A Survey Of The Relationship Between Information Sharing And Firm Performance Among Large Manufacturing Firms In Nairobi
ABSTRACT Intensified competition and globalized markets have forced organizations to become increasingly dependent on information sharing for competitiveness and decision making. This study sought to determine the relationship between information sharing and firm performance. A sample survey was conducted on categorized large manufacturing firms in Nairobi. The findings of the research revealed that information sharing is critical to the firms’ competitiveness. Furthermore, information sharing was strongly related to performance objectives namely; market share, financials, effectiveness and efficiency and ability to change and innovate. The study further found that a number of challenges influence information sharing. They comprise of; structural, cultural, individual as well as medium of transmission. The other finding was that, some manufacturing firms deliberately limit sharing of information and knowledge because of concerns about diverting or overloading employees’ work-related attention, and a perception that their employees can become so powerful that the firm loses control of them. The study concluded that information sharing should be encouraged for long term competitiveness and improved performance. Although many companies are reluctant to share information, this study recommends it since sharing information creates a sense of trust among employees which is likely to increase productivity. Whereas this study was limited on sample size, the research findings concur with prescriptive literature, and recommends future research to investigate information sharing and organizational culture as well as challenges of information sharing and measures to overcome them.