Knowledge acquisition practices and innovation by equity bank Employees in kiambu county

Abstract

Despite technological advancements, many bank employees lack effective ways to acquire knowledge necessary for innovation. This study examined the influence of knowledge acquisition practices, including external knowledge sourcing, internal knowledge sharing, partnerships and alliances, on innovation at Equity Bank in Kiambu County. Guided by the Knowledge-Based View, Absorptive Capacity, Organizational Learning, and Dynamic Capabilities theories, the study used a descriptive research design with stratified random sampling of 205 employees across 17 Equity Bank branches. Data from 180 respondents were analyzed using SPSS with regression and correlation analyses after diagnostic tests for normality and multicollinearity. The results show that internal knowledge sharing has the strongest significant positive effect on innovation (B = 0.218, p < 0.001), followed by partnerships and alliances with a marginally significant positive effect (B = 0.173, p = 0.052). External knowledge sourcing, although actively practiced, does not have a statistically significant effect on innovation (B = -0.061, p = 0.303). Collectively, the knowledge acquisition practices explain approximately 47.8% of the variation in innovation (R² = 0.478, F (4,175) = 39.987, p < 0.001). The study recommends that Equity Bank strengthen internal knowledge sharing mechanisms and formalize partnerships beyond academic collaborations. Increasing investment in research and development and improving agility in responding to market shifts are also recommended to enhance innovation capabilities. These findings provide vital insights for knowledge management and innovation enhancement in banking institutions in developing economies.