Effects of Knowledge Management on the Financial Performance of the Deposit-taking Saccos in Kenya
Abstract
Organizations acquire, use, and store their intellectual capital through Knowledge Management.
Information that has been organized and acquired with the goal of efficiently and effectively
influencing employees' abilities and experience to preserve consistency and enhance
organizational performance is known as Knowledge Management.
The primary cause of poor financial performance is a lack of management awareness among most
of the present workforce in the majority of firms. Organizational information gaps have been
replaced by data availability. The three main pressures on management from a global perspective
are knowledge acquisition, dissemination, and application. Therefore, the main goal of this
research was to evaluate how Knowledge Management affected the financial success of Kenya's
DT-SACCOs. In this regard, the goal of the study was to determine how knowledge
dissemination, application, and acquisition impacted the financial performance of DT-SACCOs
in Kenya.
The Resource Based Theory (RBV), Innovation Diffusions Theory, and Learning Organization
Theory served as its guiding Theories. Data were gathered for the study using questionnaires,
which followed a descriptive research methodology. The target group in Kenya consisted of 70
DT-SACCOS. The Krejcie & Morgan table was used to select the sample size, which resulted in
a sample size of 60 respondents for the questionnaire. Frequencies and percentages were used to
assess the quantitative data. Tables of frequency distribution were used to present the results.
By determining the association between Knowledge Management and financial performance,
regression and correlation analysis was utilized to assess the study hypotheses. The data showed
an R2 of 0.638, indicating that 63.8% of performance changes could be attributed to the
independent variables that were chosen. In addition, the study discovered that knowledge
acquisition (=0.190, p=0.000), firm size (=0.436, p=0.000), and leverage (=-0.158, p=0.007) all
significantly and negatively correlated with financial performance among Kenyan DT-SACCOs.
Distribution of knowledge and liquidity did not significantly differ
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
- School of Business [1411]
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