Sharing Knowledge Between Aerospace and Construction
Start Date: Nov 00
End Date: Dec 02
Project Status: Complete
Learning from other industries
The research investigates the extent to which managerial practices can be shared between the aerospace and construction sectors. The research is made especially timely by the current importance attached to 'learning from other industries'. The emergence of integrated procurement methods such as prime contracting in the construction sector make comparisons with the aerospace sector particularly pertinent. Within the aerospace sector, prime contracting has long been the preferred procurement approach. The research seeks not only to investigate specific managerial practices, but also to evaluate a participative methodology for knowledge sharing across business sectors. Current recipes for learning from other industries tend to be over-simplistic and often fail to recognise the embedded and contextual nature of managerial practice. The existing literature reveals a widespread absence of contextual awareness amongst those who advocate practices such as supply chain management for the construction sector.
Tacit knowledge
The underlying proposition is that knowledge relating to managerial practices is frequently tacit in nature and embedded within context. Given that many companies find it difficult to transfer knowledge between different departments, the challenges of transferring knowledge across business sectors are considerable. The recognition of the tacit nature of knowledge argues against simplistic notions of 'knowledge transfer'. The research adopts a socialised process of knowledge sharing that emphasises the importance of contextual sensitivity.
Embedded in context
Preliminary work has identified that business practices are frequently embedded in a broader organisational context and therefore not easily transferable. The research team have devised a methodology to take into account the embedded nature of knowledge. The distinction between tacit knowledge and explicit knowledge is seen to be especially important.
Five research cycles
Following an initial structural comparison, the project was structured around five research cycles that investigated different managerial practices as identified by the project steering committee: (i) supply chain management, (ii) requirements management, (iii) human resource management, (iv) knowledge management, and (v) innovation. Each cycle sought to understand how these different practices were understood and enacted within the two sectors. In each case semi-structured interviews were conducted with subject experts in both the aerospace and construction sectors. Documentary sources were also reviewed and the findings of each cycle were validated by a multi-disciplinary workshop involving practitioners from both sectors.
Preliminary findings
The findings to date present a significant challenge to the widely held assumption that universal models of 'best practice' can be applied irrespective of context. Managerial interpretations of the topics investigated were found to be inexorably shaped by industry structure. The structure of the aerospace sector is almost diametrically opposed to that of the construction industry. While the former is hugely consolidated the latter remains highly fragmented and relatively localised. The UK aerospace sector is dominated by one large national champion that accounts for 60% of supplier output. In contrast, the top thirty contractors in the construction sector routinely account for only 17% of output. The aerospace industry has very few clients whereas the construction industry has many. Such structural differences have been found to have a huge impact on the way in which managerial practices are conceptualised. The European aerospace sector is predicated on an ethos of mutual dependency in the light of market domination by the US defence giants. Collaborative working is therefore