Knowledge sharing, organizational learning and performance of top 100 medium enterprises in Kenya

Abstract

This study was grounded on the view that organizations have hidden reservoirs of knowledge in terms of tacit and explicit knowledge, which can be tapped to improve performance. This is according to the postulations of the knowledge and resource based theories. Whereas there is evidence of the direct influence of knowledge sharing and performance, this study advanced a proposition that organizational learning has effect on such influence. Using a structured questionnaire, data on the variables were obtained from a cross-section of 65 medium-sized companies to empirically test the proposition. The companies were among 100 medium sized companies categorized as top performing medium-sized companies in Kenya by KPMG and Nation Media Group in the year 2013. The study established that knowledge sharing had a positive and statistically significant effect on organizational performance. Conversely and contrary to expectation, the study established that organizational learning had neither direct nor mediating effect on organizational performance. In spite of this finding, the study supports the anchoring theories that performance differences across firms can be attributed to the variance in firms’ resources and capabilities. Policy makers can utilize the findings of this study to formulate sound support strategies for medium enterprises. Further, areas of inquiry have been put forth based on the limitations inherent in the study. Key Words: Knowledge Sharing, Organizational Learning, Firm Performance, Medium- Sized Enterprises