Knowledge Management Value Chain Practices and Operational Performance of Saccos in Kenya

Abstract

In the present day business environment that is characterized by market changes such as globalisation, and interconnectivity, business organisations are required to face new challenges, especially the changing nature of competition coupled with the enhanced dynamism and complexity of the environment in which they operate. There is need for the firms to come up with appropriate strategies such as development of internal strategic capabilities to deal with the uncertainty. Knowledge management (KM) is one such capability that will create the necessary ability for a firm to gain operational competence. Through the systematic acquisition, creation, sharing, and use of knowledge, organisations develop, renew and exploit their knowledge-based resources, thereby allowing them to be proactive and adaptable to external changes and attain competitive success. The objective of the study was to establish the role of knowledge management value chain practices on operational performance of Sacco services in Kenya. The research adopted a descriptive research design. Data was collected using a selfadministered questionnaire that was distributed to 28 senior and middle level managers at the firm that were selected randomly. The findings were that with the adoption of KM by Saccos, the firm‟s operational performance indicators had changed positively while the level of customer satisfaction had improved by a high margin. In addition, the level of customer loyalty and the service turn time had also registered a positive result which was translated to improved performance measures such as speed of responsiveness, product availability and higher rate of innovation. The limitation of the study was that it did not account for certain behavioral factors – related to employees‟ and managers‟ characteristics, attitudes, and experience levels – as well as organizational factors – such as structure, size, and business nature – that play a moderating role in the relationships highlighted in this study.