Effect of Knowledge Management on Firm Performance in Commercial Banks in Nakuru, Eldoret And Kisumu

Abstract

The study is set out to assess the effect of knowledge management on firm performance, Resource-based view will inform the study. The study will employ explanatory research design. Target population will be a census 133 bank branch managers within the three towns; Nakuru, Eldoret and Kisumu. Five point Likert scale structured questionnaire will be formulated for data collection. Data collected will be analyzed quantitatively through the use of descriptive statistics and multiple regression models.  We found that knowledge acquisition knowledge conversion knowledge application and knowledge protection had a positive and significant effect on firm performance. The study occludes that knowledge management very crucial for firm performance. There is also need for firms to have processes for exchanging knowledge between individuals, business partners and supplier. There is also need for the firms to have a process for distributing knowledge throughout the organization so as to enhance the design of new products/services. There is need for a process that matches sources of knowledge to problems and challenges so as to enhance the development of new products/services. Firms need to have processes that protect knowledge from theft within the organization need to be implemented.

Keywords: Knowledge Acquisition Knowledge Conversion Knowledge Application and Knowledge Protection