Knowledge Management Practices and Performance of Micro-Finance Institutions in Kenya: A Case of Uwezo Micro-Finance Bank

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KNOWLEDGE MANAGEMENT PRACTICES AND PERFORMANCE OF MICRO-FINANCE INSTITUTIONS IN KENYA: A CASE OF UWEZO

MICRO-FINANCE BANK

BENJAMIN CHARO MTAWALI D53/CTY/PT/30887/2015

A RESEARCH PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION (HUMAN RESOURCE MANAGEMENT) OF

SCHOOL OF BUSINESS, KENYATTA UNIVERSITY

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DECLARATION

This project is my original work and has not been submitted for examination for a degree in any other university.

Signature……… Date: ……….. Benjamin Charo Mtawali

D/53/CTY/PT/30887/2015

This project has been submitted for examination with my approval as the university supervisor.

Signature……… Date: ……….. Dr. David Kiiru

Department of Business Administration School of Business

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DEDICATION

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ACKNOWLEDGEMENT

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TABLE OF CONTENT

DECLARATION ... ii

DEDICATION... iii

ACKNOWLEDGEMENT ... iv

TABLE OF CONTENT ...v

LIST OF FIGURES ... ix

LIST OF TABLES ...x

ABBREVIATIONS AND ACRONYMS ... xi

OPERATIONAL DEFINITION OF TERMS ... xii

ABSTRACT ... xiii

CHAPTER ONE: INTRODUCTION ...1

1.1 Background of the Study ...1

1.1.1 Organizational Performance ...3

1.1.2 Knowledge Management Practices ...4

1.1.3 Profile of Uwezo Micro-Finance Bank ...5

1.2 Statement of the Problem ...6

1.3 Objectives of the Study ...7

1.3.1 General Objective ...7

1.3.2 Specific Objectives ...7

1.4 Research Questions ...8

1.5 Significance of the Study ...8

1.6 Scope of the Study ...9

1.7 Limitations of the Study...9

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CHAPTER TWO: LITERATURE REVIEW ...11

2.0 Introduction ...11

2.1 Theoretical Review ...11

2.1.1 Knowledge-Based View ...11

2.1.2 Organizational Knowledge Creation Theory ...12

2.1.3 Human Capital Theory ...14

2.1.4 Learning Organization Theory ...15

2.2 Empirical Review...16

2.2.1 Knowledge Acquisition and Organizational Performance ...21

2.2.2 Knowledge Conversion and Organizational Performance ...22

2.2.3 Knowledge Application and Organizational Performance ...23

2.2.4 Knowledge Protection and Organizational Performance ...24

2.3 Summary of Literature Review and Research Gaps ...25

2.4 Conceptual Framework ...26

CHAPTER THREE: RESEARCH METHODOLOGY ...28

3.2 Research Design...28

3.3 Target Population ...28

3.4 Sample and Sampling Technique...29

3.5 Data collection instrument and procedure ...30

3.6 Reliability and Validity of Data Collection Instrument ...30

3.6.1 Reliability of Research Instrument ...30

3.6.2 Validity of Research Instrument ...31

3.7 Data Analysis and presentation ...31

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3.8 Ethical Consideration ...33

CHAPTER FOUR: DATA ANALYSIS, PRESENTATION, AND DISCUSSION ...34

4.1.1 Response Rate ...34

4.1.2 Demographic Information ...35

4.1.2.1 Age of the Respondent ...35

4.1.2.2 Duration of Employment ...35

4.1.2.3 Job Title ...36

4.1.2.4 Highest Level of Education ...37

4.2 Descriptive Statistics ...38

4.2.1 Knowledge Acquisition Practices ...38

4.2.1.1 Opinion on Knowledge Acquisition ...38

4.2.1.2 Impact of Knowledge Acquisition on Organization Performance ....39

4.2.2 Knowledge Conversion Practices ...41

4.2.2.1 Knowledge Sharing Practices...41

4.2.2.2 Opinion on Knowledge Sharing Practices ...42

4.2.2.3 Impacts of Knowledge Conversion Practices...42

4.2.3 Knowledge Protection Policies/Strategies ...44

4.2.3.1 Policies of Knowledge Protection ...45

4.2.3.2 Impact of Knowledge Protection Practices on Organizational Performance ...45

4.2.4 Knowledge Application Practices ...46

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4.3 Inferential Statistics ...49

4.3.1 Bivariate Correlations ...49

4.3.2 Regression Analysis ...50

CHAPTER FIVE: SUMMARY, CONCLUSION, AND RECOMMENDATIONS ...54

5.2 Summary of the Findings ...54

5.3 Conclusion ...56

5.4 Recommendations ...57

5.5 Suggestions for Further Research ...59

REFERENCES ...61

APPENDICES ...69

APPENDIX I: LETTER OF INTRODUCTION ...69

APPENDIX II: QUESTIONNAIRE ...70

APPENDIX III: LETTER TO NACOSTI ...77

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LIST OF FIGURES

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LIST OF TABLES

Table 3.1: Target Population...29

Table 3.2: Sampling Matrix ...30

Table 3.3: Reliability test ...31

Table 4.1: Response Rate ...34

Table 4.2: Age of the Respondent...35

Table 4.3: Duration of Employment ...36

Table 4.4: Job Title ...36

Table 4.5: Level of Education ...37

Table 4.6: Knowledge Acquisition Practices ...38

Table 4.7: Opinion on Knowledge Acquisition ...39

Table 4.8: Impact of Knowledge Acquisition of Organization Performance ...39

Table 4.9: Knowledge Sharing Methods ...41

Table 4.10: Opinion on Knowledge Conversion ...42

Table 4.11: Impact of Knowledge Conversion ...43

Table 4.12: Presence of Knowledge Protection Policies/Strategies ...44

Table 4.13: Knowledge Protection Policies/Strategies ...44

Table 4.14: Policies for Knowledge Protection ...45

Table 4.15: Impact of Knowledge Protection on Organizational Performance ...46

Table 4.16: Knowledge Application ...47

Table 4.17: Use of Newly Acquired Knowledge ...47

Table 4.18: Impact of Knowledge Application on Organization Performance ...48

Table 4.19: Bivariate Correlation Matrix...49

Table 4.20: Model Summary ...50

Table 4.21: ANOVA Results ...51

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ABBREVIATIONS AND ACRONYMS

GDP Gross Domestic Product

HR Human Resource

IT Information Technology

KBV Knowledge Based View

KM Knowledge Management

PLS Partial Least Square

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OPERATIONAL DEFINITION OF TERMS

Knowledge Acquisition: The process of collecting knowledge from members of the organization or other sources. Knowledge Application: Process by which individual persons use

knowledge gained by others devoid of either gaining or learning such knowledge

Knowledge Conversion: Ways through which knowledge can be transferred and translated.

