Effect of Knowledge Conversion and Knowledge Application on Performance of Commercial Banks in Kenya
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Date
2015
Authors
Kinyua, Godfrey M.
Muathe, Stephen M. A.
Kilika, James M.
Journal Title
Journal ISSN
Volume Title
Publisher
Contemporary Research Center
Abstract
This study examines the effect of knowledge conversion and knowledge application on
performance of Commercial Banks in Kenya. The four modes of knowledge conversion
process comprising of socialization, externalization, combination and internalization are
utilized in this study. knowledge application was measured using indicators comprising of
problem solving, elaboration, efficient processes, IT support, and infusion In addition,
performance was measured using non-financial indicators comprising new products, speed of
response to market crises, product improvement, customer retention, and new processes. The
study adopted explanatory and cross-sectional survey design. The target population of this
study comprised of all the 43 Commercial Banks in Kenya. The unit of observation was the
functional area in each bank. Five areas were identified in each bank comprising human
resource, finance, marketing, information communication technology, and operations in each
bank. This study used primary and secondary data. Primary data was collected using a semistructured
questionnaire. The questionnaire was administered using the drop-and-pick later
method. Secondary data was collected using document review and was used to validate
information collected from 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 included percentages, frequencies, means, and standard
deviations while inferential statistics involved regression analysis. 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 conversion and knowledge application positively influence
performance. Management of Commercial Banks should encourage interaction between
employees and customers. Moreover, bank’s processes should be used to enhance
understanding and translation of knowledge (explicit) into application (tacit knowledge).
Description
Research Article
Keywords
Knowledge Management, Knowledge Conversion, Knowledge Application, Organizational Performance
Citation
International Journal of Education and Research Vol. 3 No. 10 October 2015