State of Knowledge-based Management in Project Networks: Case in
Finnish Infrastructure Construction Sector
Viivi Siuko
a
, Jussi Myllärniemi
b
and Pasi Hellsten
c
Tampere University, Kalevantie 4, 33014 Tampere, Finland
Keywords: Project Networks, Knowledge-based Management, Maturity Model.
Abstract: Finnish infrastructure construction sector has challenges in productivity and advancing digitalization. We
suggest that these problems can be explained with inadequate knowledge-based management (KBM)
practices: When information goes missing, employees must collect the information repeatedly. When
organizations haven’t identified their information needs, data is collected but never used. The purpose of this
research is to discover what is the priority of development to improve KBM in project network. A project
network in Finnish infrastructure construction sector typically consists of project companies and public
customers. This research was conducted by distributing a survey on maturity of KBM to 22 Finnish
organizations in infrastructure construction. 10 of these organizations are customer organizations and 12 are
project companies. The results are analyzed with a framework suggested for the maturity survey. The results
show that, in the project network, customer organizations have less developed KBM practices than project
companies, which is not surprising. The interesting point, however, is that the results highlight the importance
of the customer organizations in information sharing in the project network. Therefore, the inadequate KBM
practices of customer organizations seem to weaken the productivity of the whole project network.
1 INTRODUCTION
Digitalization is a breakthrough way of operating in
many fields affecting our daily operations as the
organizations need to consider their effectiveness and
competitive edge in relation to their counterparts.
This has been so already for many years (Lindgren et
al. 2019). Digitalization, with its many novel tools
and functions enable faster operating, better handling,
more efficient time consumption, and improved
information availability (Parviainen et al. 2017,
Isaksson et al. 2018).
The need for productivity improvements, seen
also in the infrastructure construction sector,
necessitates the efficient utilization of knowledge
resources to improve organisations’ decision-making
and advance digitalization. Several studies show that
amount of available data or information is not an issue
(e.g. Myllärniemi et al. 2019). However, the
organisations need to practice knowledge-based
a
https://orcid.org/0000-0001-7368-2610
b
https://orcid.org/0000-0002-2846-0426
c
https://orcid.org/0000-0001-7602-1690
management, as in determine which information is
relevant, how to make information more useful and
meaningful, and how to use it in decision-making
(Kaivo-oja et al. 2015; Choo 1998). Optimizing the
use of existing knowledge in order to make the best
of it helps organisations, for example, to enhance its
decision-making and knowledge processes.
Infrastructure covers commodities provided for
public use (Kasper 2015), including roads and
bridges. As described in figure 1, in Finnish
infrastructure construction sector the customer
organization typically orders infrastructure design
from design consultancies, and infrastructure
construction and maintenance from contractors. The
information needs and information are shared in the
network mainly through the customer organization.
The customer organization can have multiple projects
on going simultaneously with different consultancies
and contractors, which makes the project network
even more complex. Larsson et al. (2013) report a
similar infrastructure construction process in Sweden.
126
Siuko, V., Myllärniemi, J. and Hellsten, P.
State of Knowledge-based Management in Project Networks: Case in Finnish Infrastructure Construction Sector.
DOI: 10.5220/0011376300003335
In Proceedings of the 14th International Joint Conference on Knowledge Discovery, Knowledge Engineering and Knowledge Management (IC3K 2022) - Volume 3: KMIS, pages 126-133
ISBN: 978-989-758-614-9; ISSN: 2184-3228
Copyright
c
2022 by SCITEPRESS Science and Technology Publications, Lda. All rights reserved
Figure 1: Project network in infrastructure construction sector.
To research digitalization and productivity
challenges in infrastructure construction we answer
the question “How is knowledge-based management
perceived and dealt with in Finnish public sector
project networks?” by studying KBM in project
networks in large Finnish cities. We also offer some
propositions to solve the challenges and make some
generalizations regarding the approach to these issues
to be considered also in larger extent. In next chapter
the related research is illuminated. Chapter three
shows how the study is conducted and how the
material was gathered. Chapter four presents the
results. Chapter five discusses the meaning of the
previous, and chapter six concludes the research.
This research provides new knowledge on KBM
in project networks. Research on interorganizational
KM or KBM in project networks is quite narrow
(Agostini et al. 2020). This research took a quite wide
perspective on KBM, not focusing only on
information sharing or protection. In addition, we
focus on a specific type of project network in which
customer organization has a key role. The
practitioners can derive ideas for developing KBM in
their project network, whether they represent a
customer organization or a project company.
