposes a top-down approach were he gives the role of catalyst, protector and architect of knowledge creation to the top-management. Nonaka et al. (1995) on the other hand, suggest a structure where the middle-management is the catalyst between different groups. Hedlund (1994) also identifies the role of the middle-management, but he makes exception that middle managers are more exercising specific competences than managing processes. Nonaka, et al. (1995) state that knowledge is created by the middle-management, who are often leaders of a team or a taskforce. Knowledge is created through a spiral conversion process involving both the top and the front-line employees (i.e., bottom). The concept of middle-up-down management will be explained in more detail, later on in this section.

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perception for knowledge creation at Hak. At Hak, middle-management is located directly at the location where the project is executed, and therefore nearer to place where knowledge is created.

According to the theory of Nonaka and Takeuchi (1995), knowledge is created by the flow of information, anchored in the beliefs and commitment of its holder. This understanding emphasises that knowledge is essentially related to human action. At the fundamental basis of their theory on knowledge creation, they focus attention to the active, subjective nature of knowledge represented by such terms as “commitment” and “belief” that are deeply rooted in individuals’ value systems. So both information and knowledge are considered as context-specific and relational in that they depend on the situation and are created dynamically in social interaction among people.

The focus of the theory Nonaka and Takeuchi (1995) lies in two dimensions, the ontological and epistemological dimension. For the ontological dimensions, which is concerned with the levels of knowledge creating entities (individual, group, organisation, and inter-organisational), they state in a strict sense that, knowledge is created only by individuals. This means that an organisation cannot create knowledge without individuals. The organisation supports creative individuals or provides contexts for them to create knowledge. The theory should therefore be understood as a process that “organisationally” amplifies the knowledge created by individuals and crystallises it as a part of the knowledge network of an organisation. The cornerstone of the epistemological dimension of the theory of Nonaka et al. (1995) is the distinction between tacit and explicit knowledge, that already have been explained in section 4.1.1. They find that the key in knowledge creation lies in the mobilisation and conversion of tacit knowledge. This approach will be dealt with in section 4.3.2.

But before this approach of knowledge conversion will be elaborated on, enabling conditions that are found for organisational knowledge creation will be discussed. These conditions will set out the role of the organisation in the organisational knowledge-creation process (Nonaka, et al. 1995).

Enablers of knowledge creation

In the book of Nonaka et al. (1995), the five-phase model of the organisational knowledge-creation process is discussed. This model is also shown in Fig 3.2. The explanation of the steps was already given in section 4.2. This model gives five enabling conditions of knowledge creation - intention, autonomy, fluctuation and creative chaos, redundancy, and requisite variety – will be discussed in this section.

Intention

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frontline employees. Through the intention, the organisation can reorient and promote new intention through collective commitment.

Intention is defined as an organisations aspiration to achieve its goals. The efforts that are used to achieve the intention usually take the form of strategy within the business setting. From the viewpoint of knowledge creation, this strategy mainly has to focus on the acquiring, creating, accumulating and exploitation of knowledge. Important with this enabler is that an organisation conceptualise the vision it has on what kind of knowledge should be developed and how to operationalise it into a management system for implementation.

Intention should provide the main criteria to value the perceived or created knowledge, and often expressed in organisational standards to evaluate and justify created knowledge.

Autonomy

This second enabler means that at the individual level, all members of an organisation must be able to act autonomously as far as circumstances permit. Because when individuals have the chance to act autonomously, the organisation can increase its chances to introduce unexpected opportunities. When individuals can operate autonomously, motivation to create knowledge can improve.

These autonomous individuals function as a part of a holographic structure, in which the whole and each part share the same information. Like original ideas origin at individuals, which they share within their team so it can evolve to an organisational idea. From the viewpoint of knowledge creation, this kind of organisation is more likely to maintain a greater flexibility in the acquiring, interpreting and relating information.

