The Influence of Leadership on Knowledge Management and Organizational Innovation in Commercial Banks in Kenya

Abstract

This research was founded on the view that leaders can increase the levels of organizational innovation through leveraging of knowledge resources. This study aimed to contribute by focusing on how knowledge can be utilized to improve innovation. Knowledge management practices were considered to explain the numerous innovations in the banking industry in Kenya. The goal of this study was to determine how leadership influences the association between knowledge management practices and organizational Innovation. The study was anchored on two theories: knowledge-based theory and upper echelons theory plus the full range leadership model. A descriptive cross-sectional survey design was chosen for the study. The study surveyed 39 commercial banks which are currently operating in the country. Primary data was collected and analyzed using descriptive statistics and ordinal regression. The study findings established that leadership had a significant moderating impact on the association between knowledge management and organizational innovation. The study has made a theoretical contribution by connecting the theoretical views into a combined framework. Further, it supports the theoretical view that the efficient utilization of knowledge resources empowers organizations to achieve better results. Policy makers can use these findings to initiate and implement viable support strategies for the banking industry in Kenya. The study makes a vital contribution to managerial practice as it provides the leaders in various industries with a way to grow their innovation capacity. Cross sectional research, design adopted has the limitation of collecting data at a point in time as opposed to over a long period. Future researchers can consider a longitudinal research design to examine the influence of leadership on knowledge management and organizational innovation to establish causal relationships.