Effect of Knowledge Management on Organizational Performance in the County Governments of Kenya

Abstract

Some forms of intellectual capabilities are transferable, intrinsic knowledge is not easily copied; therefore, the key objective of management is to improve the process of acquisition, integration and usage of knowledge, which is exactly what knowledge management, is all about. Currently in Kenya, the demand from clients for quality education, health and skilled labour has caused concern in the labour market; lack of skills has led to a new interest in training. This study was aimed at determining the effect of knowledge management on organizational performance of the County Government of Kakamega. The theories adopted were: Human Capital Theory and Resource Based View Theory. The study also adopted descriptive survey research design. The data was collected through questionnaires. Questionnaires were distributed to various respondents of the County Government of Kakamega, with a population of 1031 employees and a sample size of 288 staff. Reliability of the research instrument a Coefficient Alpha of = 0.952 was obtained. Collected data was coded, tabulated then analyzed descriptively and by use of Inferential Statistics aided by Statistical Package for Social Sciences to determine the means, frequencies, standard deviations as well as the Regression Coefficients. The findings indicated that there was a statistically significant effect of knowledge management on organizational performance of the County Government of Kakamega” (β=0.428; p<0.001). The study thus recommends that the County Governments should encourage and support knowledge creation and dissemination through provision of adequate financial and human resources and ensure an operational knowledge management unit for staff is established in the County for enhanced organizational performance. The findings would be important to understand the human capital and operational performance model by the industry, academic and various government agencies.