Knowledge Management and its Effect on Firms’ Competitive Strategy and Efficiency in the Service Sectors of the Nigeria Economy

Abstract

There is an amplified interest in an organisation’s competitive strategy and efficiency in performing its functions. Knowledge management (KM) thus, serves as a means of improving an organisation’s efficiency. However, it has become increasingly apparent that a lack of knowledge management and resilience in a dynamic and unpredictable corporate environment is a severe business concern that reduces competitive advantage and a firm’s performance. This research, therefore, explored knowledge management and its effect on firms’ competitive strategy and efficiency in the service sectors of the Nigerian economy to bridge this gap. We used an exploratory study technique, administering a self-designed questionnaire to 386 employees and managers from chosen service organisations. The questionnaire received 333 valid responses, representing 90.5% of the total. A multiple regression approach is used to analyze the information. The research results supported the hypothesis that KM engenders firms’ competitive strategy and efficiency through robust reward systems. The results also showed that if employees are satisfied and their interests are safeguarded, acquiring knowledge, preservation, distribution, and utilisation would be easier, which leads to long-term organisational profitability and performance. Organisations should thus link knowledge management with employee interests and build broad strategies while fostering an atmosphere conducive to KM development and utilisation.