Fluctuation and creative chaos

For these enablers, periodic breakdowns are necessary to change the human perspective on situations. Breakdowns refer to an interruption of an individual’s habitual, comfortable state of being. Due to breakdowns, people will reconsider their fundamental thinking and perspective. In other words, they begin to question the validity of their basic attitudes to the world. And this is a good enabler, since the situation will be changed that will create new knowledge.

These enablers stimulate interaction between the organisation and the external environment. And hence, fluctuation means changes in the process, which are mainly caused by changes in the environment. The creation of knowledge on the individual level also needs a continuous interaction with the external environment.

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Redundancy

With redundancy is meant the existence of information that goes further then immediate operational requirements of organisational members. In organisations, redundancy refers to the overlapping information for business activities, management responsibilities and the organisation as a whole. This enabler plays a key role in the process of creating knowledge on the level of the organisation, but for the organisation itself redundancy is ambiguous. This is because redundancy can be seen as surplus for the organisation, which needs to be eliminated in order to work efficient. But for the creation of new knowledge, redundant information is seen as a useful tool.

To let organisational knowledge creation take place, a new created concept needs to be shared with other individuals or parties that not immediately need the concept. By sharing redundant information, the sharing of tacit knowledge will be promoted because other people can better sense what the other tries to articulate. This will enable, that new information and perspectives are generated. When an organisation has enough redundant information then more coincidences can be dealt with, which will create more forms of knowledge flexibility. In this manner the knowledge creation process will be accelerated. This enabler can cause an increase of information that can be generated so a balance has to be found in the creation and processing of extra information. A method to deal with this is to determine the appropriate location of information and knowledge storing in the organisation.

Requisite variety

Requisite variety must help the organisations internal diversity match the variety and complexity of the environment. This enabler should help all members in the organisation to get access quickly to already existing information. Because when information differentials exist within the organisation, the members of the organisation cannot interact on equal terms, which hinder the search for different interpretations of new information. Therefore it is necessary that everybody gets access to the required information in the minimum number of steps. For this purpose must (1) organisational member should know who owns what information, and (2) they should be related to a minimum of colleagues so that they are not loaded with information in the excess of each one’s cognitive capacity.

Middle-Up-Down Management

This topic has already been introduced in section 4.2, and is described by Nonaka (1994; et al., 1995). Implementing knowledge management into an organisation requires a proper management style. As described in section 4.2, the middle-up-down management style of Nonaka will be used. The middle-management of Hak, the project managers, is seen as the catalysts of managing projects at Hak. Therefore this management style will now be discussed.

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horizontally and vertically. A major characteristic of the model regarding knowledge creation is the wide scope of cooperative relationships between top, middle, and lower managers. No one major department or group of experts has the exclusive responsibility for creating new knowledge.

In this model, the top management provides “visions for directions” and also the deadline by which the visions should be realised. These visions are translated by the middle management in middle range visions that have to be realised in the fields. In other words, while top management articulates the dreams of the firm, lower managers look at the reality. The gap between those two forms of perspectives is narrowed by and through middle management. So, it is a leadership style that facilitates the parallel knowledge creation process taking place simultaneously at the top, middle, and lower management respectively.

The tasks of the lower management and frontline employees are immersed in the day-to-day details of particular technologies, products and markets. Nonaka specifies that they are the experts in the realities of a company’s business. But while they are overloaded with highly specific information, they often find it difficult to turn that information into useful knowledge. Even when they try to develop meaningful ideas and insights, it can be difficult to communicate the importance of that information to others. People do not just passively receive new knowledge; they actively interpret it to fit their own situation and perspectives. So, what can work or makes sense in one context can change or lose its meaning when communicated to people in a different context.

Nonaka identifies that the main job of the top and middle management in this model is to orient this chaotic and messy situation towards purposeful knowledge creation. This can be done by providing a conceptual framework that helps lower managers and frontline employees to make sense of their own experience.

As mentioned before, the top management sets out the vision of the company. This also concerns the future. The top management then asks itself questions on behalf of the entire organisation: what are we trying to learn, who we need to know, where should we go, etc. So the responsibility of the top management is to articulate the company’s conceptual umbrella. The final role of the top management is to take away any obstacles and prepare the ground for the project teams who are headed by the middle management (project manager).

