This article analyses the Knowledge Management (KM) and Project Management (PM) practices of manufacturing firms based in Baja California to determine their level of importance in generating competitive advantage in the manufacturing sector in Baja California. Key questions researched in this paper are: 1) How is KM managed through information technologies and organisational systems, ensuring empirical and industrial success? and 2) How do PM strategies increase competitiveness in the Baja California manufacturing sector? The research analyses currently-implemented management systems used for improved KM and PM, based on knowledge and new advantage orientation. One of the limitations found in this research is that several firms do not adopt standardised policies relating to knowledge procurement and development. Although competitiveness is perceived as vital for organisations, the combination of KM and PM are not yet fully developed and integrated into organisational processes to increase competitiveness. It is found that KM and PM have influence and correlations with competitiveness.