Impact of Cost-Based Factors on the Deployment of Cost-Based Knowledge Management in Nigerian Construction Firms

Abstract

Deploying cost-based knowledge management (CKM) by Nigerian construction firms (NCFs) requires knowledge of the impact cost-based factors exert on the adoption capacity of NCFs and the implementation processes of CKM. This study aims to assess the impact cost-based factors exert on the CKM adoption capacity of NCFs and the CKM implementation processes towards a complete deployment of CKM by NCFs. This study addresses the knowledge gap on cost-based factors for CKM deployment. It brings coherence to their impact on CKM adoption and implementation in the construction sector. Also, NCFs suffer revenue losses from poor cost performance on large projects. Deploying innovative Cost Management (CM) methods such as CKM can improve cost performance. A quantitative research design deployed a systematic random survey of NCFs with expertise in transport infrastructure projects to generate data for the study. Structured questionnaires were administered to NCFs, and principal component analysis extracted variables for the study. The average commonalities and Spearman’s correlation coefficients explained the factors' impact on CKM deployment. CKM adoption capacity in NCFs is impacted by funding/financial resources, tangible and intangible expenditures, and construction project costs. Whereas, for CKM implementation, in addition to the factors mentioned earlier, budget limitations and cost of knowledge combined significantly impact the implementation processes. The study concluded that cost-based factors exist in the construction sector, and they significantly impact CKM deployment. The study recommended that NCFs prioritise cost-based and other factors when strategising for CKM deployment.