Knowledge Application, Knowledge Protection And Strategic Performance Of Nigerian Insurance Companies
Osazevbaru Henry Osahon
Delta State University, Abraka
Dr AKPOYIBO Akpobome Gregory
Delta State University, P.M.B.1, Abraka
Dr Osayande Festus
Joint Universities Preliminary Examinations Board (JUPEB), University of Benin, Benin City, Edo State – Nigeria.
Keywords: Environmental performance, competitive advantage, intellectual capital, innovative knowledge
Abstract
In the strategic management literature, knowledge resources have been acknowledged as a tool for gaining competitive advantage by firms when effectively deployed. However, corporate restructuring efforts by most Nigerian firms seem to have downplayed on this fact. While they spend so much on knowledge acquisition, they care less about knowledge application and knowledge protection. This is expected because empirical studies are yet to rigorously test the nexus between knowledge application, knowledge protection and firm performance. This perceived gap is the fulcrum of this paper. Using the insurance sub-sector of the financial services sector as a reference point, primary data were generated by means of questionnaire administered on a sample of 240 employees randomly selected from six listed insurance firms. Ordinary least square framework was applied based on the results of both Variance Inflation Factor test and Ramsey Reset test that confirmed the suitability of linear regression. The simple equation model revealed a positive and statistically significant relationship at the 5% and 1% levels respectively between knowledge application and firm performance, and knowledge protection and firm performance. The result of the multiple model also showed positive influence of the independent variables on the dependent variable. However, only knowledge protection was statistically significant at 1%. The F-value which was significant at 1% showed the fitness of the model. Based on these results, the study concluded that knowledge application and protection have influence on firm’s strategic performance. It is recommended that firms should give due attention to knowledge application and knowledge protection as dimensions of knowledge management.