2 RELATED RESEARCH
2.1 Knowledge-based Management
Factors, such as reducing resources, citizens’
expectations, and public pressure give the need to
constantly develop the operations (Gunasekaran
2005; Hellsten and Pekkola 2019). In today’s public
sector, the objective for KM is to provide means to
better understand the needs of the people on all levels
but also to offer the inhabitants of the city with better
and more inclusive services in the most resource-
efficient and sustainable way, in addition to mere
improving the operation. (Hellsten et al. 2021).
According to Wiig (1997) knowledge management
(KM) aims to improve organizations' effectiveness
and performance by stressing the importance of
knowledge creation, development, management, and
finally, leveraging. KM is an umbrella term of
understanding, defining and utilizing available
knowledge that provides the decision-makers a useful
tool for managing their organizations (Moss 1999).
KBM, on the other hand, is defined as an approach in
which organisational knowledge assetts, including
data, information and knowledge, is processed and
utilised to support decision-making. KBM is about
KM policies, practices and processes that are
understood as managerial practices designed to
support effective and productive information
management for the benefit of the organisation
(Inkinen 2016). Jalonen (2015) says it aims to reduce
uncertainty due to lack of information and to manage
the ambiguity arising from the amount of
information.
Knowledge is processed from data through
information into knowledge. One way to structure
knowledge process is the process model of
information management created by Choo (2002).
The model consists of six phases. It starts by defining
information needs to later be satisfied as efficiently as
possible by information acquisition from both
internal and external information sources. The
model’s third phase is information organisation and
storing. The following phases relate to information
analysis for systematic and advanced information
products or service, information sharing and usage.
State of Knowledge-based Management in Project Networks: Case in Finnish Infrastructure Construction Sector
127
After the latter, possible changes in the organisational
activities take place and the cycle starts over.
Choo’s model forms a basis for Jääskeläinen et
al.’s (2022) maturity model designed for information
and knowledge management (IKM) in public sector.
The IKM expands Choo’s model from both the
technical side of information handling and the
utilization of the information by humans
(Jääskeläinen et al. 2022). Jääskeläinen et al. add
sections called Vision & strategy and Governance and
organisation to their model. The IKM offers useful
and practical way to determine the state of an
organization’s information and knowledge
management and identify development needs
(Jääskeläinen et al. 2022). Later on Choo’s model
phases are called sections which consist of KBM
practices.
2.2 Knowledge-based Management in
Project Network
Projects are temporary systems formed by individuals
or organizational actors to accomplish complex and
unique tasks (Lundin & Söderholm 1995; Obstfeld
2012). An interorganizational network working on a
common project can be called a project network (Alin
et al. 2013). Because of the complexity, uniqueness,
and uncertainty of project activities, they require
increased focus on KBM (Ajmal et al. 2010). Projects
involving multiple organizations have become
increasingly important (Bakker 2011) which creates
additional challenges for knowledge sharing:
organizations need to balance between the risks and
benefits of knowledge sharing, the information
systems might be misaligned, and employees might
not share their knowledge in the network (Vuori et al.
2019).
Riege (2005) has identified dozens of barriers for
knowledge sharing, in individual, organizational and
technological levels. These barriers include e.g., lack
of time, low awareness on the value of the knowledge
possessed, fear of losing expert status when sharing
knowledge, differences in experience levels, lack of
leadership, missing integration of KM strategy and
business strategy, internal competitiveness,
inadequate IT systems, a mismatch with employees
needs and the tools, and lack of training. Vuori et al.
(2019) built on Riege’s (2005) model with the
purpose to leverage it to network level. They found
that Riege’s barriers are relevant in the network level
and there are also network-specific barriers in
addition. They suggest that geographical or cultural
distance, strength of the organizational ties and trust,
value positioned on the interorganizational
knowledge all have an important role in the network
level.
Knowledge-based theory argues that
organisations’ success depends strongly on their
knowledge-based resources (Grant, 1996; Spender
and Grant, 1996). The early studies on KM focused
on the intra-organizational level (Nonaka 1994,
Nonaka and Takeuchi 1995, Grant 1996). The interest
for interorganizational KM or KBM in networks has
followed as the value of interorganizational
relationships for accessing and combining knowledge
has been recognized (e.g., Buckley et al. 2009).
