Abstract:
In this study, we examine the relationship between knowledge management
capability and operational agility which is an important antecedent of competitive
advantage in organisations. We first set out to determine the KM and organisational
agility dispositions and then tested the relationship between the two in the Kenya
banking sector using data from 172 respondents from commercial banks. Data was
collected using structured questionnaires that were derived from literature and
tested for validity and reliability prior to their use. We found that the relationship
between knowledge management capability and market capitalizing agility
was weak, negative and not significant at p < 0.05 but at p <0.1 (r = - 0.142,
p<0.063). We also compared the mean scores of the two strategic capabilities
across a set of demographic variables and found significant (p < 0.01) variation
in the two strategic capabilities across age, level education, and working
experience. Further, a negative and significant relationship (p < 0.05) was found
between both strategic capabilities and all the demographic variables. This one
of first attempt to examine the relationship between KM capability (lower order
capability) and market sensing agility (higher order capability) in a developing
economy context. The findings imply that KM capability has not reached the
threshold to positively influence the market capitalizing agility which is necessary
for superior performance and that there are demographic characteristics that
impact both knowledge management capability and market capitalizing agility. It is
recommended that a further examination of KM capability and market capitalizing
agility be conducted to determine what aspects lead to negative relationship
between these two capabilities and between them and age, education and work
experience.
