Knowledge Management Strategy and Organizational Change in Commercial Banks in Kenya

Abstract

This study is about knowledge management strategy and organizational change in commercial banks in Kenya. The main objective of the study was to determine the relationship between knowledge management strategy and organizational change in commercial banks in Kenya. Knowledge management strategy can assist a firm to; induce individuals to proffer their knowledge voluntarily for a firm’s use, achieve distinctive advantage through full exploitation of a firm’s knowledge base, build institutional memory and protect it from prying competitors. It can influence amongst others a successful organizational change. The study employed a descriptive cross sectional survey. A total of 39 commercial banks in operation (i.e not under statutory management) were surveyed. Primary data was collected from the respondents using a 7 scale Likert type questionnaire. The quantitative data collected was then analysed utilising both Excel spreadsheet and Statistical Package for Social Sciences (SPSS). Median and mode were computed for central tendency while the inter quartile range was used as a measure of dispersion. Percentages and frequencies were also utilised to present part of the findings. Pseudo R square statistics were used as a measure of association between knowledge management strategy (independent variable) and organizational change (dependent variable). The study found that commercial banks in Kenya primarily employ proactive and moderate knowledge management strategies. Both strategies had a strong association with the organizational changes that the commercial banks have undergone. The most popular form of organizational change was found to be a mix of both revolutionary and evolutionary change. The findings of this study are consistent with theory in that knowledge management strategy was found to have given banks dynamic capabilities in pursuit of a firm’s goals such as organizational change. The study recommends that banks revitalise the foundations of their knowledge management strategies to extract more value from them. Transfer and application of knowledge and cultural principles and leadership essential for effecting a knowledge management system thus strategy are the most crucial aspects that need to be strengthened.