External partners have an increasingly important role
in filling internal knowledge gaps (Bojica et al. 2018)
and to benefit from the knowledge partners acquire,
organizations need to manage and align inbound
knowledge flows with the internal activities
(Brunswicker and Vanhaverbeke 2015). KBM in
networks has become increasingly important, as it can
be defined as managing the acquisition, sharing, and
co-creation of knowledge between organizations
(Lancini 2015), which enables organizations to
benefit from the knowledge in the network.
The focus on interorganizational KM research has
been narrow, concentrating mainly on specific types
of interorganizational relationships, knowledge
transfer among organizations and on knowledge
protection (Agostini et al. 2020). There are challenges
in capturing and reusing knowledge produced in
projects, and in utilizing the lesson’s learned.
Bhargav and Koskela (2009) suggest that KBM in
project networks can be effective in capturing project-
based knowledge, if it includes top management
support, an easy-to-use KM system, and creating the
right environment for knowledge sharing. The
strategies for knowledge management, information
technology and business need to be aligned to achieve
KBM objectives (Wang and Wang 2009). As
Omotayo (2015) puts it, if people are willing to share
knowledge, technology can enable a further reach.
However, applied tools and systems only won’t get
people to share their knowledge.
3 METHODS
The research was conducted by distributing a
maturity survey on KBM to 22 Finnish organizations
in infrastructure construction sector. These
organizations represent the three stages of
infrastructure construction: design, construction and
maintenance. 10 of these organizations are customer
organizations and 12 are project companies. In total,
we received 68 responses to this survey. The survey
is based on maturity survey on information and
knowledge management by Jääskeläinen et al.
KMIS 2022 - 14th International Conference on Knowledge Management and Information Systems
128
(2022). The survey includes eight different sections
on KBM: vision and strategy of an organization (A),
governance and organization of a project (B),
information needs in a project (C), information
acquisition in a project (D), information organization
and storage in a project (E), information products in a
project (F), information and knowledge sharing in a
project (G) and information usage in a project (H).
Each of these sections included between five and ten
statements on the development of practices. In
addition, each section included one statement
concerning the satisfaction to these practices. The
respondents chose in Likert scale if they strongly or
somewhat disagreed, neither disagreed nor agreed,
somewhat or strongly agreed, or didn’t want to
respond the statement. In addition, each section
included an open question, where respondents could
describe their thoughts more freely.
Figure 2: A framework for analyzing maturity survey on
KBM (Jääskeläinen et al. 2022).
Since the intervals between the Likert scale values
are not equal (Cohen et al. 2007), the responses were
grouped to two categories: agree and disagree. The
distribution of responses between these two
categories was calculated as a percentage while
leaving out the neutral responses. The responses
agreeing with the development of each KBM section
were based on five to ten statements each, and the
percentages representing the satisfied were based on
a single statement. When responses are distributed
equally between satisfied and dissatisfied, or
agreement and disagreement, the responses are
interpreted as dissatisfied and disagreement, as there
is a significant amount of respondents not satisfied
with the practices or thinking the practices are not
developed.
The results are analyzed using a framework
suggested for this maturity survey by Jääskeläinen et
al. (2022). The framework is a matrix with four
categories: novice, facilitator, experimenter, and
advanced exploiter (see figure 2). Jääskeläinen et al.
(2022) present the novice as having the practices in a
rather primitive level and suggest that these practices
should be prioritized in development. Facilitator
describes those practices that may not be very
developed but meet the needs of the organization.
Practices that fall into the experimenter area are
developed and even novel, but not implemented fully.
Advanced exploiter is described as the desired
situation: the practices are advanced and exploited. In
section 5, each section of KBM will be placed on this
framework separately for customer organizations,
and for project companies.
4 RESULTS
The results are presented in three tables. Table 1
presents the percentage of responses in agreement
with the development of the KBM. Table 2 presents
the percentages of respondents who were satisfied
with each section of KBM. Table 3 gathers the open
answers.
Table 1: The percentage of responses in agreement with the development of the KBM practices.
