| Summary: | Despite the increasing interest in managing knowledge, there has been limited research on applying knowledge as the intangible source for competitive advantages in the Facilities Management (FM) organisational performance. A review of literature revealed that only limited number of studies related to the relationship between knowledge and FM organisational performance, resulting lack of understanding and good practices in FM implementation. This research elaborated on the theories of resource-based view (RBV) and knowledge-based view (KBV) to identify the importance of knowledge management. The aim of this study is to improve the existing model by developing a new dimension of the relationships between a group of constructs (knowledge elements, mediating constructs, and FM organisational performance) in the model of FM organisational performance. The model used in this research was tested using empirical data collected from survey involving practitioners in the organisation that practising FM. The survey collected 215 usable questionnaires. The collected data were analysed by using structural equation modeling. The research findings revealed that 10 out of 12 relationships were significant, which proves that all constructs are modelled based on the sample data. Two relationships were not significant, which are the relationship between knowledge management and dynamic capabilities; and the relationship between dynamic capabilities and FM organisational performance. Furthermore, there are three constructs that play the role of mediator between the relationship of knowledge management and FM organisational performance, which are customer performance, efficiency, and innovation. Therefore, this research showed the importance of knowledge elements and mediating constructs in creating a competitive advantage among the FM organisation.
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