Relationship between Intellectual Capital and Employee Performance as Moderated by Knowledge Management Infrastructure in Kenya

Abstract

The research purpose was to establish the influence of intellectual capital on employee performance using post-positivism philosophy, mixed methods approach and case study design with random sampling technique, giving a sample of 390 employees of the Kenya Bureau of Standards. Data analysis involved descriptive statistics and inferential statistics using SPSS version 24. Findings showed a positive correlation, with knowledge management infrastructure - the moderating variable improving the R-Square value by 6.6 per cent. Regression analysis demonstrated a positive coefficient for the interaction term at 0.019, suggesting an improved impact of intellectual capital factors on employee performance, with a p-value (0.001) indicating the interaction was statistically significant, confirming that knowledge management infrastructure moderated the relationship between intellectual capital and employee performance. In conclusion, the effect of intellectual capital on employee performance is stronger when the knowledge management infrastructure framework is appropriately designed and effectively implemented. The study recommended that heads of marketing and ICT ensure integration and comprehensive handling of customer concerns, while heads of ICT and human resources ensure availability of: documented processes and communication to all employees; adequate information systems, databases and repositories with seamless frameworks for quality standards and routine practices. Comprehensive remedial measures on these human, structural and relational capital concerns would enhance policy directions that facilitate the entrenchment of knowledge management in the organisation and promote prudent utilisation of resources for improved employee performance.