Knowledge Sharing and Performance of Deposit-Taking Saccos in Kisii County, Kenya

Abstract

Performance of the financial sector globally and more so in Kenya has encountered a number of challenges over time some of which include high competition, unfavourable government policies, management challenges and above all poor knowledge sharing practices. SACCOs in Kenya and other Sub-Saharan countries are yet to effectively incorporate knowledge sharing practices into their operations. This may be due to the fact that knowledge is not leveraged effectively in addition to the countries lagging far behind developed countries in terms of technological application which has resulted to decline in profitability, decrease in customer numbers and net asset value. The study intended to assess the effects of knowledge sharing on performance of deposit-taking SACCOs in Kisii County, Kenya. Specifically, it sought to establish how knowledge expression, knowledge awareness, knowledge availability and knowledge completeness affect the performance of deposit-taking SACCOs in Kisii County, Kenya. The resource based view theory, Knowledge based view theory of the firm and Dynamic Capabilities Model were used to anchor variables in this study. The study used a descriptive research design and had a target population of 210. 63 respondents formed the study’s sample which was equivalent to 30% of the target population and was evenly spread across the management of eight SACCOs. A semi-structured questionnaire was utilized to collect primary data that was analyzed both descriptively and inferentially using the SPSS software. The study established that the four indicators of knowledge sharing had a positive effect on performance of deposit-taking SACCOs in Kisii County, Kenya. The study proposes that SACCOs and other organizations need to ensure that members attend seminars/workshops/conferences. Learning from competitors should be highly encouraged and ensure that best practices are shared routinely. This will ensure that the organization promotes knowledge expression which was seen to positively affect performance. In addition, SACCOs and other organizations should undertake frequent capacity-building programmes and hold regular meetings and seminars to educate the members as these are part of ways of promoting best practices for knowledge awareness in organizations to have a positive impact on performance.