Knowledge Transfer Strategy and Performance of Medium Size Family Owned Businesses in Kenya
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Date
2022
Authors
Kaibung’a, Joseph Mworia
Journal Title
Journal ISSN
Volume Title
Publisher
Kenyatta University
Abstract
Family owned medium businesses contribute significantly to Kenyan economic development. Despite this vital contribution, family owned medium enterprises have been performing poorly. Profits, sales growth, intergenerational transition and family members’ satisfaction has been proved to be low. Extant literature shows that knowledge transfer strategy may influence performance of businesses. This study therefore sought to establish the effect of knowledge transfer strategy on performance of medium size family owned businesses in Kenya. The specific objectives of the study were; to assess the effect of organizational learning strategy, codification strategy, personalization strategy and mentorship strategy on performance of medium size family owned businesses in Kenya. The study further sought to establish the mediating effect of human resource competences and the moderating effect of organizational culture on the relationship between knowledge transfer strategy and performance of medium size family owned businesses in Kenya. The study was premised on social exchange theory, learning organization theory, knowledge based view theory, institutional theory, balanced scorecard theory and resource1based1view1theory. The philosophy used was positivism while the research design was descriptive and explanatory approaches. The study targeted four senior managers of 320 mid-size family businesses in Kenya. Proportionate stratified sampling of the manufacturing, service and trade sectors were used to establish a representative sample of 560 respondents. A questionnaire was used to collect primary data, and a document review guide was used to obtain secondary data. Face, construct, and content validity were all ensured with the help of experts and supervisors, as well as confirmatory factor analysis with factor loadings of 0.4 or above. Cronbach's Alpha was used to measure reliability, and a coefficient of 0.7 was found to be satisfactory. Descriptive and inferential statistics were used to analyze the data. Inferential analysis examined knowledge transfer strategy effect on medium family1owned1businesses performance in Kenya through the use of multivariate analysis and hypothesis testing. Results were presented using charts and tables. Content analysis was used in analysing qualitative data. The study concluded that organizational learning strategy, codification strategy, personalization strategy and mentorship strategy positively and significantly affects performance of medium size family owned businesses in Kenya. The study also established that human resource competences have a significant partial mediating effect on the relationship between knowledge transfer strategy and performance of medium size family owned businesses in Kenya. In addition, it was established that firm culture has positive and significant moderating effect on the relationship between knowledge transfer strategy and medium size family owned businesses performance in Kenya. The study recommends management of family owned businesses to initiate reforms aimed at achieving better performance though adoption of effective knowledge transfer strategies in this modern era. The study is significance since it provides insights to family business owners, management and the government on how to improve performance of family owned medium size businesses.
Description
A Thesis Submitted to School of Business in Partial Fulfillment of the Requirements for the Award of the Degree of Doctor of Philosophy in Business Administration (Strategic Management Option) of Kenyatta University, August, 2022
Keywords
Knowledge Transfer Strategy, Performance, Medium Size Family, Businesses, Kenya