Managing knowledge to produce innovation in Sri Lankan consultancy firms

Innovation is one of the major issues identified as being important to improve the performance of the construction industry. Construction firms are increasingly being challenged for successful innovation. The knowledge resources such as human, structure and relationship of the firms are taken a significant part in the process of innovation. Managing these capitals to achieve innovation is a challenging task to firm's management. Thus, the aim of this study is to explore how consultancy firms in Sri Lanka, manage this knowledge capital towards innovation. Multiple case studies were conducted by direct observation and interviews with top and middle level managers of the firms. During interviews documents and archival records were examined. Nvivo software was used to codify and content analyse the transcripts. The findings explore the nature of innovation in Sri Lankan consultancy firms. The results indicate that in the process of innovation, client's requirements are a key factor. The firms mostly focus to satisfy their clients and survive in the market. The innovation is pushed by client's requirements and internal professional's skills. At the same time inadequate resources and clients' inadequate attention obstruct the process. Firms have enough knowledge capitals such as communication networks, efficient management, professional's skills, energetic young peoples and standard documentation to produce innovation. However, due to the less intention of clients and the management on innovation, the innovation process is slow in Sri Lanka. Through established guidelines, training and development programs employees can be given opportunity to manage knowledge capitals effectively.