CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The Nigerian Construction Industry (NCI) is often described as having far more potential than its present performance shows. Construction projects are typically complex, involve many stakeholders and carry substantial risk, which makes project delays, cost overruns and other problems common (Adeyemi & Adegbembo, 2023). Evidence on how Nigerian firms organise their knowledge suggests that these problems are partly organisational. In a survey of Nigerian indigenous contractors, Rasheed et al. (2019) found that management's strategic plan to adopt knowledge management (KM) and the training of personnel were highly prioritised, yet a mechanism for storing and retrieving knowledge was absent in 98% of the firms sampled. They concluded that the contractors were not yet prepared to adopt KM, although they were willing to explore its benefits. For this reason, researchers and professional bodies have continued to recommend KM as a way to improve service delivery in the industry.

KM is generally understood as the process through which an organisation creates, acquires, transfers, stores and uses knowledge for its benefit. Recent developments in these practices have been driven largely by the application of information technology to construction (Adeyemi & Adegbembo, 2023). Construction consulting firms, such as architectural, quantity surveying, structural engineering and electrical and mechanical engineering practices, are knowledge-intensive service providers because their output depends mainly on the expertise of their professionals. Their capacity to capture, share and reuse knowledge across projects therefore has direct consequences for the quality, speed and cost of the services they deliver.

Whether an organisation adopts KM depends on many factors, and leadership is among the most frequently studied. Leadership is the process by which an individual influences and supports others in achieving shared goals. The full-range model of leadership distinguishes three broad behaviours: transformational leadership, in which leaders inspire followers and encourage innovation and change; transactional leadership, which rests on rewards, rule compliance and the maintenance of stability; and laissez-faire leadership, which is passive and avoids active involvement (Avolio et al., 1999). Transformational leadership is generally viewed as more receptive to change initiatives, including KM, whereas transactional leadership focuses on control and compliance, and laissez-faire leadership is considered the least effective.

Empirical studies outside construction support the idea that leadership style shapes KM. Chung and Espinoza (2023) found that transformational leadership had a significant positive effect on KM among managerial staff in Peruvian public universities, and that organisational culture moderated this relationship. Jiang and Chen (2018) studied how transformational leadership helps teams integrate knowledge activities to achieve innovation, and Firmansyah et al. (2022) examined transformational leadership alongside KM and learning organisation in relation to organisational performance. A systematic review by Al Amiri et al. (2020) also examined the relationship between leadership styles and KM activities. In Nigeria, Ugwu and Okore (2019) investigated the influence of transformational and transactional leadership on the KM activities of university librarians. Within construction, Tennakoon et al. (2022) have shown interest in how organisational culture affects KM in building information modelling environments.

Despite this broader literature, less is known about the leadership behaviours that prevail in Nigerian construction consulting firms and how they relate to KM practice. Because KM implementation depends on the commitment, attitudes and active support of management, assessing leadership behaviour is a sensible starting point for understanding whether these firms are ready to adopt KM. This study therefore investigates the adoption of KM in the NCI with a view to improving service delivery, by examining the leadership behaviours of consulting firms and their relationship with KM practice.

1.2 Statement of the Problem

Researchers have recommended KM as a means of improving service delivery in the NCI, and available evidence indicates that Nigerian construction firms are still at an early stage of adoption. Rasheed et al. (2019) found that indigenous contractors lacked mechanisms for storing and retrieving knowledge, and Adeyemi and Adegbembo (2023) note that effective KM is needed to reduce the delays and cost overruns that affect the industry.

Leadership appears to be a central condition for KM success, since transformational leadership has been shown to promote KM in other settings (Chung & Espinoza, 2023), and organisational leaders decide whether KM initiatives are funded, encouraged and sustained. However, it is not clear whether consulting firms in the NCI exhibit the leadership behaviours that support KM, or how those behaviours relate to KM practice in the firms. Without this evidence, efforts to promote KM in the industry may overlook the leadership conditions needed for them to succeed. This provides the motivation for the present investigation.

1.3 Need for the Study

The study is needed to show empirically whether Nigerian consulting firms possess the leadership behaviours that will enhance the adoption of KM practice in the NCI. Once the state of the industry in relation to KM adoption is known, efforts to improve service delivery can be better targeted.

The study is also needed because poor management of knowledge contributes to rework, delays, mistakes and cost overruns on construction projects, and these can be reduced when knowledge is captured and reused effectively (Adeyemi & Adegbembo, 2023). Construction consulting firms, in particular, need a well-developed KM system to capture, develop, maintain and renew their intangible assets, including the skills and experience of their professionals. Finally, KM deserves attention as a way of making proper use of employees' knowledge and skills, and understanding the role of leadership in this process will help firms to achieve it.

