THE IMPACT OF KNOWLEDGE MANAGEMENT ON PROJECT SUCCESS EMHEMED ABOU BAKER ARAFA SUBMITTED IN FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTORATE IN BUSINESS ADMINISTRATION UNIVERSITY OF PORTSMOUTH BUSINESS SCHOOL SUPERVISORS: PROFESSOR ASHRAF LABIB DR. ANDREW LEE OCTOBER, 2015 Declaration I declare that this thesis has not been submitted in whole or in part to any university as part of degree. I further declare that, except where reference is made in the text, the contents are entirely my own work. The author agrees that the library may lend or copy the thesis upon request for study purposes, subject to the normal conditions of acknowledgement. Emhemed Arafa October, 2015 i ABSTRACT The loss of experienced employees in project organisation leads to the loss of valuable knowledge and experience gained over many years. Knowledge management (KM) has the ability to challenge this situation. This research study is focused on the field of knowledge management in Engineering, Procurement and Construction (EPC) type contracts in Libyan oil and gas industry projects. The research study aims to put forward guidance on how KM should be implemented in practice as a convincing case for the oil and gas construction industry. Adopting a practical «in project environment» KM scheme is a means of becoming more efficient, with greater ability to continuously learn and adapt in a dynamic mode. In Libya’s oil and gas industry, and in particular, in project development, there has been very little guidance on how KM should be implemented in practice. The existing available KM mostly takes the form of tacit knowledge and almost none was identified as explicit knowledge. Emergent in nature, the research work is comprised of three phases: initial interviews, case study «A», and case study «B». Each of the phases was combined with a review of relevant literature, primary research (including interviews, questionnaires, case studies and action research) and grounded theory in analytical processes. Phase (1) - Initial interviews were conducted with project managers and senior managers from three different oil and gas companies; many gaps were identified by investigating issues related to KM. It was evident that KM within the projects organisation was kept in tacit format by individuals. Phase (2) - Case study (A): Review and analysis of a KM implementation initiative made by a Project Manager (PM) with his team between 2006-2008, was found to be not successful and non-contributory in real-world terms, but in academic terms it gives an opportunity to identify and evaluate challenges to be faced in adopting a KM model in organisations. The role of the Projects Department emerged as essential in the articulation of KM between project and organisation. ii Phase (3) - Case study B: The researcher was involved through a live EPC project, making observations and organising interviews when necessary and analyse the created knowledge life cycle during the project. The research gives much attention to the phenomena of knowledge development during an EPC project; the knowledge created in any of the project phases will take a different shape due to the technical development of the project work from one phase to the next; as such, if the project is not tracked during its development, it will lose its context and dramatically decrease the effectiveness of its re-usability in subsequent project phases and new projects within the organisation. The added value of this research is the development of a practical organisational model for managing effectively the knowledge created during projects execution, based on an integrated, optimised, and suitable lessons learned tracking system. iii Acknowledgements It would have been impossible to complete this research work without the support of my family, my mother, my wife and my children who gave me all their encouragement and a peaceful environment in which to do my research, as well as their patience for the six years of the study. This would simply not have been possible without the support of my family. In this regard, I would like to sincerely thank my supervisors, Professor Ashraf Labib and Dr Andrew Lee, who provided me with tremendous support and guidance throughout this learning experience; the opportunities afforded to me over the past six years are greatly appreciated. I would also like to express my gratitude to the numerous organisations and individuals within the Libyan oil and gas sector who participated in the research and gave their time willingly to share their knowledge and experiences, particularly those who opened doors and provided access to information about their projects. To each and every one who has influenced in my life … I’m sincerely grateful. iv List of Abbreviations List of Abbreviations CSF : Critical Success Factors EPC : Engineering Procurement Construction EPIC : Engineering, Procurement, Installation and Commissioning GIL : Global Information Link HR : Human Resources ICT : Information and Communication Technology K : Knowledge KCI : K creation initiative KCIC : K creation initiative captured KCINT : K creation initiative not tracked KCIL : K creation initiative lost KDD : Knowledge Discovery in Data KM : Knowledge Management LL : Lessons Learned LPE : Lead Project Engineer NOC : National Oil Company PM : Project Manager PMAJ : Project Management Association of Japan PMBOK : Project Management Body of Knowledge Guide PMI : Project Management Institute SPI : Society for Petroleum Engineers TKCI : Total K creation initiative v CONTENTS Acknowledgements ................................................................................................................... iv Chapter 1 ................................................................................................................................. 10 1.1 Motivation for focusing this study on the oil and gas industry, in particular, in Libya 13 1.2 Motivation for focusing this study on project development, in particular, the EPC project type ................................................................................................................... 14 1.3 Personal motivation for this study ................................................................................. 15 1.4 Objectives and structure of the thesis ............................................................................ 16 1.5 Research questions ........................................................................................................ 17 1.6 Research scope and limitations ..................................................................................... 19 1.7 Structure of the thesis .................................................................................................... 20 1.8 Summary ....................................................................................................................... 25 Chapter 2 ................................................................................................................................. 26 2 Literature review ........................................................................................................... 27 2.1 KM in oil and gas industry ............................................................................................ 27 2.1.1 KM in international oil and gas companies ................................................................... 27 2.1.2 KM in Libyan oil and gas companies ............................................................................ 28 2.2 History of Knowledge Management ............................................................................. 