PurposeThis research aims to establish a comprehensive approach that integrates the aspects to describe how knowledge is focused, developed, reassigned, and implemented to increase project effectiveness. This study examines the interaction of social factors that influences tacit knowledge sharing, absorptive capacity, and project site performance.Design/methodology/approachThe data were collected from Chinese project-based organizations and examined using structural equation modeling (SEM) to test the model and evaluate the hypothesis.FindingsThe findings reveal that good knowledge governance and tacit knowledge sharing are essential prerequisites to boost the project’s absorptive capability. Furthermore, social dynamics favorably modify the link between absorptive capacity, tacit knowledge sharing, and project results. The findings are supportive of the proposed model in general.Originality/valueThis research addresses the critical issue of project knowledge management systems and presents a comprehensive framework that broadens the technical and interpretative bounds of current models designed to achieve project success.