Implications of Responsive Cultures of Knowledge Sharing on Non-Financial Performance: An Empirical Study of Family Owned Micro, Small and Medium Enterprises in Migori, Kenya

Abstract

In the last decade, sharing of new knowledge has become an essential component for the survival of enterprises that are keen on maintaining their overall competitiveness. More and more studies are confirming that when a culture of sharing knowledge is prevalent in an organization, then its competitive edge is significantly enhanced. However, it is yet to be confirmed whether family firm's non-financial performance can be greatly improved as a result of fostering of a culture of sharing of the organization's knowledge. A culture of knowledge sharing is premised on the notion that an enterprise's most prized asset is the knowledge of its workforce. Nevertheless, despite the tremendous attention that sharing of knowledge in organizations has received in the last decade, its effect on family owned Micro Small and Medium Enterprises' non-financial performance has been largely ignored. The purpose of this study was therefore to investigate the effect of knowledge sharing culture on non-financial performance of family owned Micro, Small and Medium Enterprises in Migori County, Kenya. Survey research design was used for the study with a sample size of 118 respondents. Simple and stratified random sampling techniques were adopted. Findings revealed that knowledge sharing culture had a positive and statistically significant effect on non-financial performance of family owned Micro, Small and Medium Enterprises in Migori County, Kenya. The study recommends that the family owned firm management should aspire to create an environment where knowledge sharing is cultivated through effective processes, enhanced collaboration, openness and availing of rewards to enable improved non-financial performance. Policy makers, on the other hand, should create a model knowledge sharing framework for family owned firms aimed at improving non-financial performance.