Knowledge Management Capabilities and Performance of Insurance Firms in Kenya

Abstract

The motivation behind this research lies in the pivotal role that effective knowledge management plays in enhancing organizational performance, particularly in industries characterized by information-intensive processes. Recognizing the dynamic and competitive landscape of the Kenyan insurance sector, the study aims to contribute empirical insights that could inform strategic decision-making and policy formulation within the industry. Employing a cross-sectional research design, the study targets the population of 54 insurance firms in Kenya, focusing on the heads of human resources as the primary respondents. The study utilizes a 5-point Likert scale questionnaire to collect primary data, ensuring a comprehensive exploration of the perceptions of human resource managers regarding knowledge management practices within their organizations. The robustness of the study is further enhanced by employing descriptive, correlation, and regression analyses as data analysis techniques. The regression analysis, incorporating knowledge acquisition, application, transfer, and protection as predictors, unveils a highly explanatory model. Knowledge protection emerges as the most influential factor, followed by knowledge acquisition, application, and transfer. The model explains approximately 93.6% of the variance in organizational performance, underscoring the collective impact of these knowledge management dimensions. In conclusion, the study affirms the critical role of knowledge management in shaping the performance outcomes of insurance firms in Kenya. The findings provide actionable insights for policymakers and practitioners, emphasizing the need for a comprehensive and integrated approach to knowledge management. Recommendations include fostering a knowledge-friendly organizational culture, prioritizing the effective application of acquired knowledge, strategically integrating knowledge transfer practices, and robustly protecting intellectual assets. The study concludes with a call for further research to explore longitudinal dynamics, incorporate diverse stakeholders, conduct cross-industry comparisons, and investigate the influence of emerging technologies on knowledge management within the insurance sector.