Knowledge Management, Organisational Learning, Organisational Characteristics and Performance of Companies Listed at the Nairobi Securities Exchange

Abstract

This study conceptualizes relationships among knowledge management (KM), organisational learning (OL), organisational characteristics (OC) and organisational performance OP. Scholars agree that KM is linked with sustained organisational performance. However this linkage remains unclear. Yet scholars acknowledge that knowledge management is a crucial necessity in all organisational operations. The study set out to gain deeper understanding on how organisational learning and organisational characteristics affect the relationship amongst knowledge management and organisational performance. The study’s specific objectives were; to examine the relationship between knowledge management, and organisational performance, establish the mediation role of organisational learning on the relationship between knowledge management and organisational performance, establish the moderating role of organisational characteristics on knowledge management and organisational performance, and finally establish whether the complementary effect of knowledge management, organisational learning, and organisational characteristics on organisational performance is significantly greater than that of the individual effect of knowledge management on organisational performance in companies listed at the NSE. The objectives had corresponding hypotheses which were stated and tested using PLS-SEM. Through a cross-sectional survey, the researcher collected data from companies listed at the NSE using a structured questionnaire. The PLS-SEM analysis findings indicated a statistically significant direct relationship between knowledge management and organisational performance. Results indicated that organisational learning partially but strongly mediated the link between knowledge management and organisational performance. Organisational characteristics’ moderation role on the relationship amongst knowledge management and organisational performance was found to be negative but statistically insignificant. Results indicated that the complementary effect of knowledge management, organisational learning and organisational characteristics on organisational performance was significantly greater than that of the individual effect of knowledge management on organisational performance. This is in agreement with the theory of complementarities. The findings also revealed that the connection between knowledge management and organisational performance is indirect as it is mediated by organisational learning. This implies that organisations should find the best way to use organisational variables as complements of each other for best results in terms of competitive advantage and therefore organisational performance.