Analysis of the Influence of Knowledge Management and Lean Management on the Performance of Construction Projects

Authors : Yuddy Slamet Rasidi; Tri Joko Wahyu Adi

Volume/Issue : Volume 7 - 2022, Issue 9 - September

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The construction industry is growing rapidly with highly competitive pressures. In today's global competition, construction companies must be able to compete to meet customer demand and satisfaction. Responding to the fierce competition in the construction industry in Indonesia, the Ministry of SOEs formed a Project Management Office (PMO) consisting of 6 stateowned companies. The formation of a PMO in a SOE company is expected to be able to increase its competitiveness which is "estimated" to be achieved through the application of Knowledge Management and Lean Management. Cost, Quality, Time or commonly called the “iron triangle” is an instrument that is often used as evaluation material in the construction industry to measure the productivity of a construction project. The lean management approach is expected to increase productivity in terms of Cost, Quality and Time. On the other hand, the knowledge management process in the organization is able to increase core competencies, accelerate innovation and time-to-market, and be able to build a sustainable competitive advantage. This study aims to analyze the effect of knowledge management on construction project performance, analyze the effect of knowledge management on lean management, analyze the effect of lean management on construction project performance and analyze whether lean management mediates the influence between knowledge management and construction project performance. In this study questionnaires were used for the collection of primary data. Research variables and indicators are obtained through in-depth literature review. The questionnaire was distributed to project managers and construction practitioners of state-owned companies’ members of the PMO then the data obtained were analyzed using PLS-SEM (Partial Least Square – Structural Equation Modelling). The results showed that the knowledge management variable did not have a significant influence on the performance variables of construction projects, however, the knowledge management variable has a positive and significant influence on the lean management variable, then the lean management variable has a positive and significant influence on the construction project performance variable and the lean management variable as an intervening variable is able to mediate the influence of knowledge management on the construction project performance variable.

Keywords : Knowledge Management, Lean Management, Construction Project Performance, Partial Least-squares Structural Equation Modeling (PLS-SEM).


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