Sections of KBM
Customer or
g
anizations Pro
j
ect com
p
anies
A. Vision an
d
strate
gy
of an or
g
anization
66% 88%
B. Governance and or
g
anization of a
p
ro
j
ect
47% 61%
C. Information needs in a
p
ro
j
ect
57% 78%
D. Information ac
q
uisition in a
p
ro
j
ect
71% 70%
E. Information or
anization and stora
e in a
ro
ect 52% 62%
F. Information
p
roducts in a
p
ro
j
ect
45% 61%
G. Information and knowled
g
e sharin
g
in a
p
ro
j
ect 59% 69%
H. Information usa
g
e in a
p
ro
j
ect 62% 86%
State of Knowledge-based Management in Project Networks: Case in Finnish Infrastructure Construction Sector
129
Table 2: The percentage of respondents who were satisfied with the KBM practices.
Challenges Customer organizations Project companies
Difficulty of implementing practices 9 1
Insufficient skills 4 4
Insufficient resources 3 1
Lack of common practices 11 4
Undefined responsibilities 2 6
Inadequate information systems and interfaces 3 1
Inadequate information management processes 5 13
Inadequate information products 2 0
Undefined information needs (of one’s own organization) 7 1
Undefined information needs (of other organizations) 2 5
Sharing implicit knowledge 1 2
Table 3: Challenges mentioned in open-ended questions.
Sections of KBM Customer organizations Project companies
A. Vision and strategy of an organization 52% 59%
B. Governance and organization of a project 21% 50%
C. Information needs in a project 36% 62%
D. Information acquisition in a project 36% 65%
E. Information organization and storage in a project 38% 54%
F. Information products in a project 33% 73%
G. Information and knowledge sharing in a project 44% 64%
H. Information usage in a project 54% 65%
As shown in table 1, the respondents in customer
organizations are mostly agreeing with the
development of the practices in KBM. However, they
are clearly agreeing only on the development of the
practices in information acquisition. The sections of
governance and organization of projects and the
creation and usage of information products seem to
have undeveloped practices.
The project companies’ respondents are
significantly agreeing with the development of the
practices in most of the sections. The lowest
development of the practices seems to be in
governance and organization of projects, information
storage, and the usage of information products.
However, even these sections have more than 60% of
the respondents thinking the practices are developed.
Whereas the respondents in customer organizations
had more than 60% agreeing with the practice
development in only three sections.
Table 2 shows that customer organizations’
respondents were only satisfied with the practices
regarding organizational strategy, and information
usage. And even with these sections, the percentage
of satisfied respondents is only slightly more than
50%. The least satisfied they are with the practices in
governance and organization of projects.
Respondents in project companies are clearly
more satisfied with the KBM practices than their
counterparts in the customer organizations. They are
quite significantly satisfied with the usage of
information products, and slightly dissatisfied with
governance and organization of projects. With the
other sections, they are satisfied.
A significant number of respondents from
customer organizations reported challenges with
implementation, and a lack of common practices.
Multiple respondents mentioned that there is a lot of
development done in strategic level, but the practices
do not change in operational level. However, reasons
for this difficulty were not reported and therefore it is
not possible to state if this results from resistance to
change, insufficient efforts to implement the
practices, or other reasons. Lack of common practices
includes working in siloes, which results in time-
consuming information acquisition. In addition,
respondents mentioned not having rights to all
information they need, which increases the
fragmentation of work in the network. Lack of
common practices makes it also more difficult to
share information, as reported by the respondents.
Undefined information needs of the customer
organization were reported by the respondents from
both categories of organizations. It seems that the
undefined information needs of customer
organization creates challenges to gathering
information in both kinds of organizations.
Interestingly, same challenge in project companies
KMIS 2022 - 14th International Conference on Knowledge Management and Information Systems
130
was not reported as many times by respondents in
either one of the categories of organizations.
Some respondents from project companies
mentioned that customer organizations do not
understand their information needs. This challenge
was not identified by customer organizations as it was
not mentioned even once. One respondent stated that
as customer organization has not identified their own
information needs, it is difficult to define roles and
responsibilities in the project company side too.
Another responder claimed it's the other way around:
if the roles and responsibilities are not clear, the
information needs cannot be clearly defined either.
Thus, the unidentified information needs, and unclear
roles and responsibilities seem to be connected, even
if the cause-and-effect relationship is unclear.
Respondents from project companies stressed the
central role of the customer organization in multiple
other responses too, including the mentions of
inadequate information management processes.
Information gets disorganized and stored in multiple
different locations, which results in information
getting outdated and disappeared. The respondents
from project companies highlight how the
information acquisition is even more difficult when
it’s managed by customer organization. Respondents
from the customers side did not stress the role of
other organizations in information management.
Another difference between customer organizations,
and project companies, is that the latter reported
insufficient skills mainly related to information
products whereas the first reported insufficient skills
relating to KBM.
