Knowledge Management Strategy and Organizational Change in Commercial Banks in Kenya

Abstract

<p><em>This study attempts to establish the relationship between knowledge management strategy and organizational change in commercial banks in Kenya. Knowledge management strategy can assist a firm to induce individuals to offer their knowledge voluntarily for a firm’s use, achieve distinctive advantage through full exploitation of a firm’s knowledge base, build institutional memory and protect it from prying competitors. It can influence amongst others a successful organizational change. The study employed a descriptive cross sectional survey. A total of 39 commercial banks in operation (not under statutory management) were surveyed. Primary data was collected from the respondents using a questionnaire.Analysis utilized largely the median and mode as measures of central tendency while the inter-quartile range was used as a measure of dispersion. Percentages and frequencies were also utilised to present part of the findings. Pseudo R square statistics were used as a measure of association between knowledge management strategy (independent variable) and organizational change (dependent variable). The study found that commercial banks in Kenya primarily employ proactive and moderate knowledge management strategies. Both strategies had a strong association with the organizational changes that the commercial banks have undergone. The most popular form of organizational change was found to be a mix of both revolutionary and evolutionary change. The findings of this study are consistent with theory in that knowledge management strategy was found to have given banks dynamic capabilities in pursuit of a firm’s goals such as organizational change.</em></p>