The mediating effect of knowledge management on talent management and firm performance in small and medium enterprise in Uganda

Abstract

PurposeThis study examines the mediating effect of an effective knowledge management (KM) in the relationship between talent management (TM) and organizational performance. This study was operationalized among the small and medium enterprises (SMEs).Design/methodology/approachA cross-sectional survey design was used to collect data from a sample of 260 SMEs business. The data collected was analyzed using correlations and hierarchical regression to test the mediating effect of KM on the relationship between TM and firm performance.FindingsThe findings show that KM mediates the relationship between TM and firm performance. They also suggest that TM contribute to enhancing performance through improvements in KM.Research limitationsThe sample used in the research is not representative of all the SMEs operating in Uganda. This limitation presents the challenge of generalising and we therefore suggest caution when interpreting the results. We note the challenge of a skewed sample. For instance, most of the respondents to our study were confined to tailoring and design and metal and fabrication sectors. The skewed sample is a notable limitation of the research. The study was limited to Uganda only hence it did not capture information relating to other geographical settings, which may limit the effectiveness of the findings therein.Practical implicationsBased on the findings of the study, the managers of the SME can use the study results to develop strategies and interventions that can enable their firms to improve on their performance even in the harsh economic environment through adopting positive practices such as KM.Originality/valueThis paper contributes by filling a gap in HR management and SMEs literature, in which empirical studies on the relationship between TM and firm performance have been limited until now. This may create better research opportunities for cross-disciplinary papers that should be done by human resource, small business management and KM scholars.

The mediating effect of knowledge management in the relationship between the HPO framework and performance

“…In a recent study by Correia et al (2022) in Portugal established the mediating role of DCs on firm performance. Bagorogoza and Nakasule (2022), in their study on the mediating effect of KM on talent management and firm performance in small and medium enterprise in Uganda, they found out that KM mediates the relationship between talent management and performance. Shujahat et al (2019) in their study on translating the impact of KM processes into Knowledge-based innovation: the neglected and mediating role of knowledge-worker productivity.…”

“…Particularly, the performance of knowledge-intensive business services such as FIs is largely dependent on the successful management of organisational knowledge (Obeidat et al, 2016). In the study by (Bagorogoza and Nakasule, 2022;and Hassana and Raziqb, 2019), they found out that there is a relationship between KM and performance in small and medium enterprises. The relevance of knowledge and its effective and efficient management for organisational performance seems to be a widely accepted issue in most of existing management literature (Andreava and Kianto, 2012;Inkinen, 2015).…”

“…Therefore, there is need for a national KM policy that should encourage FIs to design and operationalise KM policies that guide the KM activities such as knowledge retrieval and use. The KM policy should also consider knowledge as a critical resource for the FIs survival and accordingly provide for an adequate acquisition, protection and retention of knowledge (Bagorogoza and Nakasule, 2022). The managers of FIs will aim at improving their performance to high performance.…”

Does knowledge management mediate the relationship between entrepreneurial orientation and firm performance?

“…For example, customer KM acts as a mediator in the relationship between knowledge-oriented leadership and innovation quality (Chaithanapat et al , 2022). KM can mediate the relationship between TM and organisational performance (Bagorogoza and Nakasule, 2022). KM processes were found to partially mediate the relationship between high performance work systems and intrapreneurial behaviour (Portalanza-Chavarría and Revuelto-Taboada, 2023).…”

Optimization of Organizational Performance through the Development and Management of Human Talent

“…We looked at the challenge of a biased sample. (Bagorogoza, 2022) Organizational Performance and Human Talent Management variables, with a total of 26 publications in the Scopus database. In the same way, it was established that the application of theories framed in the area of Business, Management and Accounting, were used more frequently in the implementation of the development and management of human talent since this part of the organization to improve organizational performance, taking into account this important factor, it is necessary to have a much more critical and dynamic thinking since the bases of these contribute to the success of the organization.…”