Abstract:
A firm is more likely to achieve superior performance if its competitive edge is distinct
and unparalleled. Thus, the study sought to examine the mediating effect of technological
innovation on the relationship between knowledge management and competitive advantage
of telecommunication firms in Kenya. The study was informed by the Michael Porter’s
framework and knowledge-based view theories. The explanatory research design was
utilized in the study. The study targeted employees from the top and middle level
management of Safaricom, Airtel Kenya and Telkom Kenya. According to HR records
by end of 2020 there were 602 employees from the top management and 2385
employees from the middle management from the three telecommunication firms. The
sample size was 353 obtained using Yamane formula. The researcher used stratified
random sampling technique to get the sample size from each firm. Questionnaires were
used as the research instruments. The pilot study was conducted to examine the validity
and reliability of research instruments. The study was analyzed using descriptive and
inferential statistics. The study used descriptive and inferential statistics. The results
found a significant correlation between knowledge management practices and the
competitive advantage of telecommunication firms in Kenya. Specifically, the study
found that knowledge creation (r=0.757, p<0.0001), knowledge transfer (r=0.704,
p<0.0001), knowledge storage (r=0.717, p<0.0001), knowledge implementation
(r=0.763, p<0.0001), and technological innovation (r=0.757, p<0.0001) were all
positively associated with competitive advantage. In addition, the study found that
knowledge management indirectly influence a firm’s competitive advantage through its
effect on technological innovation. The study concluded that telecommunication firms
should invest more in learning processes to enhance innovativeness. They should also
be ready to adopt innovations in knowledge management in areas such as acquiring,
sharing, storing, and applying knowledge. This can be done through the employment
of competent officials as well as sufficient funding for innovations.
