Importance of Tacit Knowledge towards Company Performance and Its Relevance to Construction

Valuable human and knowledge resources will be wasted unless organisations make better use of these prime resources. Tacit knowledge in particular is still considered to be relatively unexplored and proper understanding and management of this resource is of immense importance for better organisational performance. The research addresses the importance of people factor and tacit knowledge in construction and examines the contribution towards the company performance and achievement of competitive advantage through a thorough literature review. Principle insights of dominant views on organisational resources are discussed to highlight the strategic nature of tacit knowledge. Labour and knowledge intensive nature of the construction industry is revealed and finally the importance and the significant role of people factor and tacit knowledge in construction are highlighted. This provides the basis for more empirical research on finding importance of tacit knowledge towards organisational performance in the construction industry.