Relationship between Intellectual Capital and Employee Performance as Moderated by Knowledge Management Infrastructure in Kenya

Aim: This study sought to establish influence of intellectual capital on employee performance under the moderating effects of knowledge management infrastructure in Kenya. Methods: The study adopted post-positivism philosophy, mixed methods approach and adopted case study design with random sampling technique. A sample of 390 respondents was obtained, using Yamane (1974) formula from a target population of 2050 employees of the Kenya Bureau of Standards, a public regulatory agency under the Ministry of Investment, Trade and Industry. A pilot study was conducted covering 40 respondents, who were later excluded from main sampling. The study obtained primary data using a 5-point Likert scale questionnaire, administered through drop-and-pick later technique. Data was exposed to analysis by descriptive statistics in percentages, mean and standard deviation as well as inferential statistics in correlation and regression using SPSS version 24. Results: Knowledge management infrastructure - the moderating variable in the model improved R-Square value from 0.295 to 0.361 indicating that the model’s explanatory power improved by 6.6%. Further, the MMR analysis found positive coefficient for the interaction term at 0.019, suggesting that as knowledge management infrastructure improve, the impact of intellectual capital factors on employee performance similarly improve; and the p-value (0.001) indicated the interaction was statistically significant, confirming that knowledge management infrastructure moderated the relationship between intellectual capital and employee performance. Conclusion: Knowledge management infrastructure enhanced the relationship between intellectual capital and employee performance, evidenced by 6.6% improvement on explanatory power of correlation. The positive regression coefficient of interaction confirmed that effective knowledge management infrastructure positively impacted on intellectual capital relationship with employee performance. Thus, the effect of knowledge intellectual capital on employee performance is stronger when knowledge management infrastructure framework is appropriately designed and effectively implemented. Recommendation: Marketing and ICT heads should address the poor integration of customer concerns under relational capital to prevent negative ripple effects. ICT and HR heads must ensure employees have access to well-documented processes, reliable knowledge systems, and consistent quality frameworks under structural capital. Since intellectual capital scored below the industry threshold, HR should act on gaps like limited employee involvement in decisions, low exposure to industry practices, and weak training and development..