International Journal of Science and Research (IJSR) ISSN: 2319-7064 ResearchGate Impact Factor (2018): 0.28 | SJIF (2019): 7.583 Volume 9 Issue 6, June 2020 www.ijsr.net Licensed Under Creative Commons Attribution CC BY Influence of Knowledge Management on Competitive Advantage in Medium and Large Garment Companies in Kenya Antony Mulyungi Mwendwa 1 , Dr. Wallace Atambo (PhD) 2 , Mike Iravo (PhD) 3 , Dr. Rukia Atikiya (PhD) 4 1, 2, 4 Jomo Kenyatta University of Agriculture and Technology, P.O. BOX, 62000-00200, Nairobi, Kenya 3 Professor, Jomo Kenyatta University of Agriculture and Technology P.O. BOX, 62000-00200, Nairobi, Kenya Abstract: This study sought to establish the influence of knowledge management on competitive advantage in medium and large garment companies in Kenya. A cross-sectional survey design was adopted using both qualitative and quantitative approaches. From a target population of 170 firms, 83 firms were drawn to form the sample for the study. Data was collected through questionnaires where a response rate of 86.7% was attained. Using linear regression analysis and analysis of variance, Null hypothesis was tested with the results indicating a moderate and positive linear relationship at statistically significance levels R = 0.415, R 2 = 0.172, p value = 0.000. It was therefore concluded that knowledge management is a predictor of competitive advantage in medium and large garment companies in Kenya. In regard to population under this study, the research recommends the adoption of incentives and culture that supports knowledge acquisition and utilization in Kenya’s garment industry. Keywords: Knowledge management, Knowledge‐Based View of the Firm, Competitive advantage 1. Introduction The textile and garment industries were the archetypal drivers of early industrialization in both advanced and less developed countries (Natsuda, Goto,Thoburn, 2010). Currently, the garment sector still remains the main springboard for national development, and often is the typical starter industry for countries engaged in export- oriented industrialization due to its low fixed costs and its emphasis on labor-intensive manufacturing (Gereffi & Frederick, 2010). Globally the garment and textile industries employ 75 million people worldwide and has an estimated worth of $4.4 trillion (Solidarity Centre, 2016). Although the global garment industry has been expanding at a rapid rate since early 1970s and providing employment to tens of millions of workers, the industry has endured regulative and economic challenges. For instance, the Multi- Fiber Arrangement (MFA), which established quotas and preferential tariffs on apparel and textile items imported into the United States, Canada, and other European nations was phased out by the World Trade Organization (WTO) between 1995 and 2005 (Gereffi & Frederick, 2010). Consequently, many poor and small developing economies that relied on apparel exports such as Sri Lanka, Mexico, Turkey and Kenya were pushed out of the global trading system by much larger, low-cost rivals, such as China, India, and Bangladesh (MacCarthy & Jayarathne, 2010). As with other industries around the world, the global economic recession of 2008 had negative ramifications on the garment sector as well; it led to factory shutdowns, sharp increases in unemployment, and social disorder as displaced workers sought new occupations (Gereffi & Frederick, 2010). Equally notable are the impacts of consumer and competitive pressures; information and trends for instance, are moving around the globe at tremendous speeds, presenting consumers with more options. Changes in lifestyle due to sociocultural factors and need for uniqueness is forcing the industry players to renew merchandise constantly in order to deal with the growing competition in the market (Bhardwaj & Fairhurst, 2010). Additionally, complex global supply networks have emerged to flood clothing in world markets. The nature of these global networks poses significant challenges for rival firms such as the need for quick and precise response to customer demands and the need for innovative operational competencies (MacCarthy & Jayarathne, 2010). 1.2 Statement of the Problem Since becoming a sovereign state in 1963, promoting the garment sector has remained a key priority of Kenya’s economic policy (Onyango & Ikiara, 2011). The Kenya’s garment sector is considered by policy makers, stakeholders and researchers as a potential source of job opportunities and a path to economic growth (Rael & Beatrice, 2012). However, since the phasing out of government protectionism and global quota systems in favor of liberalization in 1990s, Kenya’s apparel sector has undergone a sustained decline to 50% of peak period (Fukunishi, 2013; World Bank; 2015; Chemengich, 2013). As the Kenya’s clothing industry currently struggles to stay afloat in the fierce competition of liberalized markets, its counterparts in Asia, Europe and Central America are dominating the global markets and positively contributing to their respective national GDPs (Gereffi & Frederick, 2010). Consequently, adequate knowledge of determinants of competitive advantage can aid Kenya’s garment firms in understandi ng the factors impeding competitiveness, and the factors that can help enhance it. The major challenge in achieving the foregoing is, however, presented by the inadequacy of relevant studies focusing specifically on the Kenyan context; the apparel industries in Kenya and Sub-Saharan Africa have indeed been Paper ID: SR20531175108 DOI: 10.21275/SR20531175108 376