Knowledge management practices: The processes used by organizations to get, show and put to work information within the organization for the purpose of improving and organizing business processes.

Knowledge Management: The process of managing knowledge through a systematically and organizationally specified process.

Knowledge Protection: The knowledge protection strategies laid in place in an organization.

Knowledge: Gaining information concerning a certain matter through experience or studying from an individual or a group of people

Microfinance Institutions: Institutions of finance which offers services such as accepting deposits, cash withdrawal, lending to small scale entrepreneurs with security who cannot afford loans offered by commercial banks.

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ABSTRACT

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CHAPTER ONE

INTRODUCTION 1.1 Background of the Study

Knowledge is a liquid surrounded affair, values, relevant data and master knowledge that give a structure to assessing and fusing new aptitudes and data. It emanates from and applies to those of the ability to understand (Gronau, Thim, Ullrich, Vladova& Weber, 2016). Knowledge has been termed as a vital resource of economy and possibly the single source of gaining competitive advantage (Intezari, &Gressel, 2017).

Today’s business world embraces the economy of knowledge to improve their corporate performance. It is the responsibility of an organization to have knowledge management on how to improve both their internal and external competitiveness (Tseng & Lee, 2014).Knowledge management means the process of managing knowledge through a systematically and organizationally specified process(Wong, Tan, Lee& Wong 2015). According to Botha, Kourie, and Snyman (2014), in its early stages knowledge management mainly focused on technical aspects and providing IT business solutions and afterward it included social aspects such as the community, development of individuals and the environment in which the organization is subjected to. However, successful implementation of knowledge management practices can enable the organization gain competitive advantage through development of knowledge assets (Heisig, Suraj, Kianto& Faith 2016).

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process involved in acquiring, integrating and using knowledge as it is exactly what pertains to knowledge management (Hasan, 2016). Information technology improvement and introduction of new innovations have enabled many organizations to remain competitive and these organizations are able to realize the changes from resource economy pertaining control of land, labour and capital and to knowledge economy of business value creation by adequately using intangible knowledge. On the other hand, the key concern has been how to successfully achieve knowledge management (Hasan, 2016).

To stay competitive and to survive, there is a need to continuously modify strategies so as to achieve the needs of the business and this regards to the knowledge management growth for last few years (Pearlson, Saunders, & Galletta, 2016). Organizations need a different kind of knowledge strategy for different kind of situations. According to Bishwas (2014), strategies regarding the management of crisis, knowledge and performance of organization are dependent to each other but not independent. The best transformation from tacit knowledge to explicit knowledge enables that organization to use the knowledge in finding the solution and to utilize any new chance and support organizational learning (Bishwas, 2014). The organizations that work as if their environment is still stable (old world of business), not only are they losing the competitive advantage; but also, they are facing massive financial losses. They also loseknowledge of best practice in a specific area of operations because of a critical employee’s departure and finally they lose in the relationship with a key client or supplier or a sponsor by the departure of key individuals (Muthee, 2014).

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implementation of knowledge management in organizations it is crucial for organizations to identify and understand the essential practices that will influence the success of knowledge management initiatives as these may have profound effects on the organization performance (Yiu& Law, 2014).These techniques are the main thrust in completing learning administration, they do not simply broad information in the organization by invigorating the formation of information, yet they likewise persuade the members of group to impart their insight and encounters to each other, enabling authoritative information to develop simultaneously and efficiently(Muthee, 2014). 1.1.1 Organizational Performance

Organizational performance can be evaluated by quality service and products, satisfying customers, market performance, service innovations, and employee relationships (Dess & Robinson, 2014). The author also state that organizational performance is based on balanced scorecard, stated that organizational performance can be appraised by return of investment, margin on sales, capacity utilization, customer satisfaction and product quality. In the same way, Richard, Devinney, Yip and Johnson (2011) identified that return on investment, sales and market growth, and profit are important factors that be measured by organization performance.

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Organizational performance is generally assessed with financial indicators such as return on investment or profit per share. Morin (2014) indicates that organizational performance are based on indicators such as return on investments, sales, profit per share Nevertheless, an organization has many other facets; among them are the people who work for it, the processes they use to achieve its objectives, and the environment in which the organization evolves. Kaplan and Norton’s (1992) Balance Scorecard includes financial and non-financial indicators of four main organizational facets: financial, costumers, internal processes and innovation and improvement

1.1.2 Knowledge Management Practices

The term knowledge was used very long ago by ancient scholars such as Plato and Aristotle. Over the years, scholars have attempted to redefine knowledge and explain its place in society. Sigala and Chalkiti (2007) observe that knowledge falls into two schools of thought, namely-rationalism and empiricism. Rationalism supports that knowledge is a-justified true belief, while empiricism argues that knowledge is created on an ongoing basis from experience (Habermas, 2015). More recent work provides a build-up approach for understanding what knowledge is and how it is developed. This new perspective can be summarized into the categorization of knowledge‘s building blocks which follows: data organized in meaningful format from information, which in turn is transformed into knowledge if the latter is purposefully attached to an operating function (Polanyi, 2012).

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such as patents and manuals, knowledge stored in electronic repositories such as a “best-practices” database, employees’ knowledge about the best way to do their jobs, knowledge that is held by teams who have been working on focused problems and knowledge that is embedded in the organization’s products, processes and relationships (Aggestam, 2015).

The processes of KM involve knowledge acquisition, creation, refinement, storage, transfer, sharing, and utilization. The KM function in the organization operates these processes, develops methodologies and systems to support them, and motivates people to participate in them. The goals of KM are the leveraging and improvement of the organization’s knowledge assets to effectuate better knowledge practices, improved organizational behaviors, better decisions and improved organizational performance (Polanyi, 2015). Although individuals certainly can personally perform each of the KM processes, KM is largely an organizational activity that focuses on what managers can do to enable KM’s goals to be achieved, how they can motivate individuals to participate in achieving them and how they can create social processes that will facilitate KM success (King, 2008).

