The impact of knowledge management on wage growth in the construction sector: The case of medium-sized and large companies in the Republic of Serbia

Vojislav Babic¹ and Sinisa Zaric²

¹ Institute for Sociological Research, Faculty of Philosophy, University of Belgrade
² Faculty of Economics, University of Belgrade

The study measures and analyzes the influence of knowledge management on average wages in Serbian construction companies. For the purpose of this research, of Knowledge Management (KM) dataset with 11 variables was created. The main goal of the research was to examine the influence of the dataset on the average wages in medium-sized and large construction companies. At the basic sample level, through factor analysis, a total of four factor scores were isolated, representing the strategies that the companies combine in KM. Using a regression analysis, it was found that the set of the four independent variables explained 84.5% of the average wage variability in the medium-sized and large construction companies. Two of the four strategies were statistically significant. According to the first strategy, the management insisted on a larger share of experts with the master’s and bachelor degrees, while the second strategy was based on the introduction of the formal, legal protection and registration of innovative solutions, as well as a larger number of employees with a PhD degree.

Keywords: knowledge management, construction sector, factor analysis, multiple regression, wages, mid-size and large companies

JEL Classification: M21, M150