Knowledge management and competitive advantage: The interaction effect of market orientation

This paper examines the relationship between knowledge management and competitive advantage, in a developing country, Uganda; with a particular focus on the interacting influence of market orientation. A sample size of 718 organizations was selected from a population of 11,153 organizations using a simple random sampling method. Primary data were collected through a self-administered questionnaire. Descriptive and inferential statistics were used in the analysis. The findings show that there is a positive correlation between knowledge management and competitive advantage; which relationship is greatly enhanced by the interaction impact of market orientation. When market-based knowledge is appropriately responded to, it augments the competitiveness of the organization. In addition, this is an indication that competitive advantage is best achieved through a combination of knowledge-based resources. Based on the results, a number of managerial implications were identified such as: creating a balance between knowledge management and market orientation. Among the advanced recommendations is the need for the development of proactive market-oriented organization.