EFFECT OF KNOWLEDGE MANAGEMENT CAPABILITIES ON COMPETITIVE ADVANTAGE IN THE KENYA HOSPITALITY INDUSTRY: THE CASE OF FIVE STAR HOTELS IN KENYA
Jane Mwikali Kiseli - Master of Business Administration, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Thomas A. Senaji, R. Eng - Lecturer, Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
Many Kenyan business establishments have started implementing knowledge management programs in their organizations. However, knowledge management in the hospitality industry has not accomplished the same scale of applications and empirical research as in other fields, particularly in the Kenyan hospitality industry. Less optimistically, the industry has unique characteristics that impact on its potential sustainability. The majority of hotels in Kenya operate with limited resources and tend to focus on day-to-day business operations. They are also bogged with high turnover rate of employees who leave the industry with tacit knowledge. The institutions have to make do with fresh recruits it hires with no explicit knowledge in hotels operation. The purpose of this study was to establish the effect of knowledge management capabilities on the competitive advantage of five star hotels in Kenya. The study specifically focused on how technology KM infrastructure capability, social KM infrastructure capability, KM process capability and KM innovation agility affect the competitive advantage of five star hotels in Kenya. A descriptive research design was applied in this study. A total of 313 management staff in the five star hotels in Nairobi formed the possible respondents of this study. A sample of 172 respondents was taken using stratified random sampling across the top, middle level and low level management staff. From each stratum, simple random sampling was employed to pick the respondents. Primary data was collected through the use of structured questionnaires. The researcher analyzed the quantitative data using descriptive statistics by applying the statistical Package for Social Science (SPSS V.21.0) and presented through percentages, means, standard deviations and frequencies. In addition, the researcher conducted a multiple regression analysis so as to determine the effects of each of the four variables on competitive advantage. With regard to the Hotel’s organizational structure, the study established that organizations design processes to facilitate knowledge exchange across functional boundaries. Regarding measures of People (T-shaped Skills), the study established that organization’s members are specialists in their own field of expertise and that organization’s members can make suggestions about others tasks. With regard to the conversion process, the study established that organization has processes for absorbing knowledge from individuals into the organization. Concerning competitive advantage, the study established that organization uses knowledge management to widen the array of products without increasing costs. The study concludes that at the hospitality industry, organizations design processes to facilitate knowledge exchange across functional boundaries. This study recommends that this understanding be utilized to ensure that the relevant information regarding the organization and the industry be provided to employees at all time and specifically provided on time. Since there is a 36% error term, other studies should be done to investigate the effect of knowledge management capabilities on the competitive advantage by other organizations on different industries rather than the hospitality industry. Examples of such industries like insurance and banking would be ideal. The study can be done by focusing on different variables not tackled in this study.
