Relationship between knowledge management and performance of commercial banks in Kenya
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Date
2015-10
Authors
Kinyua, Godfrey Muigai
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
The knowledge-based view has identified innovative knowledge as what companies
require to dominate in an industry. Past studies have dealt with knowledge
management too broadly without considering specific aspects of knowledge
management which has led to a limited level of understanding on the extent to which
the comprehensive nature of knowledge management has influenced firms'
performance. Even though some companies have implemented knowledge
management, there is no conclusive empirical evidence on the influence of knowledge
management on performance. It has been noted that performance of Commercial
Banks suffer because knowledge is hoarded in scattered silos, fragmented by division,
department, region and a host of other organizational factors such as culture,
processes and management style. It is against this background that this study sought to
investigate the relationship between knowledge management and performance of
Commercial Banks in Kenya. The specific objectives of the study sought to determine
the relationship between knowledge conversion and performance; to establish the
relationship between knowledge transfer and performance; to determine the
relationship between knowledge application and performance; to establish the
mediating effect of human capital repository on the relationship between knowledge
management and performance; and to determine the. moderating effect of firm's
culture on the relationship between knowledge management and performance of
Commercial Banks in Kenya. To achieve these objectives, the study adopted
explanatory and cross-sectional survey design. The target population of this study
comprised of all the forty three Commercial Banks in Kenya. The unit of observation
was the functional area in each bank, whereas the unit of analysis was Commercial
Bank. Five functional areas were identified in each bank comprising human resource,
finance, marketing, information communication technology, and operations. This
study used primary and secondary data. Primary data was collected using a semistructured
questionnaire. The questionnaire was administered using drop-and-pick
later method. Secondary data was collected using document review and was used to
validate information collected through the questionnaire. The response rate in this
study was approximately seventy three percent which was considered sufficient for
making inferences and drawing conclusions. Quantitative data was analysed using
descriptive and inferential statistics. Descriptive statistics was used to summarise the
survey data and included percentages, frequencies, means, and standard deviations.
However, inferential statistics involved regression analysis and was used for testing
hypotheses and drawing conclusion. Results from quantitative data analysis were
presented using figures and tables. Qualitative data was analysed on the basis of
common themes and presented in narrative form. The findings of the study
established that knowledge management positively influence performance. Moreover,
knowledge conversion, knowledge transfer and knowledge application were found to
be statistically significant. Human capital repository was found to partially mediate
the relationship between knowledge management and performance. Furthermore, the
findings also revealed that firm's culture moderates the relationship between
knowledge management and performance. Management of Commercial Banks can
use these findings to enhance utilization of organization's knowledge base and firm's
absorptive capacity. Moreover, management of other knowledge-intensive
organizations can use these findings to formulate knowledge management policies
and promote knowledge management practices.
Description
A thesis submited to the school of business in partial fulfilment of the requirements for the•
award of the Degree of Doctor of Philosophy in Business Administration of Kenyatta University. October, 2015