The construction industry is an integral component of the Australian economy. Efficient management within the industry is critical to its overall performance. In recent years much attention has been paid to the concept of knowledge management and its application to the industry. Action research has been applied within an ethnographic study of an industry market leader. Market leaders play a significant role in the adoption of new concepts and technologies and it is through their actions that new knowledge is created. Central to ethnography is its reliance on 'participant observation', as a primary mode of data collection allowing a unique perspective on values, beliefs and culture. Organizational culture influences the transferral of information and knowledge and is a key component within knowledge management frameworks. The ability to create and maintain knowledge is essential in the maintenance of a sustainable competitive advantage. Evaluating practices within a market leader provides insights into the contribution of knowledge management in maintaining this sustainability.