Role of Knowledge Sharing Cultures on Competitive Advantage: A Review of the Non-Financial Dimension

Abstract

On the basis of the resource-based view, the effect of knowledge sharing cultures on organization's non-financial performance is explored. I argue that the valuable, rare, inimitable, and non-substitutable knowledge in an organization, not only benefits a firm from a financial sense, but also from a non-financial sense – thereby helping it achieve competitive edge over its competition. By drawing on previous literature, a persuasion is extended that non-financial performance in an organization, to a greater extent, depends on its non-financial performance. A survey of 75 family firms in Migori County, Kenya is carried out using both simple random and stratified sampling techniques. Data is analyzed by inferential statistics- to test the hypothesis that knowledge sharing culture has no significant effect on non-financial performance. Findings reveal that knowledge sharing culture (β = 0.884, p < 0.05) has a positive and statistically significant effect on non-financial performance. The practical implication is that top management should promote cultures of knowledge sharing through organizational processes, technology, collaboration and openness. Theoretically, credence is given to the resource-based view since valuable, rare, inimitable and non-substitutable knowledge resources are associated with significantly enhanced levels of non-financial performance