29 2.3 Knowledge definition .................................................................................................... 30 2.4 Knowledge dimensions ................................................................................................. 31 2.5 Knowledge management process (Add K conversion of Nonaka) ............................... 35 2.6 KM implementation in the construction and oil sectors................................................ 39 2.6.1 Critical success factors of KM implementation: ........................................................... 41 2.6.2 K implementation barriers ............................................................................................. 45 2.6.3 Role of HRM ................................................................................................................. 47 2.6.4 Role of ICT .................................................................................................................... 49 2.7 KM in project organisation ........................................................................................... 50 2.7.1 Projects and project management .................................................................................. 50 2.7.2 EPC projects .................................................................................................................. 53 2.7.3 Project success ............................................................................................................... 55 2.7.4 Project Knowledge Management .................................................................................. 57 2.7.5 Temporary and permanent organisations» knowledge management ............................ 58 2.7.6 KM and PM ................................................................................................................... 59 2.7.7 Project knowledge management models ....................................................................... 62 2.7.7.1 Lessons learned (LL) .................................................................................................... 65 2.7.7.2 LL process .................................................................................................................... 65 2.7.7.3 Effective lessons learned .............................................................................................. 68 vi 2.7.7.4 LL in EPC projects ....................................................................................................... 68 2.7.8 Limitations in the current knowledge management theories ........................................ 69 Chapter 3 ................................................................................................................................. 71 3 Research methodology .................................................................................................. 72 3.1 Research emerging phases ............................................................................................ 72 3.2 Justification of research methodology ........................................................................... 76 3.2.1 Selection of research philosophy ................................................................................... 77 3.2.1.1 The Interpretivist philosophical paradigm ................................................................... 77 3.2.2 Selecting research approach and strategies ................................................................... 80 3.2.2.1 Grounded theory ........................................................................................................... 82 3.2.2.2 Case study .................................................................................................................... 90 3.2.2.3 Action research ............................................................................................................. 90 3.2.3 Selecting research methods ........................................................................................... 92 3.2.3.1 Mixed methods ............................................................................................................. 92 3.2.4 Selection of data collection techniques and procedures ................................................ 94 3.2.5 Data recording and validation procedures ..................................................................... 97 3.2.6 Sampling and ethical considerations ............................................................................. 98 3.2.7 Selection of data analysis technique and procedures .................................................. 100 3.2.7.1 Open coding ............................................................................................................... 100 3.2.7.2 Axial coding ............................................................................................................... 101 3.2.7.3 Selective coding ......................................................................................................... 102 3.3 Data collection/analysis and the iterative process until theoretical saturation ............ 102 Chapter 4 ............................................................................................................................... 105 4 Initial interviews .......................................................................................................... 106 4.1 Introduction ................................................................................................................. 106 4.2 Sampling ...................................................................................................................... 106 4.3 Data collection ............................................................................................................. 109 4.4 Data analysis and findings ........................................................................................... 111 4.5 Discussion ................................................................................................................... 112 4.5.1 Knowledge definition .................................................................................................. 113 4.5.2 Category 1: Knowledge ............................................................................................... 113 4.5.3 Category 2: Knowledge management process ............................................................ 117 4.5.4 Category 3: Existing learning activities ...................................................................... 119 4.5.5 Category 4: Role of organisation ................................................................................ 123 4.5.6 Individual initiative ..................................................................................................... 124 4.6 Conclusion ................................................................................................................... 125 4.6.1 Responses to research questions ................................................................................. 125 vii 4.6.2 Framework .................................................................................................................. 128 4.6.3 Next phase ................................................................................................................... 129 Chapter 5 ............................................................................................................................... 131 5 Case Study A ............................................................................................................... 