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the middle managers are the true “knowledge engineers” of the knowledge creating company.

4.3.2 Knowledge conversion and storage

The enabling conditions, explained in the previous chapter, promote organisational knowledge creation. But according to Nonaka, et al. (1995), the key in knowledge creation lies in the interaction between tacit and explicit knowledge. This allows them to postulate four different modes of knowledge conversion. These modes of knowledge will be explained first, then how to store knowledge will be discussed.

Four modes of knowledge conversion

Nonaka et al. (1995) make the assumption that knowledge is created through the interaction between tacit and explicit knowledge. Through this interaction information is conversed, and through this conversion knowledge is created. This created knowledge can be captured. Therefore it is important to consider the four different modes of knowledge conversion that Nonaka et al. (1995) postulate:

 Tacit to tacit knowledge, socialisation;  Tacit to explicit knowledge, externalisation;  Explicit to explicit knowledge, combination; and  Explicit to tacit knowledge, internalisation.

Figure 4.4: Four modes of knowledge Conversion (Nonaka and Takeuchi, 1995)

Socialisation: From tacit to tacit

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emotions and specific contexts. Therefore individuals need some kind of experience to understand what the other is doing, or trying to explain.

Combination: From explicit to explicit

This mode is a process of systemising concepts into a knowledge system. This conversion mode involves the use of social processes to combine different bodies of explicit knowledge held by individuals. Individuals exchange and combine knowledge through media, such as documents, meetings, telephone conversations or computerised communication networks. Reconfiguration of existing information through the sorting, adding, combining, and categorising of explicit knowledge can lead to new knowledge. A critical role in this mode is the middle-management, who create new concepts through networking of codified information and knowledge. Creative uses of computerised communication networks and large-scale databases facilitate this mode of knowledge conversion.

Externalisation: From tacit to explicit

This is a process of articulating tacit knowledge into explicit concepts. The externalisation mode of knowledge conversion is typically seen in the process of concept creation and is triggered by dialogue or collective reflection. When you attempt to conceptualise an image, you try to express the essence mostly in language. But these expressions are often inadequate, inconsistent and insufficient. Discrepancies and gaps between images and expressions do help to promote ‘reflection’ and interaction between individuals.

The externalisation mode of knowledge conversion is typically seen in the process of concept creation and in triggered by dialogue or collective reflection (Nonaka et al. 1995).

A frequently used method to create a concept is to combine deduction and induction. Deduction, which is a logical derivation, can be used from an idea to establish which tacit knowledge you want to convert. Let’s use an example at Hak. This example will be used with the corporate slogan of Hak, which is: The dedicated thinkers and go-getters of A. Hak (translated from Dutch). So from this slogan combined with the topic of this research, they should think about which knowledge is important to transfer throughout its organisation/projects or stakeholders, and then how to do it. The part of induction then raises a process by an external incentive. And hence, Hak can use external experts that can help to set out the techniques questions of how to do it, as well as the opinions of internal and external stakeholders what they find important to know. When these analytical methods cannot find an adequate expression for an image, a non-analytical method has to be used. Externalisation is, therefore, often driven by metaphor and/or analogy. A metaphor is a way of perceiving or intuitively understanding on one thing by imaging another thing symbolically. So, metaphors create novel interpretation of experience by asking the listener to see one thing in terms of something else and create new ways of experiencing reality (Nonaka et al., 1995:p.67).

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are often confused. Association of two things through metaphor is driven mostly by intuition and holistic imagery and does not aim to find differences between them. On the other hand, association through analogy is carried out by rational thinking and focuses on structural/functional similarities between two things, and hence their differences. Thus analogy helps to understand the unknown through the known and bridges the gap between an image and a logical model (Nonaka et al., 1995:p.67).

Once an explicit concept is created, it can be modelled and shared throughout the organisation. In a logical model, no contradictions should exist and all concepts and propositions must be expressed in systematic language and coherent logic.

