Knowledge Management among Savings and Credit Cooperatives (SACCOS) in Nairobi City County, Kenya

Abstract

Rationale of Study – Savings and Credit Cooperative (SACCO) movement in Kenya plays a critical role in national development by eradicating poverty amongst citizens. However, the SACCO sector faces numerous challenges which include weak and non-standard processes, shifting markets, rapid product obsolescence, hyper competition and financial upheavals. The aim of this study was to explore the potential of knowledge management as a strategy for achieving competitive advantage among SACCOs in Nairobi City County in Kenya.
Methodology – The study was informed by ‘Knowledge-based theory of the firm’ published by Carla Curado in 1959. The theory states that knowledge is the most strategically-significant resource in a firm. Qualitative method was employed in gathering data from three purposively selected SACCOs in Nairobi City County. Purposive sampling was further used to select heads of key departments, records officers, and ICT personnel as respondents in the study. Data was collected through unstructured interviews. The data was analysed thematically.
Findings – The study revealed that SACCOs lack structured approaches to manage knowledge. The study concludes that the haphazard knowledge management practices cannot be equated to good knowledge management practices and cannot give SACCOs a competitive advantage. The study also revealed that negative personality traits, unhealthy competition, and lack of mutual trust amongst staff hindered effective knowledge management. It also emerged that operational factors like lack of resources, lack of top management support, and demanding work schedules also affected the ability of staff to share knowledge.
Implications – The findings of this study may benefit SACCOs seeking to understand and manage their unique knowledge to remain competitive.
Originality – This is an original and empirical study on a subject which is less explored especially in Kenya.