Journal of Business & Economic Policy

Knowledge Strategy and Performance of Manufacturing Firms in Kenya
Henry K. Kombo, Peter K’Obonyo, Martin Ogutu

Abstract
Organizational knowledge is increasingly gaining attention in strategic management as a source of competitive advantage and superior performance. However, few empirical studies have examined the relationship between knowledge strategy and organizational performance. To enhance competitiveness and performance, manufacturing firms in Kenya are managing knowledge as a resource. However, past studies in Kenya have not examined the relationship between knowledge strategy and performance of the firms. The objective of this study was to determine the effect of knowledge strategy on performance of manufacturing firms in Kenya. A stratified sample of 266 firms representing twelve sub-sectors of manufacturing sector was used. Primary data was collected from 184 firms using structured questionnaire administered to the managers of the firms. The results revealed positive and significant relationship between knowledge strategy and performance. The paper concludes that higher levels of knowledge strategy would lead to improved organizational performance.

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