132 5.1 Introduction ................................................................................................................. 132 5.2 Step 1 ........................................................................................................................... 136 5.2.1 Sampling ...................................................................................................................... 136 5.2.2 Data collection ............................................................................................................. 137 5.2.3 Data analysis and findings ........................................................................................... 137 5.2.4 Discussion ................................................................................................................... 139 5.3 Step 2 ........................................................................................................................... 141 5.3.1 Data collection ............................................................................................................. 141 5.3.2 Sampling ...................................................................................................................... 142 5.3.3 Data analysis and findings ........................................................................................... 143 5.4 Step 3 ........................................................................................................................... 145 5.4.1 Data collection ............................................................................................................. 145 5.4.2 Sampling ...................................................................................................................... 146 5.4.3 Data analysis ............................................................................................................... 148 5.4.4 Discussion ................................................................................................................... 148 5.5 Conclusion ................................................................................................................... 151 5.5.1 Responses to research questions ................................................................................. 151 5.5.2 Framework .................................................................................................................. 152 5.5.3 Next step ...................................................................................................................... 155 Chapter 6 ............................................................................................................................... 156 6.1 Introduction ................................................................................................................. 157 6.2 First cycle: ................................................................................................................... 161 6.2.1 Data collection: (Focus group) .................................................................................... 161 6.2.2 Sampling: (Lead project engineers and project managers) ......................................... 162 6.2.3 Findings ....................................................................................................................... 162 6.2.4 Discussion ................................................................................................................... 167 6.2.5 Next step ...................................................................................................................... 169 6.3 Second cycle ................................................................................................................ 170 6.3.1 Data collection: (Interviews, observation) .................................................................. 170 6.3.2 Findings ....................................................................................................................... 172 6.3.2.1 Discussion .................................................................................................................. 172 6.4 Conclusion ................................................................................................................... 175 6.4.1 Responses to research questions ................................................................................. 175 viii 6.4.2 Next step ...................................................................................................................... 176 Chapter 7 ............................................................................................................................... 177 7.1 Introduction ................................................................................................................. 178 7.2 Emerging of research paradigms through axial coding ............................................... 178 7.3 Selection of the central paradigm through selective coding ....................................... 180 7.4 Paradigms Integration and Model development .......................................................... 183 7.4.1 LL tracking system development ................................................................................ 184 7.4.2 Practical version of Model .......................................................................................... 187 7.5 Framework Evaluation ................................................................................................ 189 Chapter 8 ............................................................................................................................... 194 8.1 General conclusions .................................................................................................... 195 8.2 Recommendations ....................................................................................................... 196 8.3 Reflection on aim and objectives ................................................................................ 197 8.4 Research contribution .................................................................................................. 200 8.5 Research limitations and further research ................................................................... 202 References .......................................................................................................................... ....203 Appendices ............................................................................................................................. 215 Appendix 1 Initial interviews ................................................................................................. 216 Appendix 2 Case study A open coding examples .................................................................. 224 Appendix 3 Case study A online questionnaire ..................................................................... 231 Appendix 4 Case study A quantitative questionnaire ............................................................ 234 Appendix 5 Case study B LL sessions ................................................................................... 236 Appendix 6 Axial coding ....................................................................................................... 238 Appendix 7 Research paradigms ............................................................................................ 240 Appendix 8 Development Project Chart EPC Organsiations ................................................. 255 ix
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