Effect of Intra-Firm Institutionalization of Explicit Knowledge on Employee Performance in Energy Sector Organizations in Kenya

Abstract

Knowledge has become the basis of every organization in creating and sustaining competitive differentiation.There are howeverno studies which explain whether organizations in the energy sector in Kenya institutionalize knowledge for better employee performance. This study aimed at determining the effect of intra-firm institutionalization of explicit knowledge on employee performance in energy sector organizations in Kenya. The study was guided by the following objectives: to determine the effect of explicit knowledge acquisition, processing and dissemination on employee performance. The study adopted explanatory research design using both qualitative and quantitative research design. The target population was 22,173 employees in 9 Energy Sector Organizations in Kenya. Out of 320 employees that were targeted, 242 responses were received as valid constituting 76% response rate. Survey data was collected by use of a structured questionnaire. Data reliability was done using Cronbach’s Alpha formula and factor analysis was used to determine data validity. Normality test for the dependent variable was done using Kolmogorov-Smirnov Test. Descriptive statistics, correlation analysis and multiple regression models were used to test whether explicit knowledge acquisition, explicit knowledge processing and explicit knowledge dissemination had any effect on employee performance. It was found that institutionalization of explicit knowledge had a positive significant effect on employee performance since all the identified factors were significantpredictors of employee performance. Combined, the three independent variables without the moderating variable explain 73% variation in employee performance and 86% with moderating variable. The study therefore concluded that since intra-firm institutionalization of explicit knowledge is a positive significant predictor of employee performance, employers should give attention to this area in order to enhance the performance of their employees. The study established that employee performance is affected by quality of work, job knowledge, adaptability and reliability on the job. This is one area where Human Resource professional can play an important role in helping line managers design jobs that effectively enable employees measure the quality of their work, understand the job and be able to measure their adaptability and reliability on the job.