EFFECT OF STRATEGIC KNOWLEDGE CAPABILITY ON PERFORMANCE OF COMMERCIAL BANKS IN KENYA
Abstract
The turbulent business environment, global trends and the stringent competition in the market place have resulted into significant changes in the way firms operate. Some of these changes are those aimed at ensuring continued survival of the firm in the market place. Companies have had to adapt to these changes by making modifications in their internal environment in terms of innovation, increasing competitiveness, employee training, increasing flexibility, improving processes and business performance. At the center of all these changes is strategic knowledge capability. The question is; how do firms develop knowledge capability, and what is the effect of strategic knowledge capability on a firm’s performance? This project sought to find out the relationship between strategic knowledge capability and performance in commercial banks in Kenya. The main objective was to analyze the relationship between strategic knowledge capability and firm performance. Specifically, the study sought to find out how organizational structure impacts on the performance of commercial banks in Kenya, establish the effect of organizational culture on this performance, determine the effect of people characteristics on performance, analyze how information technology influences performance in commercial banks in Kenya. The study employed the social survey methodology of study, using questionnaire as the main tool for data collection. The data collected was analyzed quantitatively using both descriptive and inferential statistics to help establish how possession of strategic knowledge capability affects the performance of commercial banks in Kenya. To actualize this, data was collected using a single questionnaire distributed to each of the Chief Executive Officers of all forty-two banks. A drop and pick later procedure for questionnaire administration was used to distribute them. Data gathered was then analyzed quantitatively using both descriptive and inferential statistical tools; specifically, Analysis of Variance (ANOVA).
Key Words: organizational structure, organizational culture, people characteristics, information technology, Performance
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DOI: http://dx.doi.org/10.61426/sjbcm.v5i1.666
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