The Moderating Effect of Knowledge Management Strategies on the Relationship between Intellectual Capital and Performance of Large Manufacturing Firms in Kenya
DOI:
https://doi.org/10.53819/81018102t2418Abstract
Knowledge management is concerned with the processes and ways for managing intellectual assets to realize competitive advantages. Although the knowledge management processes naturally exist within the firm, they vary across firms depending of specific contexts faced by organizations. This study sought to establish the moderating effect of knowledge management strategies on the relationship between intellectual capital and performance. This study was guided by positivism philosophy and used a deductive approach. The study adopted a descriptive survey. The population of interest comprised all the 124 large manufacturing firms in Kenya that are members of the Kenya Association of Manufacturer (KAM) as at December 2019. Data was gathered using a questionnaire. The questionnaire targeted CEO, director of human resources and finance. To test this hypothesis, the moderating variable, knowledge management strategies, was indicated by 4 sub-variables, including acquisition and creation, capturing strategies, transferability/sharing and integration and networking. The study findings indicated that knowledge management strategies have a significant moderating influence on the association between intellectual capital and performance significant. The extent to which firms’ intellectual capital results in desirable performance is dependent on the knowledge management strategies employed thereof. The study recommends that large manufacturing firms in the country seeking to improve their performance improve their knowledge management strategies in order to enhance the extent to which intellectual capital thereof, yields desirable organizational performance. This can be achieved by tapping into the wealth of knowledge in the external environment to inform their production and human resource management processes and practices for innovation and performance improvements.
Keywords: Intellectual Capital, Knowledge Management Strategies, Performance & Large Manufacturing Firms
References
Abeysekera, I. (2010). “The influence of board size on Intellectual Capital disclosure by Kenya listed firms.” Journal of IC, 11 (4), 504-518.
Alavi, M., & Leidner, D. E. (2019). Knowledge management and knowledge management systems: Conceptual foundations and research issues. MIS quarterly, 107-136.
Becker, B.E and Hussein, M.A (1998). High performance work systems and firm performance; A synthesis of research and managerial applications. Research in personnel and human resource management, 16, 53 -101.
Booker, L., Bontis, N. and Serenko, A. (2008). The relevance of knowledge management and Intellectual Capital research, Knowledge and Process Management, 15(4), 235 – 46.
Curado, C. & Bontis, N. (2007). Managing Intellectual Capital: the MIC Matrix, International Journal of Knowledge and Learning, 3 (2/3), 316 – 28.
Fan-Chuan, T. & Yen-Jung, F. (2011). Exploring the influence of organizational ethical climate on knowledge management. Journal of Business Ethics, 101(2), 325-342
Gao, W., He, X.J. & Wang, H. (2009). The impact of knowledge integration on firm performance. Journal of International Technology and Information Management, 18(2), 239-258
Ghosh, S. (2009). “Indian Software and pharmaceutical sector IC and financial performance” Journal of Intellectual Capital, 10 (3), pp. 369-388.
Grant, R.M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(52), 109-122
Hamel, G., & Prahalad, C. K. (1990). Strategic intent. Mckinsey quarterly, (1), 36-61.
HSU, I.C. (2011). From Intellectual Capital to firm Performance. The mediating Role of Knowledge Management Capabilities, IEEE Transactions on Engineering Management, 58(4):626-642.
Hussinki, H., Ritala, P., Vanhala, M. & Kianto, A. (2017). Intellectual capital, knowledge management practices and firm performance. Journal of Intellectual of Intellectual Capital, 18(4), 904-922
Junnarkar, B. & Brown, C.V. (1997). Re-assessing the enabling role of information technology in KM. Journal of Knowledge Management, 1(2), 142-148
Kianto, A. (2008). Development and validation of a survey instrument for measuring organizational renewal capability. International Journal of Technology Management, 42(1), 69-88
Kianto, A., Ritala, P., Spender, J.C. & Vanhala, M. (2014). The interaction of intellectual capital assets and knowledge management practices in organizational value creation. Journal of Intellectual Capital, 15(3), 362-375
Kogut, B. & Zander, U. (1992). Knowledge of the firm, combinative capabilities and the replication of technology. Organization Science, 3, 383-397
Ling, Y.H. (2013). The influence of intellectual capital on organizational performance-knowledge management as moderator. Asia Pacific Journal of Management, 30(3), 937-964
Matthew, C.T. & Sternberg, R.J. (2009). Developing experience based (tacit) knowledge through reflection. Learning and Individual Differences, 19(4), 530-540
Nonaka, I., & Takeuchi, H. (1995). The Knowledge Creating. New York, 304.
Ordonez de Pablos, P. (2003). “Intellectual Capital reporting in Spain: a comparative review,” journal of IC, Vol. 4 No. 1, pp. 61-81. MCB UP Ltd.
Rehman, W., Ilyas, M. & Asghar, N. (2015). Knowledge sharing, knowledge management strategy and performance. A knowledge based view. Pakistan Economic and Social Review, 53(2), 177-202
Reus, T.H., Ranft, A.L., Lamont, B.T. & Adams, G.L. (2009). An interpretive systems view of knowledge investments. Academy of Management Review, 34(3), 382-400
Serenko, A. & Bontis, N. (2009), Global ranking of knowledge management and intellectual capital academic journals, Journal of Knowledge Management, 13(1).
Teece, D. J., (1997). Dynamic capabilities and strategic management. Strategic Management Journal. Vol. 18. 509-533.
Wang, J., Peters, H.P. & Guan, J. (2006). Factors influencing knowledge productivity in German research groups: lessons for developing countries. Journal of Knowledge Management, 10(4), 113-126
Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic management journal, 5(2), 171-180.
Wiig, K, (2004). “People focused knowledge management: How effective decision making leads to corporate success,” Butterworth. Heinemann, Oxford.