Effect of Knowledge Management on Service Delivery of Firms Listed at Nairobi Securities Exchange

Abstract

Knowledge management is increasingly gaining traction in most organizations around the world that need to gain and maintain their competitive edge at the marketplace. Intellectual capital theory asserts that constant exchange and diffusion of knowledge within an organization and preserving the knowledge creates competitive advantage. Knowledge-based theory similarly emphasises that knowledge is an intellectual capital that distinguishes one firm from another, creating a sustainable competitive advantage when properly managed. Despite the increased interest in the field of KM globally, majority of studies concentrate on product-based companies, with minimal studies focusing on the service industry. This informed the objective of this study to determine the effect of knowledge management on service delivery of firms listed at NSE, Kenya. Descriptive survey research design was adopted to investigate the effect of KM on service delivery, and the primary data collected from 30 service industry firms listed at NSE through the help of structured questionnaire. Descriptive statistics through the help of SPSS was employed to undertake the analysis. The regression summary found a strong positive relationship between knowledge management and service delivery of firms listed at NSE. The results of correlation analysis also found that service delivery had cumulative positive correlation with knowledge management practices. Based on the finding, the study strongly recommends that all companies listed at NSE to adopt knowledge management practices in their respective firms in order to enhance their service delivery.