The Mediating Effect of Knowledge Management on the Relationship between Risk Management and Project Performance

Risk management is the fundamental part of project management where it aims to discover the potential risks affiliated with a project and take suitable actions against those risks. Risk management is a comprehensive and systematic way to manage risks, which is implemented continuously throughout the construction project in order for a construction company to achieve their project objective. The purpose of this paper is to study the mediating effect of knowledge management (KM) on the relationship between risk management (RM) and project performance (PP). This paper is a quantitative research whereby questionnaire survey is used. The population of this research is the construction industry (CI) in Malaysia. This paper had proposed a framework of the relationship between RM, KM and PP. The results of PLSSEM showed that (1) there is a positive and significant relationship between RM and PP; (2) there is a positive and significant relationship between risk management and knowledge management; (3) there is a positive and significant relationship between KM and PP; (4) KM has partially mediated the relationship between RM and PP. Hence, this paper concludes that implementation of RM will drive the implementation of KM in construction companies, which eventually improve the PP.