Tracing Superior Non-Financial Performance to Knowledge Creation: An Empirical Study of Family Firms

Abstract

Drawing on socialization, externalization, combination, and internalization model, an inquiry is affected to establish the association between family firms' creation of knowledge and its effect on non-financial performance. Based on knowledge-based view, it is hypothesized that knowledge creation in firms has no significant effect on non-financial performance. A test of the hypotheses is executed with data collected from 75family firms based in Migori County, Kenya. Findings suggest that knowledge creation in firms contributes to superior levels of non-financial performance.