Critical factors for knowledge management in project business

Purpose The purpose of this study is to identify and examine various factors that influence the success or failure of knowledge management (KM) initiatives in project‐based companies. Design/methodology/approach Following a literature review, the study proposes a conceptual model of six factors of potential importance to the success of KM initiatives. The model is then examined through an online survey of project managers and assistant managers from project‐based businesses in Finland. Findings The study finds that a lack of incentives and the absence of an appropriate information system are the most significant barriers to successful KM initiatives in projects. Research limitations/implications The findings of the study may be restricted in terms of generalisability because of the limited empirical study. Practical implications Project managers should formulate an attractive incentive package to encourage project members to participate in KM initiatives and to suggest ideas for new KM opportunities. Managers should also ensure that an effective user‐friendly information system is in place before introducing KM initiatives. Originality/value The study proposes a new model of critical success factors for KM initiatives in the context of project‐based business.