1.1.3 Profile of Uwezo Micro-Finance Bank

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Uwezo Microfinance bank’s vision is to be the preferred provider of financial solutions for wealth creation and improved livelihoods with a mission to provide sustainable business solutions for wealth creation and improved livelihoods. The bank’s co-values include hard work and teamwork, Integrity, Professionalism, Learning and Innovation, Equal opportunity employer, Reward good performance and concern for the environment (Naikuru, 2017).

1.2 Statement of the Problem

Knowledge has in the recent past been recognized as the organization’s most important asset (Gituma, 2017). Dlamini (2017) indicated that with knowledge being a very complicated asset, it had received special treatment from the organization’s management, unlike other resources. Despite the rising popularity of knowledge management across different organizations of the world, in Kenya, knowledge management has not received too much attention from the small and medium-sized enterprise.

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Despite the knowledge management related challenges facing the Microfinance sector in Kenya, there exist too few scholarly works in Kenya relating to it. Studies by Yusuf and Wanjau (2014), Muthee (2014), and Sawe (2017) are among the few studies in Kenya that have sought to investigate the knowledge management and its effect on the wellbeing of the key institutions in Kenya. In this regard, the latter will be different from the former in the sense that none of these studies plainly concentrated on knowledge management and its influence on organizational performance in microfinance institutions in Kenya. It is to this concern that; this study sought to fill the gap by investigating the effect of knowledge management practices on organizational performance with Uwezo Micro-Finance Bank as the case study.

1.3 Objectives of the Study 1.3.1 General Objective

The general objective of the study sought to assess the effect of knowledge management on organizational performance in Microfinance institutions in Kenya.

1.3.2 Specific Objectives

i. To determine the effect of knowledge acquisition on the performance of microfinance institutions in Kenya.

ii. To establish the effect of knowledge conversion on the performance of microfinance institutions in Kenya.

iii. To find out the effect of knowledge protection on the performance of microfinance institutions in Kenya.

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1.4 Research Questions

i. How does knowledge acquisition affect the performance of microfinance institutions in Kenya?

ii. To what extent does knowledge conversion affect the performance of microfinance institutions in Kenya?

iii. Does knowledge protection affect the performance of microfinance institutions in Kenya?

iv. How does knowledge application affect the performance of microfinance institutions in Kenya?

1.5 Significance of the Study

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microfinance institutions consequently impacting on their performance. It would nevertheless positively impact the GDP of the country.

1.6 Scope of the Study

The study was undertaken at Uwezo Micro-Finance Bank. The selection of this bank was driven by the fact that Uwezo Micro-Finance Bank is one of the fastest growing microfinance institutions in Kenya and which has embraced the knowledge management practices. In this regard, the period under study was between the years 2013 to 2017. This period was chosen because it is the period during which Uwezo Micro-Finance Bank has been said to be among the leading micro-finance enterprises in Kenya hence the literature and information during this period will significantly be relevant to the problem under investigation.

1.7 Limitations of the Study

The researcher was faced with the problem of time constraints on the part of the respondents while undertaking the study. This led to having less than the expected respondents to complete the questionnaire. Although faced with the time constraint, every effort was made to ensure all the respondents fully completed the questionnaire. The study was also not representative; did not investigate the effect of knowledge management on the performance of the entire industry or other industries; therefore, the findings of the study cannot be generalized to other sectors. In this regard, further studies in other industries may be undertaken to establish the effects of knowledge management on organizational performance.

1.8 Organization of the Study

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CHAPTER TWO

LITERATURE REVIEW 2.0 Introduction

This chapter contains the theoretical review of the study, the empirical review, literature on the independent and dependent variables, summary of the literature review and the research gaps in the study.

2.1 Theoretical Review

The study was based on four theories which are closely related to knowledge management:

2.1.1 Knowledge-Based View

The knowledge-based view (KBV) of the firm thinks about learning as the most deliberately critical asset of a firm. Its advocates contend that since learning based assets are normally hard to mimic and socially perplexing, heterogeneous information bases and capacities among firms are the real determinants of maintained upper hand and prevalent performance of the corporate (Kitchlew, 2015). This learning is implanted and conveyed by different elements including hierarchical culture and personality, approaches, schedules, archives, frameworks, and the organizational workforce (Kitchlew, 2015).

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and held by individual not organizations, and finally, firms exist since business sectors are unequipped for organizing the learning of the individual specialty. This is the part of administration within the organization. The comprehension of information as an asset makes the notional organization with the asset based view (Hughes, Powell, Chung and Mellahi, 2017). Another explanation behind the information based seem to be an expansion of the asset based view is the impression of associations to be heterogeneous substances containing learning(Mitra, O'Regan&Sarpong, 2017).

As explained by Mitra, O'Regan and Sarpong (2017) the reason for knowledge management is to catch an organization's aggregate aptitude and appropriate it wherever it can accomplish the greatest result. This is by the information based perspective of the firm which recommends that the wellspring of upper hand exists in the business. In this research, the knowledge-based view is used as a management concept which provides the firm with strategies for achieving competitive advantage. It is the approach used to form the basis for the establishment of human capital involved in the basic and routine activities of the firm and further introduces the strategic asset which forms the basis of acquiring competitive advantage for organizations. These strategic assets are difficult to imitate and socially complex of which knowledge can have these characteristics. In this regard, there is a need to manage this vital asset that is, knowledge (Hughes et al., 2017).

2.1.2 Organizational Knowledge Creation Theory

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assumption that an organizational knowledge developed through a ceaseless exchange amongst tacit and explicit learning by means of four examples of associations, socialization, combination, internalization, and externalization. Correct knowledge is systematized information transmittable in formal, orderly dialect though implicit information is the customized information that is difficult to formalize and impart and profoundly established in real life, duty and contribution in setting (Nonaka& Toyama, 2015).

Socialization is the connection between people through systems, for example, perception, impersonation or apprenticeships. Combination involves consolidating unequivocal learning through gathering and discussion or utilizing data frameworks (Alkhabra, Haron& Abdullah, 2017). Internalization changes tacit knowledge into implicit learning though externalization changes over explicit knowledge into exact information. The theory additionally expresses that authoritative information creation happens when every one of the four methods of information transformation frame a consistent cycle activated by such activities as group collaborations, exchange, metaphors, coordination, documentation, experimentation, and learning by doing(Alkhabra, Haron& Abdullah, 2017). Organizational knowledge creation isan upward winding procedure from the individual level to the aggregate gathering level, and afterward to the corporate level, occasionally to the inter-organizational level (Nonaka& Toyama, 2015).

