Article Knowledge management strategy and innovation performance of manufacturing firms of Uganda

Resumo

To thrive, many businesses, especially those based in developing countries, rely heavily on their ability to innovate. However, improving on the innovation performance is challenging for many manufacturing firms. This study therefore investigated the effect of knowledge management strategy on innovation performance. The study was guided by resource-based view theory. A cross-sectional explanatory survey design was applied to examine the nature of reality. Data was collected from a sample of 263, picked from a total of 3894 manufacturing firms by use of simple random sampling and purposive sampling techniques. Further, a self-administered questionnaire was the only tool used for data collection. The collected data were analysed and hypotheses tested using hierarchical and multiple regression models. The findings shed light on several crucial aspects of knowledge management strategy that influence innovation performance. Specifically, codification strategy and personalisation strategy were found to have a substantial impact on innovation performance, particularly in the context of the manufacturing sector. The study only covered knowledge management strategy among manufacturing firms, even though it is also popular in organisations, especially the service sector organisations. Thus, the findings are not generalisable to all other firms. Further, the study employed a cross-sectional quantitative research design, yet innovation performance fluctuates over time and depends on the environment that one is facing at that particular time. Finally, the study was limited to only one predictor of innovation performance: knowledge management strategy despite the existence of several other predictors. Results suggest that effective knowledge management strategies implemented at the firm level are likely to improve the level of innovativeness of manufacturing firms. Given the positive and significant influence of both knowledge codification and knowledge personalisation strategies on innovation performance, it is recommended that manufacturing firms adopt a balanced knowledge management approach that integrates both strategies. Specifically, firms should invest in robust knowledge codification systems—such as databases, standard operating procedures, and digital knowledge repositories—to ensure that critical organisational knowledge is captured, stored, and easily accessible for reuse and continuous improvement. At the same time, organisations should actively promote knowledge personalisation through initiatives that facilitate direct interaction among employees, including teamwork, mentorship programs, communities of practice, and cross-functional collaboration. This will enhance the sharing of tacit knowledge, which is essential for creativity and the development of novel solutions. Furthermore, management should align knowledge management strategies with organisational innovation goals by fostering a supportive culture, investing in enabling technologies, and providing continuous training to employees. This dual emphasis will enable firms to leverage both explicit and tacit knowledge effectively, thereby sustaining and enhancing innovation performance.