5 DISCUSSION
The results are visually presented in figure 3. This
figure shows how the KBM practices are less
developed in customer organizations than in project
companies. The most striking is the difference of
satisfaction with these practices: respondents from
customer organizations are mostly dissatisfied with
KBM practices whereas other respondents are mostly
satisfied. Jääskeläinen et al. (2022) state that the
organizations with high employee satisfaction to
KBM practices have in common that they link their
KBM better to strategy (A) and have better structures
supporting KBM (B), more advanced information
products (F), and better systems and processes for
storing information (E). This seems to apply for
project companies too.
As presented in figure 3, customer organizations
can be interpreted as experimenters with novice
tendencies. According to Jääskeläinen et al. (2022),
for experimenter and novice organizations it is
essential to focus on aligning their KBM practices
with their strategy i.e., implementing the practices that
have been developed in a strategic level. The difficulty
of implementing practices was also mentioned by
multiple respondents in the open answers. The
misalignment of KBM and business strategies, and
technology are known barriers for knowledge sharing
(Riege 2005; Wang and Wang 2009). The whole
project network would benefit if customer
organizations would also focus on identifying their
information needs (C) as it was reported as insufficient
by both categories of organizations. Diversified and
systematic fulfilment of information needs facilitates
decision-making (Hellsten and Myllärniemi 2019) and
helps organization-wide knowledge management.
Figure 3: KBM in customer organizations and project companies.
State of Knowledge-based Management in Project Networks: Case in Finnish Infrastructure Construction Sector
131
Project companies can be interpreted as advanced
exploiters with experimenter-level project
governance and organization (B). Advanced
exploiters have advanced KBM practices and can
exploit them fully (Jääskeläinen et al. 2022). Project
companies should focus on better governance and
organization of projects (B), including allocating
more resources to KBM and especially having more
defined roles and responsibilities. However, the open
answers highlighted how difficult it is to improve
these practices without cooperation with customer
organization. It seems that for project companies the
priority is to define common practices and processes
with customer organizations to enable better
information and knowledge sharing and acquisition.
KBM in project networks is cooperation, i.e.,
organizations need to align their internal activities
(Bruswicker and Vanhaverbeke 2015) and
communicate actively in the network (Vuori et al.
2019), in order to achieve fluent knowledge sharing
and acquisition. Especially the respondents from
project companies highlighted the importance of the
cooperation with customer organization in their open
answers. To make the change, organization and
governance in common projects need to develop
further: the importance of information and knowledge
sharing needs to be made clear for everyone, and time
and resources must be allocated sufficiently (Riege
2005). The respondents from both categories of
organizations reported that the information
management would be of better quality if there was
enough time to do it properly. The misalignment of
IT-systems is also noted by the respondents and
authors such as Vuori et al. (2019) and Riege (2005).
6 CONCLUSIONS
As reported in this research and by others (e.g.
Bhargav and Koskela 2009; Lancini 2015; Bojica et
al. 2018; Agostini et al. 2020) the interorganizational
cooperation is key for successful KBM in project
networks. Organizations cannot operate alone, and
internal knowledge gaps need to be increasingly filled
by cooperating with external partners (Bojica et al.
2018). This research has also shown that customer
organizations have a key role in developing KBM
further in project network. If they manage to fully
exploit their KBM practices, they can improve KBM
in project companies too in their common projects
Project companies should invest especially on
communication and cooperation with customer
organizations. By frequently communicating with the
customer organization, they can be more aware of the
customers’ information needs. Since project
companies have more developed practices, they could
take a more proactive role in information
management in their common projects.
This research provided more insight on KBM in
project network. According to Agostini et al. (2020)
research on interorganizational KM or KBM in
project networks is quite narrow, by focusing on
specific types of interorganizational relationships,
knowledge transfer among organizations and on
knowledge protection. This research took a quite
wide perspective on KBM and we had a specific type
of project network in which customer organization
has a key role, which doesn’t seem to be a much-
studied network in this field. We were able to
discover how important the customer organization’s
role is in a poject network.
The practical community can derive ideas for
developing KBM in their project network, whether
they represent a customer organization or a project
company. This research is also part of a research
programme ProDigial, which aims for further
digitalization initiatives and increased productivity in
Finnish infrastructure construction sector. Our
practical contribution from this research programme
is a guide for customer organizations to develop
KBM in their project networks.
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