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2.1.3 Human Capital Theory

The human capital theory developed by Becker assists the comprehension and improvement of worldwide ability administration, both for scholastics and human asset professionals (Murray, 2016). This theory sees human capital as a type of asset that organizations can put resources into and is of incentive to the organizations to the degree that it makes the organization profitable (Murray, 2016). According to Garavan, McCarthy and Carbery (2017), it is a theory which is worried about how individuals in an organization contribute their insight, expertism, and capacities to upgrading authoritative ability and the essentialness of that commitment. Organizations can utilize human asset administration in an assortment of approaches to expand their human capital for instance; they can purchase human capital in the market by offering attractive remuneration or within the organization by offering employees training and development opportunities (Murray, 2016).

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In this research, the theory was used as a critical driver of innovation and competitive advantage in today’s knowledge-based economy. In this regard, knowledge management provides the strategies for obtaining, growing and sustaining human capital in organizations (Murray, 2016). This implies that successful implementation of the knowledge management processes in an organization ensures proper acquisition and growth of human capital which in turn improves performance.

2.1.4 Learning Organization Theory

Siemens (2014) describes learning as detecting and correcting errors. To correct a mistake, an individual must concede that he/she committed an error. In the greater part of our organizations, an error is seen as an individual error (Siemens, 2014). Numerous execution assessment frameworks stress the rate of error and constraining the quantity of mistakes, additionally making a culture where denying mistakes is in the person’s best advantage.

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association functions; to shape an arrangement; and to cooperate straightforwardly, in groups, to accomplish that arrangement (Siemens, 2014).

The underlying rationale for learning organizations is that in circumstances of quick change just those that are adaptable, versatile and gainful will exceed expectations. For this to happen, it is contended, associations need to find how to tap individuals' responsibility and ability to learn at all levels. According to this theory, a learning organization has the following five characteristics; systems thinking, personal mastery, mental models, shared vision and team learning ( Siemens, 2014). In this research, the theory was used as an approach to make the organization versatile to the external condition and ceaselessly upgrade its abilities to change and adjust through the advancement of group and also singular learning and by utilizing the aftereffects of figuring out how to accomplish better outcomes. In this respect, knowledge management processes safeguard the knowledge of the employee hence creating a competitive advantage.

2.2 Empirical Review

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analysis methods. The study found that there was a great significance of knowledge management to Iraqi higher-education institutions

Abdel, Gawaher, and Mohamed (2013) investigated the role of knowledge management in enhancing organizational performance in Egyptian organizations, using the questionnaire to collect the required information. The study sought to give a comprehension of variables that are engaged with executing information administration idea to improve hierarchical execution and give an evaluation device that encourages associations to survey their insight administration capacities. For this situation, it looked to recognize the conceivable existing holes in their insight administration frameworks and recommend the conceivable approaches to improve authoritative execution. The outcome demonstrates that all components of information administration capacities have a critical positive association with all proportions of the execution at 1% level of criticalness; it implies that there is an awesome relationship between learning administration abilities and authoritative execution.

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transformational leadership was strongly correlated to knowledge management processes and the performance of the organization.

In the research of Noruzy, Dalfard, Azhdari, Nazari-Shirkouhi,andRezazadeh (2013) sought to examine the relationship between transformational leadership and and organizational performance. The study targeted 106 Iranian manufacturing firms and the total number of respondents who participated in the study was 280. Structural equation modeling was used to analyse data and the findings show a positive and significance between the variables under study

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Villar, Alegre, and Pla-Barber (2014) sought to establish the role of knowledge management practices on export intensity in SMEs in a mature and global, non-high-tech industry. A quantitative study with structural equation modeling was carried out on a sample of 157 Spanish and Italian manufacturing companies. The study found a significance effect on dynamic capabilities on export which showed that knowledge management implementation in important but it’s not significance to enhancing exports processes which necessitates the need for more convincing abilities in the reconfiguration of such knowledge.

Ngahu (2017) sought to investigate trends in the dimensions of low, medium, and high knowledge management (KM) capability of business process outsourcing (BPO) firms and explore the trends in BPO performance with different levels of KM capabilities of BPO firms. A survey was employed to collect data on managers from 605 firms. K-means cluster analysis was performed on the aggregate measures of the four KM capability dimensions and BPO performance to reveal trends. Subsequently, MANOVA was used to evaluate the effects of four firm characteristics on KM capability, and individual ANOVA tests were performed to examine the specific differences among the four dimensions. They found that each dimension of knowledge management capability has a positive effect on business process outsourcing performance. Knowledge application was found to be the most significant dimension correlated to business process outsourcing performance. They concluded that knowledge management capability is an effective tool to enhance performance as it provides organizations with competitive advantages that make it difficult for competitors to imitate.

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population was the banking sector in Pakistan. The study methodology involved a survey design, questionnaires and descriptive statistics. The study established that through knowledge management practices the organization is able to provide quality services to its clients utilize its resources efficiently, gain more profit hence improve its overall performance.

Nnabuife and Ojukwu (2015) studied the extent to which knowledge management improves the performance of selected commercial banks in Awka Nigeria. The study was explicitly set out to determine if there is a significant relationship between knowledge identification and organizational performance. It also examined the extent to which knowledge acquisition affects the performance of an organization. This study employed a descriptive research design; the primary source of data was the primary instrument used for this study. Pearson’s product moment correlation was used to analyze the data. The findings revealed knowledge identification positively and significantly influences the performance of an organization.

Also, Ha, Lo and Wang (2016) investigated the effects of knowledge management on firm performance. The study employed explanatory research design, and the target population was a census of 133 banks branch managers within the three towns; Nakuru, Eldoret, Kisumu. Data was collected through a five-point Likert scale structured questionnaire and was analyzed quantitatively using descriptive statistics and multiple regression models. The study findings indicate that knowledge management is vital in improving the organizational performance.

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studies. The design of the present study is descriptive (correlation, causal). The sample of this study comprised of 256 members of administrative staffs of the Mazandaran University of Medical Sciences, who were selected by simple random sampling. The results of this study revealed that transformational leadership has a positive and meaningful effect on the knowledge-management processes and the organizational innovation. Also, it was found that the knowledge-management processes have a mediating role between transformational leadership and organizational innovation.

