Knowledge Strategy, Organizational Characteristics, Innovation And Performance Of Manufacturing Firms In Kenya
Abstract
Organizational knowledge is increasingly gaining attention in strategic management and
related fields. Theoretically, there is consensus that knowledge strategy is related to
organizational performance. However, few empirical studies have examined the
relationship between knowledge strategy and organizational performance. Further, the
few empirical studies examining the link between the variables have yielded inconsistent
results. Whereas some studies have reported direct positive relationship, others found no
direct relationship. This calls for research adopting a contingency approach to examine
the interaction effect of situational factors on the relationship between knowledge
strategy and performance. While organizational characteristics and innovation are critical
factors for knowledge initiatives and performance, prior studies have not focussed on
their role in the linkage between knowledge strategy and organizational performance.
Manufacturing firms in Kenya are operating in a competitive environment as a result of
liberalization of the economy. To enhance competitiveness and performance, the firms
are managing organizational knowledge as a resource. However, past studies in Kenya
have not examined the relationship between knowledge strategy and performance of the
firms. The objectives of this study were to: determine the effect of knowledge strategy on
performance; establish whether organizational innovation mediates the relationship
between knowledge strategy and performance; determine the influence of organizational
characteristics on the relationship between knowledge strategy and performance; and
establish whether the joint effect of knowledge strategy, organizational characteristics,
and innovation on performance is greater than the effect of knowledge strategy on
performance. The study was based on the resource-based theory, knowledge based view,
dynamic capabilities and contingency theory. The study adopted cross-sectional survey
research design. The target population comprised 655 manufacturing firms in Kenya. A
stratified sample of 266 firms representing twelve sub-sectors of the manufacturing sector
was used. Primary data was collected from 184 firms using structured questionnaire
administered to the managers of the firms. To describe profiles of the firms and research
variables, means, standard deviations and coefficient of variation were used; and
Pearson’s correlation was used to examine relationships between the variables. To test
hypotheses, multiple regression and hierarchical regression were used. The results
revealed significant positive relationship between knowledge strategy and performance.
The results also showed that organizational innovation mediated the relationship; while
organizational characteristics moderated the relationship between knowledge strategy and
performance. Further, the results demonstrated that the joint effect of knowledge strategy,
organizational characteristics, and innovation on organizational performance was greater
than the effect of knowledge strategy alone. By empirically examining the integrated
model interconnecting variables, this study provides new insights into the role of
organizational characteristics as a moderating variable and organizational innovation as a
mediating variable in the linkage between knowledge strategy and performance. The
findings support the integrated model and demonstrate that the influence of knowledge
strategy on performance is contingent on interaction of organizational characteristics and
innovation; hence the need to align knowledge strategy with the situational factors to
enhance performance. The researcher recommends replication of the study in different
sectors and countries to enhance understanding of the relationship between knowledge
strategy and organizational performance.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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