Knowledge Management and Competitive Advantage of Listed Consumer Goods Manufacturing Companies in Nigeria

Abstract

The study investigated the effect of knowledge management on the competitive advantage of Nigerian consumer goods businesses. A survey research design was used for the study. The management staff of six major consumer goods firms were included in the study’s population: Flour Mills Nigeria Plc., Cadbury Nigeria Plc., Guinness Nigeria Plc., Nestle Nigeria Plc., Honeywell Flour Mills and PZ Cussons Nigeria from which a sample of 384 was drawn using power analysis. A structured questionnaire was used to collect information from the respondents. The data collected were analyzed using descriptive statistics of frequency counts and simple percentages. In addition, covariance-based structural equation modelling (CB-SEM) was used to achieve the study’s objectives. The findings from the study revealed that knowledge acquisition (β = 0.541; p = 0.001), knowledge sharing (β = 0.672; p = 0.001), knowledge creation (β = 0.774; p = 0.001), knowledge codification (β = 0.450; p = 0.001) and knowledge retention (β = 0.853; p = 0.001) had a significant positive effect on consumer goods company’s competitive advantage. The study concluded that knowledge management played an important role in enhancing competitive advantage when adequately managed. It was recommended that the authorities in charge of the consumer goods companies ensure management staff quickly get any information needed within their working environment and ensure a horizontal information flow. In addition, the management should constantly develop new knowledge and ideas as well as providing appropriate communication and information technology (IT) gadgets to boost competitive advantage.

Knowledge management: Implications to SMEs performance in Nigeria

“…Therefore, it was established that knowledge sharing had statistical relationship with market share of manufacturing SMEs in South Eastern, Nigeria. This result was in line with previous studies (Akpobome, 2021;Bhawiya Roopaa & Gopinath, 2021;Onifade et al, 2022;Shodiya, 2021;Stephen, 2022).…”

“…Jue, Marr, and Kassotakis (2010) suggested that associations can use knowledge to gain competitive advantage and that successful association's use knowledge to improve their products and services. Stephen (2022); Samir (2020); Shodiya (2021); Bhawiya Roopaa and Gopinath (2021); Okoli, Onochie, Ngige, and Okaforocha (2021); Adhikari (2020); Dickson and Isaiah (2019) and Ireri (2013) found that Knowledge sharing improved the competitiveness of the associations by adding customer satisfaction, participation in requests, reduction of operating costs, business performance and also the resignation and operation of new technologies. Based on the above discussions, the following hypothesis was developed: H1: There is no significant association among knowledge sharing and market share for manufacturing SMEs in South-East, Nigeria.…”

“…It is noteworthy that small and medium enterprises are an important sector to bring about additional invention, competition and trade in the country and the government can work hard to create a good and innovative system for development of the country. Shodiya (2021) argued that academics and practitioners consider manufacturing firms as large businesses; as this sector employs 22.5 percent of Nigeria's pool and accounts for 66 percent of total expenditure. In order to influence other companies, a system is required that can gather, participate in, integrate and store this crucial information.…”

“…Knowledge in the institution refers to skillful knowledge, gestures, ideas, positions, beliefs and practices that can be changed and transferred. Information, unlike other cash registers, is sensitive to repetition, which makes information management even more important in companies (Shodiya, 2021). Budihardjo (2017) believed that knowledge management which is a methodical or planned endeavor to enhance organizational capabilities by managing tacit and unambiguous information to accomplish organizational performance.…”

A Review of Knowledge Management Orientation: Revisiting the Paradigm

“…Another critical part of the company's KBV is the requirement for knowledge integration in all organizational processes. The ability to integrate and use knowledge has an impact on the relationship between organizational knowledge and a firm's competitive advantage (Shodiya, 2021). Håkanson, (2010), opine that many of the core assumptions of the knowledge-based view have remained debatable.…”