Abstract
This paper aims to analyze different influencing factors to knowledge management initiatives in the project companies. It presents a model of critical factors, which have deep concerns for failure or success of knowledge management initiatives in projects. Based on literature and the survey-based research results, it finds out that non-availability of incentives and non-presence of appropriate system is the most significant barrier for successful KM initiatives in projects. It is advocated that project managers should harmonize KM practices with organization cultures by formulating an attractive incentive package for their project members to motivate them towards increased effort to suggest ideas for new KM opportunities and launch a user-friendly system before introducing KM initiatives.