Internalisation: From explicit to tacit

This mode of knowledge conversion can be closely linked by ‘learning by doing’ (Nonaka, et al. 1995:p.69). There the explicit knowledge in the firm must make the transfer to tacit knowledge which is held by individuals. Because when experiences through socialisation, externalisation and combination are internalised into the individual knowledge base in the form of shared understandings, mental models or technical know-how, become valuable assets. For explicit knowledge to become tacit, it helps if knowledge is verbalised or diagrammed into documents, manuals or oral stories. Documentation helps individuals to internalise what they experienced, thus enriching their tacit knowledge. In addition, documents and manuals help facilitate the transfer of explicit knowledge to other people, helping them to experience the experiences of others. If for example, listening and reading a success story makes some members of the organisation feel the realism and essence of a story, the experience they perceived may create an experience of their own, thus a tacit model. When such tacit models are shared they become part of the organisation.

In addition, organisational knowledge creation is a continuous and dynamic interaction between tacit and explicit knowledge.

This interaction is shaped by shifts between different modes of knowledge conversion, which are in turn induced by several triggers (Nonaka et al. 1995). This process is also indicated the knowledge spiral in figure 4.5.

This section discussed the capture of knowledge. As has been discussed, knowledge can be captured in tacit mental models held by individuals, and in explicit models, stories, manuals or documentation. Through a dynamic interaction between tacit and explicit, more knowledge is created. And hence, by discussing one’s experiences with one another, shared understandings are established which helps to clarify the situation. When this is

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achieved, people can document it; make a concept or even a story. Tacit knowledge then becomes explicit, and this knowledge can be transferred by a computer network or in conversations. As discussed in this chapter, tacit knowledge is stored in individuals’ minds. Explicit knowledge can be shared in computerised communication networks or databases. 4.3.3 Knowledge storage

The storage of knowledge and use of knowledge management systems will be discussed in this chapter. To start this section, ‘knowledge management systems (KMS)’ will be first considered: ‘A KMS is an ICT based platform or applications of integrated functions that enable to manage the -contextual attached- explicit and tacit artefacts of the organisation. It supports the network of knowledge workers to create codification, distribution and use of knowledge, to better make decisions and carry out the tasks more efficiently’ (Jorna, et al., 2004: translated from Dutch). In addition they add that there is not yet an application or system that supports all these functionalities. A KMS must support one or more knowledge management systems (Jorna, et al., 2004).

Jorna states that, erroneously too much focus is still placed on technology in knowledge management, and this is often seen as an inextricable part of KM. This goes beyond the central role of the knowledge worker and the cultural aspects around knowledge creation and sharing at each knowledge management initiative. A KMS should functionalities to cope with explicit knowledge artefacts, as well as tacit knowledge artefacts. For these tacit artefacts it is mainly important to realise and support communication networks and communities (Jorna, 2004).

For project-driven organisations project close-out documents are proposed as a means of collecting knowledge that is generated during a project (Tukel, Rom and Kremic, 2008). These documents are made at the end of a project, and these project close-out documents are made for the client. Tukel et al. (2008) state that these documents can be prepared with little or no cost to the company other then the managers’ time. But they also state that project close-out documents and post-project reviews are commonly suggested tools for knowledge transfer, in practice they are rarely used.

4.3.4 Wrap-up

This section dealt with the three proposed phases of knowledge management. These phases are the knowledge creation, knowledge conversion and storage, and knowledge sharing and dissemination.

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autonomy, fluctuation and creative chaos, redundancy, requisite variety and middle-up-down-management.

For the capture of knowledge four different modes of knowledge conversion were presented. These are: socialisation, externalisation, combination and internalisation. In accordance with these four modes, knowledge creation is seen as a continuous and dynamic interaction between the conversion of tacit and explicit knowledge. For the storage of knowledge at project-based organisations the use of post-project reviews and project close-out documents was proposed to collect knowledge that is generated during a project. Although these tools are often proposed, in practise they are rarely used.

The next step now, is to discuss the use of knowledge management in project-based organisations. The challenges of KM in this sector will be discussed in the next section.

