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.