2.2.1 Knowledge Acquisition and Organizational Performance

Knowledge acquisition is the improved use of existing knowledge and efficiently producing new knowledge through active conversation and externalized and distributed as new knowledge Grand, (2016). Some examples of knowledge acquisition include conducting an external survey, acquiring a knowledge-rich firm, sending employees to external training, hiring an employee, purchasing a data set, monitoring technological advances, purchasing a patented process, and gathering knowledge through competitive intelligence (Mubuyaeta, 2016). The methods and activities of interaction, feedback, innovation, brainstorming, and benchmarking enable it. It is captured by six factors: valuing employee’s attitudes and opinions and encouraging employees to up-skill; having a well-developed financial reporting system; being market focused on actively obtaining customer and industry information. Also, being sensitive to information about changes in the marketplace; employing and retaining many people trained in science, engineering or math; working in partnership with international customers; and getting information from market surveys.

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is an essential benefactor to association’s performance. Ahmed, Fiaz,andShoaib (2015) alluded that if organization’s authoritative segments possess focal system positions which encourage access to crisp learning built up by different divisions performance can be upgraded. By the same token Me and Abdela (2016) argued that literature demonstrates that learning obtaining and information sharing inside of an association brought about the improvement of profitability. In the above view, it can be assumed that knowledge acquisition has a positive impact on organizational performance.

2.2.2 Knowledge Conversion and Organizational Performance

Knowledge conversion refers to the process of knowledge management that makes current knowledge useful. Knowledge conversion is made conceivable through the strategies and exercises of blend, refinement, joining, mix, coordination, appropriation, and rebuilding of learning (Ayub, Hassan, Hassan&Laghari 2016). This process enables a firm to make individual knowledge useful to the company by converting personal knowledge into firm knowledge. One of the mechanisms is through the four phases that have been proposed by Ayubet al., (2016) which are socialization, externalization, combination, and internalization. These processes also allow the firm to replace knowledge that has become outdated. Conversion oriented KM processes are those geared toward making existing information helpful. A portion of the procedures that empower information transformation are the association's capacity to arrange, incorporate, join, structure, facilitate, or disseminate learning (Ngah, Tai and Bontis, 2016).

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regularly refered to systems for encouraging coordination are standards and orders, sequencing, schedules, and gathering critical thinking and basic leadership.

As stated by Kushwaha and Rao (2015), information change upgrades comprehension between workers inside of an association which brings about item and procedure innovation. Along the same line, Ngah, Tai,andBontis (2016) concluded that Knowledge transformation could improve an individual ability to act which in turn can enhance organizational performance. Also, Ayub et al. (2016) alluded that of late Knowledge transformation had increased personal learning which enables improved or new meanings of issues and plans and more intense errand execution. For the gathering, granted data considers helpful decision making and necessary thinking. On this subject of literature discussed it could be assumed that Knowledge conversion has a positive impact on organizational performance. All dimensions of knowledge management capabilities (knowledge acquisition, knowledge conversion, knowledge application, and knowledge protection) have direct and a significant relationship with organizational effectiveness (Ngah, Tai &Bontis, 2016).

2.2.3 Knowledge Application and Organizational Performance

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Delen, Zaim, Kuzey,andZaim (2013) noted that the successful use of information had helped firms to enhance their proficiency and diminish costs. Learning application likewise encourages an organization to upgrade its business execution by having up and coming data and information. For information to impact hierarchical execution, it must be utilized to help the company's procedures. Henceforth, it is through information usage that procured learning can be changed from being a potential capacity into an acknowledged and dynamic ability that impacts authoritative execution (Lin, 2014). It is worried about how to use learning to deliver business esteem since information must be acknowledged when it is connected to tackle issues. Learning forms related with the utilization of information incorporate capacity. The down to earth usage of learning has helped firms to enhance their effectiveness and decrease costs. Accordingly, learning application has a noteworthy association with organizational performance (Lin, 2014). 2.2.4 Knowledge Protection and Organizational Performance

Protection of knowledge asset is a basic assignment in the organization’s learning administration execution. Security is dependably the essential worry in any association's administration data frameworks (Hislop, 2013). Securing corporate information requires clear yet gritty approaches to guarantee the learning resource is in its protected state dependably. Information security is vital for productive working and control inside associations. This would ordinarily incorporate the utilization of copyright and licenses alongside data innovation frameworks that enable information to be anchored by filename, username, secret word and document sharing conventions that attribute rights to approved clients.

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be recognized that a very significant amount of organizational knowledge resides in the employees in which case softer methods of protecting this knowledge through employee incentives that govern the behavior and conduct of employees should be implemented as well (Omotayo, 2015).

However, knowledge protection is regularly testing partially on the grounds that the copyright laws that are planned to ensure learning are constrained in their treatment of the information condition (Hislop, 2013). In making adequate controls to speak to the way of learning used as a piece of an affiliation, the organization needs to consider two estimations; learning authenticity and data utility (Hislop, 2013). Authenticity is worried about precision, consistency, and certification; utility is worried about clarity, significance, congruity, and hugeness. Learning insurance can prompt items and administrations that are hard to duplicate so contender can't see how to create same items and departments which will keep up the upper hand and enhanced performance (Omotayo, 2015).

2.3 Summary of Literature Review and Research Gaps

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Brasnav (2013) examined the various relationships between transformational and transactional leadership, knowledge management (KM) processes and organizational performance. Results indicate that transformational leadership has strong and positive effects on KM processes and organizational performance after controlling the effects of transactional leadership. However, this research focused on one company in Indonesia while there are many companies in Indonesia and around the world which may generate different results due to the different environment. Furthermore, Donate and de Pablo (2015) conducted a study to determine the role of organizational leadership- knowledge – oriented leadership in knowledge management (KM) initiatives that seek to achieve innovation. The findings showed that, although KM practices themselves are essential for innovation purposes, the existence of this kind of leadership encourages the development and use of KM exploration (i.e., creation) and exploitation (i.e., storage, transfer, and application) practices. Because of this development and the use of KM practices, the firm can improve its performance in product innovation. The study further recommends future research to focus on a broader range of technology industries and target different cultural contexts, countries or geographical areas to validate the results for a full spectrum of culture and geographies. This study will seek to fill these research gaps.

2.4 Conceptual Framework

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Independent variables Dependent variables

Independent v

Figure 2.1: Conceptual Framework Source: Author (2018)

Knowledge Acquisition

 Collecting feedback

 Knowledge repository

 Brainstorming

 Involvement in development/design Knowledge Conversion

 Socialization

 Internalization

 Externalization

 Combination

Knowledge Protection

 Adequate policies

 Strong firewalls

 Knowledge protection maps

 Employee awareness

Organizational Performance

 Gross profit

 Growth of market share

 Customer feedback

 Employee turnover rate



Knowledge Application

 New services

 Expert judgments

 Strict adherence to rules

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CHAPTER THREE

RESEARCH METHODOLOGY 3.1 Introduction

This chapter presents the research design to be used in the study, the target population of the study, sample design, data collection procedure, as well as the data analysis procedure.

