The Moderating Effect of Organizational Culture On the Relationship between Knowledge Transfer Strategy and Performance of Medium Size Family Owned Businesses in Selected Counties in Kenya
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Date
2022-02
Authors
Mworia, Kaibung’a
Muchemi, Anne
Mwasiaji, Evans
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Economics, Commerce and Management
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 medium size family owned businesses and organizational culture may moderate
the relationship. This study therefore sought to establish 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 institutional and balanced
scorecard theory. The philosophy applied was positivism while the research design was
descriptive and explanatory approaches. The study targeted four senior managers of 320 midsize family businesses in selected counties 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. Content and construct validity were ensured with the help of
experts and supervisors and through confirmatory factor analysis with factor loadings of 0.4 or
above, respectively. 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.
It was established that firm culture has positive and significant moderating effect on the link
between knowledge transfer strategy and medium size family owned businesses performance in
selected counties in Kenya. The study recommends that family owned medium size businesses
should empower both family and non-family staff members to make decisions for the best
interest of the organization. Such firms should also involve professionals who could even be
non-family members in management of the businesses. Medium size family owned businesses
should also have a working organizational structure where every position whether held by a
family or non-family member is respected.
Description
research article
Keywords
Organizational Culture, Knowledge Transfer Strategy, Family Owned Medium Size Businesses, Performance of Family Owned Businesses
Citation
Kaibung’a, M., Muchemi, A., & Mwasiaji, E. (2022). The Moderating Effect of Organizational Culture on the Relationship between Knowledge Transfer Strategy and Performance of Medium Size Family Owned Businesses in Selected Counties in Kenya.