Impact of Knowledge Application and Knowledge Conversion on Organizational Performance: An Empirical Analysis

This work examines the effect of knowledge application and knowledge conversion on organizational performance among manufacturing firms in Ibadan Oyo State. The research design adopted is the survey research design. Stratified random sampling technique was used. The sample size of two hundred respondents was selected from six manufacturing firms in Ibadan that served as the population of this study. Of the two hundred (200) questionnaire administered to the respondents, one hundred and ninety-two (192) copies were successfully completed and retrieved for the analysis. Both descriptive and inferential statistics was used for the analysis. Results of the finding show that knowledge application has a significant positively relationship with four sub- variables of organizational performance namely, revenue (r = .492**, p = .000), financial strength (r = .538**, p = .000), public image (r = .543**, p = .000) and goodwill (r = .463**, p = .000). Knowledge conversion is also positively related to the four sub-variables of organizational performance namely, revenue (r = .442**, p = .000), financial strength (r = .537**, p = .000), public image (r = .478**, p = .000) and goodwill (r = .443**, p = .000). The study concluded that the knowledge management has a significantly effect on organizational performance. It was recommended that organizations should redefine ways to promote knowledge conversion in order to maximize human potential in the workplace. Also, organization needs to combine the technology infrastructure, processes, incentives and culture in order to motivate employees to integrate and use knowledge management, in order to keep up with ever-changing business environment, and to ensure organizational success in addressing unforeseen challenges.