3.2 Research Design

This study adopted a descriptive research design to establish the effect of knowledge management on organizational performance in microfinance institutions in Kenya. According to Riff, Lacy, and Fico (2013), a descriptive design is concerned with finding out who, what, where and how of the variables, which was the concern of this research. Further, Yin (2013) emphasized that a descriptive analysis is concerned with specific predictions, with the narration of facts and characteristics concerning individual, group or situation. In this study, the effect of Knowledge Management on organizational performance was the situation under investigation. The design was favored since it is precisely intended to guarantee the final depiction of the circumstance, ensuring that there is least inclination in the accumulation of information and to minimize errors in translating the information gathered.

3.3 Target Population

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Table 3.1: Target Population

Category Target Population (N)

Senior managers 9

Middle-level managers 26

General staff members 76

Total 111

Source: Author (2018)

3.4 Sample and Sampling Technique

Sampling design makes it possible for the researcher to draw generalization and inference by including a limited portion of the population and making careful observations of the variables in play (Kombo& Tromp, 2006). The sample size was computed using Cooper and Schindler’s formula provided below, where N was the size of the population, n was the sample size, and e was the error at 95% confidence level and 5% level of significance. In this regard, 87 employees from Uwezo Microfinance Bank constituted the sample population from a target population of 111 employees.

Formula:

𝑛 = 𝑁

(1 + 𝑁(𝑒)2

= 111

(1 + 111(0.05)2 = 87

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Table 3.2: Sampling Matrix

Category Target population Sample size

Senior managers 9 6

Middle-level managers 26 18

General staff members 76 63

Total 111 87

3.5 Data collection instrument and procedure

The main data collection instrument in this study was a semi-structured questionnaire that contained both closed-ended and open-ended questions. The questionnaire was split into five sections; section A to Section F. Section A was used to elicit the general information of the respondents, section B was to elicit information regarding organizational performance, section C was to capture information regarding the first variable in the study, section D; the second variable in the study, section E; the third variable in the study and section F; the fourth variable in the study. The researcher personally delivered the questionnaires to the respondents, and where it was not possible, the questionnaire was emailed to the respondents. In this case, 87 questionnaires were issued. The respondents were given substantial time (at least one week) to complete filling in the questionnaires before the researcher retrieved them back from the respondents.

3.6 Reliability and Validity of Data Collection Instrument 3.6.1 Reliability of Research Instrument

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Table 3.3: Reliability test

Reliability is the extent of measure of how an instrument can provide reliable data. Cronbach’s alpha test is commonly used in testing the reliability of a data collection instrument by obtaining a correlation coefficient between 0 and 1. The higher the coefficient, the more reliable is the test. According to Gugiu and Gugiu (2017), a standard minimum value of alpha of 0.7 is recommended. In this study, all the alpha values were more than 0.7 as indicated in Table 3.3.

3.6.2 Validity of Research Instrument

Construct Validity was used by the researcher to ensure that the measure was measuring what it was intended to measure, and the other variables in the study. The researcher therefore subjected the questionnaire to a panel of university lecturers in the Department of Human Resource Management, Kenyatta University. In this case, 5 out of 6 panelists supported the construct. According to Csikszentmihalyi and Larson (2014), if the content under scrutiny receives support from at least three members of the panel, then it is assumed that the content of the study is significant.

3.7 Data Analysis and presentation

Quantitative data obtained from the questionnaires was first put into a meaningful format and cleaned to ensure that that data is reliable for analysis and then analyzed using descriptive statistics such as mean and standard deviation. Tables, frequencies,

Variable Cronbach’s Alpha No. of items

Knowledge Acquisition 0.860 4

Knowledge Conversion 0.739 4

Knowledge Application 0.889 4

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graphs and charts were generated using Statistical Package for Social Sciences (SPSS) version 2.0 to present the findings.

3.7.1 Multiple Regression analysis

The researcher, in this case, adopted a multiple regression model at 5 percent level of significance and 95 percent level of confidence to establish the direction of the association between the independent variables (knowledge obtaining, knowledge conversion, knowledge protection and knowledge application) and the dependent variable (organizational performance).

In this case, the regression equation was expressed as Y = β0 + β1X1+ β2X2 + β3X3 + β4X4 + ε ………. (i)

Where:

Y= Organizational performance β0 = coefficient of intercept

X1= Knowledge obtaining X2 = Knowledge conversion

X3= Knowledge protection X4= Knowledge application ε =error term

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3.8 Ethical Consideration

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CHAPTER FOUR

DATA ANALYSIS, PRESENTATION, AND DISCUSSION

4.1 Introduction

This chapter presents the results of the data analysis. First, the description of the basic information derived from the analysis is undertaken for each variable through the descriptive statistics. In the later section the results are derived by the correlation analysis.

4.1.1 Response Rate

The study had targeted 87 respondents working at Uwezo Micro-finance bank. Consequently, these were the number of questionnares distributed. Out of the 87 questionnaires, there were 62 questionnares which were further analysed. Table 4.1 below, presents the response rate which was 71% of the target population.The response rate was ecxellent and representative and coincide with Mugenda and Mugenda (2010) stipulation that a response rate of 50% is adequate for analysis and reporting; a rate of 60% is good and a response rate of 70% and over is excellent.

Table 4.1: Response Rate

Category of respondents Frequency Percentage (%)

Valid Response 62 71%

No Response 25 29%

Total 87 100%

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4.1.2 Demographic Information 4.1.2.1 Age of the Respondent

The age was obtained during the study and Table 4.2 gives a summary of the findings. Table 4.2: Age of the Respondent

Age Bracket Frequency (f) Percentage (%)

19– 30 32 52

31 – 40 19 31

41–50 8 13

Over 50 years 3 5

Total 62 100%

From data analysis results in Table 4.2, 52% respondents were between the ages of 19 to 30 years, 31% were between the ages of 31 to 40 years, 13% were between the ages of 41 to 50 years while 5% were over 50 years. In this regard, the majority of the respondents 83% were below 40 years. This is an implication that most of the microfinance institutions in Kenya are run by the youths; the most appropriate team to target in this research since knowledge management is more inclined to technology and technological growth in an organization and youth are believed to be quite knowledgeable on matters technology.