4.4 Knowledge Management in Project-based organisations

This section will discuss the relation of knowledge management in project management. Here will be discussed how KM should be dealt with in PM or Project-based organisations, and which challenges have to be overcome for an efficient use of KM in PBO’s. This section will mainly discuss the articles of Udeaja et al. (2008), Bellini et al. (2007) and Ajmal et al. (2008). These articles are chosen since they focus on the use of knowledge management in project-based organisations. These articles have a focus on construction based companies as project-based organisations. The construction sector has significant resemblance with the sector where Hak is operating in. Next to that the published year indicates that their researches are done recently, so this would have more relevancies to this research. Therefore these articles are selected.

4.4.1 Typical nature of projects

To start this section, it should be considered that the success of KM depends on the effective and efficient deployment of various KM strategies and tools within the context of the specific organisations (Udeaja, et al., 2008). An example for a context of a specific organisation where KM could reside in is a project-based organisation. Several authors agree on the fact that a lot of progress has been made in knowledge management in the organisational matter, but there are still challenges of KM in project-based organisations (Udeaja, et al., 2008; Bellini, et al., 2007; Ajmal, et al., 2008).

These challenges in KM to PBO’s are influenced by several different factors that are discussed in the literature. PBO’s are characterised by their uniqueness, uncertainty and complexity, and it’s a common understanding that is one factor that causes challenges. PBO’s differ from other business organisations in many respects (Ajmal, et al., 2008). Also the idiosyncratic and temporally limited nature of projects is mentioned as a reason why KM in PBO’s is still challenging (Bellini et al., 2007).

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example that project teams often consists of people with diverse skills working for the first time together for a limited period of time, and they don’t expect to work together again in the future (Ajmal, et al., 2008).

So, from this part it can be concluded that knowledge management in project-based organisations still has challenges. These challenges are the consequence of the typical nature of projects due to the unique, complex and idiosyncratic character and because of the time limited nature of the projects and the great variation of people who work together on projects.

4.4.2 Practice of capturing knowledge in PBO’s

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And hence, it can be concluded that the learning moments for the organisation are mostly captured at the evaluation phase of a project. But due to insufficient time at the end of a project since team members are needed at different projects there is a lack of a systematic evaluation. And from this section also the conclusion can be made that due to the lack of capturing valuable knowledge, most knowledge retains at the people themselves and they can reuse their acquired knowledge at later stages or new projects. It is therefore important that knowledge should be captured immediately when it arises or is created. Knowledge should be preserved and utilised within the established practices of everyday teamwork.

4.4.3 Context of practice

Another element that is indicated as important with knowledge management in project-based organisations is the context of practice where the knowledge derives from. This context is strongly influenced by the circumstances that are set out for a project (Udeaja, et al., 2008; Bellini, et al., 2007; Ajmal, et al., 2008). Knowledge is created when individuals share ideas through collaborative mechanisms such as narration and joint work (Bellini, et al., 2007). By constructing meaning through these mechanisms, organisational members are provided with identity and cohesiveness that are the basis for effective learning. Bellini et al. (2008) state that it is important to recognise the creation, diffusion and application of knowledge is situated and thus heavily influenced by the context of practice.

Udeaja et al. (2008) also mention that the context is important because they emphasise that an approach is needed which captures the valuable knowledge irrespective of the type of project, type of construction organisation and the project phases. Also Ajmal et al. (2008) emphasise the importance of the context because the knowledge that is captured should create a coherent whole instead of capturing and storing lots of data. In section 2.3 of this thesis was already mentioned that the projects of Hak also have a non-repeating character, so when project is completed the next one is started. Pipeline networks are installed for a wide range of products that have to be transported in the pipes. Other variables like the required pipe diameter and geographical area to install the network change with each new project.

It is therefore important to set out the context of projects in which knowledge is created for the capturing of it, so the knowledge can be better reused at a later stage. External people from the project must also understand the context in which the knowledge emerged, to make the information applicable to their own situation when the information is needed.

4.4.4 Important factors of knowledge management in PBO’s

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