Effect Of Knowledge Management Practices On Organization Performance Of Selected State Corporations In Kenya

Abstract

Knowledge management is known to optimize organizational productivity and performance. As organizations sought to improve their performance and try to achieve organizational performance, gaining knowledge was seen as a key component. The main objective of this research was to determine the effect of knowledge management practices on organization performance in the selected state corporations in Kenya. Specific objectives that guided this study were to determine the effect of knowledge accumulation on organization performance in selected state corporations in Kenya; to establish the effect of knowledge utilization on organization performance in selected state corporations in Kenya; to establish the effect of knowledge sharing on organization performance in selected state corporations in Kenya; and to establish the effect of knowledge ownership on organization performance in selected state corporations in Kenya. The study adopted descriptive research design to obtain data from the target population of 179 State corporations in Kenya. The findings show that coefficient of correlation R was 0.866, an indication of a strong correlation between the variables. The coefficient of adjusted determination R2 was 0.740 which translates to 74.0%, this shows changes in organizational performance can largely be explained by the four independent variables. The study concludes that knowledge accumulation has a significant influence on organizational performance this is due to States Corporation’s engagement in research to generate new knowledge. Knowledge utilization has a significant influence on organizational performance of State Corporations. Knowledge sharing has a significant influence on State Corporation. This is due to use of knowledge to influence the kind of culture the State Corporation wants to prevail in and collaboration with other stakeholders in ensuring competitiveness. Knowledge ownership has a significant influence on organizational performance due to increased privacy on information breach. The study recommends that State Corporations ought to refine their internal processes in line with the strengths of the staff, conduct internal experiments to improve service delivery to customers, collect customer feedback to inform future decisions and use customer feedback to improve their processes. State corporations ought to utilize its knowledge to departmentalize its operations, reuse its knowledge to strengthen its operations, use its knowledge to influence the kind of culture it wants to prevail and collaborate with other stakeholders in ensuring competitiveness. State corporations ought to approve secondment of employees to other departments, encourage teamwork among employees, hold regular town hall meetings and organize regular internal trainings for its staff. State corporations ought to patent its knowledge. Employees at state corporations ought to be bound by the signed agreement while still working and after they leave the organization.