The Roles of Managing Innovation, Knowledge Management and Information Technology to Develop Competitive Advantage

Abstract

This research aims to explain the roles of knowledge management innovation and information technology
to competitive advantage by examining causal effect of information technology performance, innovation
management and knowledge management on on competitive advantage. For this purpose, an empirical
survey was conducted with involvement of 105 respondents consist of managers and decision makers of
twelve construction companies as well as other intitutions related to conctruction business services. On the
basis of Structural Equation Modelling (SEM) analysis, the results show that all hypotheses were accepted
which indicates that knowledge management and innovation management have significant and positive
effect on competitive advantage. Competitive advantage can be improved by increasing the complexity of
human resource skills and tacit knowledge. Competitive advantage can also be developed by improving
the facilities of company leadership as part of information technology.