Relationship between knowledge management and performance of Commercial banks in Kenya

Abstract

The knowledge-based view has identified innovative knowledge as what companies require to dominate an industry. Past studies have dealt with knowledge management too broadly without considering specific aspects of knowledge management, and this has led to a limited understanding of the extent of its effect on business performance, given that knowledge management as a concept is complex in nature. Even though companies have implemented knowledge management, they offer inconsistent support that it enhances firm's performance. Despite the focus given by scholarly work, the understanding of the influence of knowledge management on performance within organizations particularly commercial banks is still developing. It is against this background that this study seeks to establish the relationship between knowledge management and performance of Commercial Banks in Kenya. The specific research objectives include; to determine the influence of knowledge conversion on performance; to establish the influence of knowledge transfer on performance; to determine the effect of knowledge application on performance; to analyze the influence of firm's culture in the relationship between knowledge management and performance; and to examine the influence of human capital repository in the relationship between knowledge management and performance of commercial banks in Kenya. To achieve these objectives, the study has adopted explanatory and cross-sectional survey design. The target population of this study comprises all the 43 .commercial banks in Kenya. The unit of observation will be the functional areas of human resource, fmance, marketing, information communication technology, and operations in each bank. This study will use primary and secondary data. Primary data will be collected using a questionnaire with both open-ended and closed-ended questions. The questionnaire will be administered using the drop-and-pick later method. Secondary data will be used to validate information collected from the questionnaire. Quantitative data will be analysed using descriptive and inferential statistics. Descriptive statistics will include percentages, frequencies, means, and standard deviations while . inferential statistics will include regression and correlation analysis. Results of quantitative . data analysis will be presented using figures and tables. Qualitative data with be analysed on the basis of common themes and will be presented in a narrative form.