Orientation of Knowledge Management strategies and their impact on Organizational Performance: Case of Micro Finance Institutions

Abstract

It is common to refer to the SMEs as vital seeds for the breaking of the economic cycle of a country due to the ability of the business entities to create employment. Still, there have been reported failures; this is even when there has been a pervious investment of large amounts of resources in the sector over the last decade. In executing this endeavor, this paper seeks to examine the effects of KMS on the performance of SME financial institutions utilizing Resource Based View (RBV) theory of the enterprise, Organization Learning (OL), and Knowledge Based View (KBV) theories. According to the research carried out, it was realized that SMEs have managed to improve knowledge management through improvement in capacity development, availability of mentorship programs, enhanced application of modern technology, and consultations. Based on the study, it is suggested that SMEs should provide coverage to the training and enhance their training capacity using micro-finance services from Micro Finance Institutions and the other participants in the financial sector. The findings of this thesis can help SME owners in making appropriate business decisions, provided with the knowledge in this thesis, and would be useful to academicians, researchers, and readers willing to acquire knowledge.