Testing impact of knowledge characteristics and relationship ties on project performance

Purpose – The aim of this paper is to empirically test and find the correlation between knowledge characteristics and relationship ties on project performance. Design/methodology/approach – Data were collected via personal interviews based on a structured survey of project managers in a knowledge‐intensive firm. The data were analyzed using a multiple regression model. Findings – The results show that project performance was positively related to the frequency and closeness of source, and difficulty of the “knowledge element” described in the survey. Interestingly, against the prevalent view, the source and the level of tacitness of the knowledge element were not found to be significant. Research limitations/implications – Data are limited to specific corporate setting and variables are not exhaustive, despite the fact that this study includes the most theoretically interesting variables. One implication is that strong ties to a knowledge element source are important for project success, but distinctions between internal and external sources, and degree of codification, are not. Practical implications – This study also implies that, in this day and age of knowledge management and chief knowledge officers, most of the important knowledge may already have been codified inside the firm, thus alleviating the past focus on transfer of tacit knowledge. This fact also implies that firms that are left behind in terms of managing their knowledge inside the firm stand to lose a lot more since the other firms are managing their own knowledge base better. Originality/value – This paper incorporates and empirically tests most of the variables considered important to theoreticians and practitioners in the realm of knowledge management and network theory. The latter theory is important in the field of knowledge management because it offers the link and medium in which knowledge travels and transfers.