Knowledge Management and Competitive Advantage of Restaurants in Kwale County

Abstract

Organizational performance derives from the ability of leadership to create and sustain competitive advantage. The emerging research gap in knowledge management and competitive advantage is compounded by the rapidly changing economic environment in the advent of technological turbulence, competitive initiatives, and market turbulence. Competitive firms tend to outdo their rivals in the industry by creating and delivering superior value to customers, investors, employees and key stakeholders in the industry. Understanding consumer needs and analyzing how competitors organize themselves are the beginning points of creating superior value that in turn leads to competitive advantage. The study therefore sought to establish the connection between knowledge management that restaurants in Kwale County, Kenya adopt to spur their competitive advantage. The study was constructed on a descriptive cross-sectional survey of 100 restaurants in Kwale County. The theoretical foundation of the study was based on three theories, namely, resource-based view theory, dynamic capabilities theory and knowledge-based view theory. Data was collected using questionnaire from all the elements of the population, making it a census study. Stratified random sampling was used in the study. The respondents to the questionnaire comprised of restaurant manager, food & beverage production manager, or customer care officer. The collected data was analyzed through descriptive statistics as well as inferential statistics in order to offer an in-depth relationship between the variables and the explicit variability of the restaurants competitive advantage. From the findings of this study, it was evident that knowledge management enhance Competitive Advantage. The coefficient of regression, R = 0.527 and the coefficient of determination measure ofR square = 0.2778 showed that knowledge management affected growth of the firms by up to 27.78%, implying that knowledge management explained more than 27.78% of the Competitive Advantage at 95% level of confidence. The regression estimation of the model, which is significant at 95% showed that the model was significant in explaining the relationship between knowledge management and Competitive Advantage at that significance level. Hence, it is advised that restaurants should endeavour to embrace and employ knowledge management tailored to their specific needs to improve their competitive advantage. The study suggests that incorporating the findings into policymaking can contribute to the formulation ofsupportive policies for the restaurant sector. Additionally, it is recommended that restaurants explore the adaptation of knowledge management to the broader context, assessing whether their strategies align with the economic, social, and cultural dynamics specific to their clientele.