4.1.2.2 Duration of Employment

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Table 4.3: Duration of Employment

Period in Years Frequency (f) Percentage (%)

0-5 years 16 26%

6-10 years 34 55%

11-15 years 12 19%

16 years and above 0 0%

Total 62 100%

From the data analysis results in Table 4.3, 26% of the respondents stated that they had worked in the organization for between 0 to 5 years, 55% between 6 to 10 years, and 19% between 11 to 15 years. In this case, the majority of the respondents 74% had worked in the organization for more than 6 years. This is an implication that the majority of the respondents in the study had adequate knowledge pertaining to knowledge management practices practiced in the organization.

4.1.2.3 Job Title

Table 4.4 gives a summary of the study findings. Table 4.4: Job Title

Job Title Frequency (f) Percentage (%)

Operation level manager 16 26%

Middle-level manager 10 16%

Top-Level Manager 4 6%

General staff member 32 52%

Total 62 100%

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the respondents were general staff members while the minority, 48% were managers in the organization. This was an implication that the respondents in the study constituted of persons with professional and technical know-how on the area of knowledge management in the organization.

4.1.2.4 Highest Level of Education

Information obtained was summarized as shown in table 4.5 below.

Table 4.5: Level of Education

Level Frequency (f) Percentage (%)

Certificate 5 8%

Diploma 17 27%

Undergraduate degree 23 37%

Master’s degree 13 21%

Ph.D. and above 4 6%

Total 62 100%

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4.2 Descriptive Statistics

4.2.1 Knowledge Acquisition Practices

The study sought to assess knowledge acquisition practices in the sampled microfinance institution and the following statistics were obtained as shown in table 4.6, 4.7 and 4.8.

Table 4.6: Knowledge Acquisition Practices

Method Frequency (f) Percentage (%)

Collecting feedback 55 89

Knowledge repository 52 84

Brainstorming 48 77

Involvement in Development/Design 51 52

From the analysis results in Table 4.6, majority of the respondents 55 (89%) indicated that it was through collection of customer feedback, 52 (84%) chose knowledge repository, 48 (77%) indicated brainstorming while 51 (82%) indicated involvement in development or design. According to the findings of this study, it was observed that all microfinance institutions used feedback collection method to acquire information. The acquired information was then stored in knowledge repositories for future reference. Brainstorming was also noted as a method of knowledge acquisition as well as involvement in the development and/or design.

4.2.1.1 Opinion on Knowledge Acquisition

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Table 4.7: Opinion on Knowledge Acquisition

Items Mean SD

Feedback is collected from customers 4.21 0.23 Databases of good practices are updated regularly 3.91 0.14 I consult my colleagues when undertaking my duties 4.10 0.19 Employees are involved in development/design 4.36 0.22

Average 4.145 0.195

According to the study findings, it was observed that majority of the respondents in this study were of the opinion “Feedback is collected from customers” with a mean of 4.21 (SD=0.23). A good number cited “Databases of good practices are updated regularly” with a mean of 3.91 (SD=0.14). While consulting from colleagues when undertaking duties were cited with a mean of 4.10 (SD=0.19) and employees are involved in development and design with a mean of 4.36 (SD=0.22).

4.2.1.2 Impact of Knowledge Acquisition on Organization Performance

The study further sought to find out the impact of knowledge acquisition on organizational performance. Table 4.8 gives a summary of the findings obtained during the field study.

Table 4.8: Impact of Knowledge Acquisition of Organization Performance

Increased gross profit 4.55 0.645

The growth of market share 4.71 0.460

Reduced customer complaints 4.63 0.489

Low employee turnover rate 4.39 0.638

Average 4.57 0.558

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The first objective of the study sought to examine the effect of knowledge acquisition on the performance of microfinance institutions. Results in Table 4.8 shows the responses on the effect of knowledge acquisition on performance of microfinance institutions, “Increased gross profit” was cited as one of the impacts of knowledge acquisition with a mean of 4.55 (SD=0.645), Growth of market share was cited with a mean of 4.71 (SD=0.460), while Reduced customer complaints was cited with a mean of 4.63 (SD=0.489) and Low employee turnover rate with a mean of 4.39 (SD=0.638).

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distribution of information thus improving the company’s performance. Data was collected amongst organizations with the highest turnover in Spain. Stratified sampling and correlation analysis were applied in analyzing the data. The study finding depicted that there is a positive relationship between flexibility of distribution of information and business performance.

4.2.2 Knowledge Conversion Practices

The study sought to assess knowledge conversion practices in the sampled microfinance institution and the following statistics were obtained as shown in table 4.9, 4.10, and 4.11.

4.2.2.1 Knowledge Sharing Practices

To determine the effect of knowledge management practices on the performance of microfinance institutions, information regarding knowledge sharing methods was sought and the following statistics were obtained as shown in table 4.9.

Table 4.9: Knowledge Sharing Methods

Socialization (such as Observation) 62 100 Internalization (such as Learning by

doing)

56 90

Externalization (such as Documentation) 54 87

Combination (such as Databases) 60 97

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4.2.2.2 Opinion on Knowledge Sharing Practices

To determine the effect of knowledge conversion on organizational performance, the learning process was examined by items in the questionnaire and the following statistics were obtained as summarized in table 4.10.

Table 4.10: Opinion on Knowledge Conversion

I usually learn through observation 4.77 0.46 Employees are rotated in various functions 4.86 0.393 I learn new ideas from documents and manuals 4.81 0.431 Members of staff get new knowledge fromdatabases 4.89 0.321

Average 4.83 0.401

The study findings revealed that employees in the sampled organization learned through observation as cited with a mean of 4.77 (SD=0.46), they also learned through rotation in various functions within the organization as cited with a mean of 4.86 (SD=0.393). The sampled respondents also cited that they learned new ideas from documents and manuals with a mean of 4.81 (SD=0.431) while members of staff get new knowledge from the database was cited with a mean of 4.89 (SD=0.321).

4.2.2.3 Impacts of Knowledge Conversion Practices

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Table 4.11: Impact of Knowledge Conversion

Average 4.63 0.52075

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4.2.3 Knowledge Protection Policies/Strategies

The respondents were further asked to state if the organization they worked for had knowledge protection policies/ strategies. In this regard, 40 (65%) of the respondents indicated that the organization they worked for had knowledge protection policies/strategies in place while 22 (35%) indicated that there were no policies/ strategies to protect knowledge. This information was recorded in Table 4.12.