1.4 Aim and Objectives

1.4.1 Aim

The aim of this study is to investigate the adoption of knowledge management (KM) in the Nigerian construction industry with a view to improving service delivery.

1.4.2 Objectives

The objectives of the study are to:

1. identify the attributes of leadership behaviours and knowledge management;
2. establish the leadership behaviours exhibited by consulting firms in the NCI;
3. establish whether consulting firms in the NCI exhibit knowledge management practice; and
4. examine the relationship between leadership behaviours and knowledge management.

1.5 Hypotheses

Transformational leadership

• H0: There is no relationship between transformational leadership and knowledge management in consulting firms.
• H1: There is a relationship between transformational leadership and knowledge management in consulting firms.

Transactional leadership

• H0: There is no relationship between transactional leadership and knowledge management in consulting firms.
• H1: There is a relationship between transactional leadership and knowledge management in consulting firms.

Laissez-faire leadership

• H0: There is no relationship between laissez-faire leadership and knowledge management in consulting firms.
• H1: There is a relationship between laissez-faire leadership and knowledge management in consulting firms.

1.6 Scope and Limitations

1.6.1 Scope

The study focuses on consulting firms in the NCI, namely architectural, quantity surveying, structural engineering, and electrical and mechanical engineering practices. Data were obtained from construction consulting firms based in Kaduna and Abuja, Nigeria. Consulting firms were chosen because they are knowledge-intensive service providers. Leadership behaviour was measured with the Multifactor Leadership Questionnaire (MLQ) Form 5X (Avolio & Bass, 2004), and only transformational, transactional and laissez-faire behaviours were considered. KM practice was measured using sample questions from the Knowledge Management Inventory, a typology of personal KM categories (Gamble & Blackwell, 2001).

1.6.2 Limitations

1. Questionnaire format. A structured questionnaire is not the most flexible way of obtaining responses, and when handled improperly it may be vulnerable to statistical error.
2. Sampling and weighting. Misuse of sampling and weighting can undermine the accuracy, validity and projectability of a quantitative study.
3. Generalisability. The knowledge produced may be too general for direct application to specific local situations, contexts and individual consulting firms.
4. Systematic sampling. The systematic sampling used in the study may lose vital information from the population.

References

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Al Amiri, N., Abdul Rahim, R., & Ahmed, G. (2020). Leadership styles and organizational knowledge management activities: A systematic review. Gadjah Mada International Journal of Business, 22(3), 250–275.

Avolio, B. J., & Bass, B. M. (2004). Multifactor leadership questionnaire: Manual and sampler set (3rd ed.). Mind Garden.

Avolio, B. J., Bass, B. M., & Jung, D. I. (1999). Re-examining the components of transformational and transactional leadership using the Multifactor Leadership Questionnaire. Journal of Occupational and Organizational Psychology, 72(4), 441–462. https://doi.org/10.1348/096317999166789

Chung, V., & Espinoza, J. (2023). Relationship between transformational leadership and knowledge management: The moderating effect of organizational culture. Knowledge and Performance Management, 7(1), 138–149. https://doi.org/10.21511/kpm.07(1).2023.11

Firmansyah, A., Chen, M.-H., Junaedi, I. W. R., Arwani, M., & Kistyanto, A. (2022). The role of transformational leadership and knowledge management and learning organization on vocational schools performance during digital era. Frontiers in Psychology, 13, Article 895341. https://doi.org/10.3389/fpsyg.2022.895341

Gamble, P. R., & Blackwell, J. (2001). Knowledge management: A state of the art guide. Kogan Page.

Jiang, Y., & Chen, C. C. (2018). Integrating knowledge activities for team innovation: Effects of transformational leadership. Journal of Management, 44(5), 1819–1847. https://doi.org/10.1177/0149206316628641

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Tennakoon, T. M. M. P., Kulatunga, U., & Jayasena, H. S. (2022). Organisational culture on knowledge management in BIM-enabled construction environments. VINE Journal of Information and Knowledge Management Systems, 52(2), 224–242.

Ugwu, C. I., & Okore, A. M. (2019). Transformational and transactional leadership influence on knowledge management activities of librarians in university libraries in Nigeria. Journal of Librarianship and Information Science, 52(3), 864–879. https://doi.org/10.1177/0961000619880229