Table 4.12: Presence of Knowledge Protection Policies/Strategies

Frequency Percentage

Yes 40 65%

No 22 35%

Total 62 100%

Source: Research Data (2018)

The respondents who indicated that they were aware of the knowledge protection policies were further asked to indicate the kind of the knowledge protection policies in place. From the analysis results in Table 4.13, all the respondents (100%) agreed that there were adequate policies in the organization to protect knowledge. Further, a majority 35 (88%) indicated that the organization had strong firewalls. On the same, a majority 32 (80%) indicated that there were knowledge protection maps while a majority 36 (90%) indicated that there was high employee awareness on knowledge protection.

Table 4.13: Knowledge Protection Policies/Strategies

Frequency Percentage

Adequate policies 40 100%

Strong firewalls 35 88%

Knowledge protection maps 32 80%

Employee awareness 36 90%

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From the study findings, it was observed that the sampled microfinance institution practiced knowledge protection with adequate policies, Strong firewalls, Knowledge protection maps, and Employee awareness being the most commonly applied knowledge protection methods.

4.2.3.1Policies of Knowledge Protection

Knowledge protection policies were analyzed and the following were the findings as summarized in table 4.14.

Table 4.14: Policies for Knowledge Protection

The organization have adequate policies to protect knowledge 4.45 0.645 Knowledge is protected by strong firewalls 4.42 0.683 The organization has knowledge protection maps 3.95 0.655 There is employee awareness of knowledge protection

4.25 0.686

Average 4.27 0.667

The study findings revealed that, The organization have adequate policies to protect knowledge as cited with a mean of 4.45 (SD=0.645), Knowledge is protected by strong firewalls as cited with a mean of 4.42 (SD=0.683), The organization has knowledge protection maps as cited with a mean of 3.95 (SD=0.655), and There is employee awareness of knowledge protection with a mean of 4.25 (SD=0.686).

4.2.3.2 Impact of Knowledge Protection Practices on Organizational Performance

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Table 4.15: Impact of Knowledge Protection on Organizational Performance

Average 4.33 0.694

The findings revealed that knowledge protection had a significant impact on the performance of microfinance institutions since it leads to Increased gross profit as cited with a mean of 4.29 (SD=0.694), Growth of market share as cited with a mean of 4.16 (SD=0.754), Reduced customer complaints as cited with a mean of 4.45 (SD=0.645), Low employee turnover rate as cited with a mean of 4.42 (SD=0.683).

These study findings are in line with an argument put across by Omotayo (2015) that knowledge protection can prompt items and administrations that are hard to duplicate so contender can't see how to create same items and departments which will keep up the upper hand and enhanced performance of the organization. According to Hislop (2013), security of information resource is a fundamental errand in the association's learning administration usage. Security is dependably the essential worry in any association's administration data frameworks yet when all around tended to, it turns into the venturing stone for its organizational performance. Further, Ngahu (2017) noted that knowledge protection enabled organizations to have a competitive advantage over its rivals as something that was hard to imitate.

4.2.4 Knowledge Application Practices

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Table 4.16: Knowledge Application

New services 62 100

Expert judgments 60 97

Strict adherence to rules 62 100

Knowledge accessibility to employees 62 100

From the analysis results in Table 4.16, All respondents 62 (100%) indicated that new services were available in the organization. Further, a majority 60 (97%) indicated that expert judgment was applied in the organization. Also, all respondents 62 (100%) indicated that there was strict adherence to rules and regulations of the company. Similarly, all the respondents 62 (100%) agreed that there was knowledge accessibility to employees.

4.2.4.1 Use of the Newly Acquired Knowledge

To determine the effective application of acquired knowledge the study sought to determine the use of the newly acquired knowledge and the findings are summarized as shown in table 4.17.

Table 4.17: Use of Newly Acquired Knowledge

New Knowledge is used in new services 4.71 0.46 The organization utilizes experts judgment 4.82 0.393 Employees adhere to rule in the organization 4.76 0.431 Knowledge is accessible to employees in the organization _4.82 _0.321

Average 4.778 0.401

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(SD=0.431), and Knowledge is accessible to employees in the organization with a mean of 4.82 (SD=0.321).

4.2.4.2 Effects of Knowledge Application on Organizational Performance

The effect of knowledge application was examined and the findings were a summarized in table 4.18.

Table 4.18: Impact of Knowledge Application on Organization Performance

Average 4.59 0.519

According to the statistics obtained from the study it was observed that knowledge application affected organizational performance through; Increased gross profit as cited with a mean of 4.63 (SD=0.489), Growth of market share as cited with a mean of 4.71 (SD=0.460), Reduced customer complaints as cited with a mean of 4.63 (SD=0.489), and Low employee turnover rate as cited with a mean of 4.39 (SD=0.638).

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The results of the study were in agreement with Zhang, Zhao, Lyles and Guo (2015) who investigated the effects of manufacturers absorptive into its mass customization capability. The variables were categorized into knowledge acquisition from customers, knowledge acquisition from suppliers, knowledge assimilation and knowledge application. The study hypothesizes that knowledge acquisition has indirect effects on mass customization capability through knowledge assimilation and knowledge application.

4.3 Inferential Statistics 4.3.1 Bivariate Correlations

The Pearson product-moment correlation coefficient (or Pearson correlation coefficient) is a measure of the strength of a linear association between two variables and is denoted by r. The Pearson correlation coefficient, r, can take a range of values from +1 to -1. A value of 0 indicates that there is no association between the two variables. A value greater than 0 indicates a positive association, that is, as the value of one variable increases so does the value of the other variable. A value less than 0 indicates a negative association.

Table 4.19: Bivariate Correlation Matrix

P erfo rm an c e o f m icro fin an

ce instit

u ti o n s Kn o wle d g e ac q u isit io n Kn o wle d g e co n v ersio n Kn o wle d g e p ro tec ti o n Kn o wle d g e ap p li ca ti o n Performance of microfinance institutions

Pearson Correlation 1 Sig. (2-tailed)

Knowledge acquisition

Pearson Correlation 0.842 1 Sig. (2-tailed) 0.001 Knowledge

conversion

Pearson Correlation 0.746 0.960 1 Sig. (2-tailed) 0.000 0.000 Knowledge

protection

Pearson Correlation 0.905 0.923 0.950 1 Sig. (2-tailed) 0.000 0.000 0.000 Knowledge

application