Effect of Knowledge Application on the Competitive Advantage: A Case Study of Nairobi City Water and Sewerage Company

Knowledge is increasingly being recognized to be of importance in an organization's corporate strategy. An Organization that shares knowledge among its management and staff grows stronger and becomes more competitive. Previous studies conducted in the area of knowledge application are not conclusive and this has led to a limited understanding of the extent of its effect on an organization's competitive advantage. Despite organizations? having implemented knowledge application, there is inconsistent data to support how it affects firm's competitive advantage. The purpose of this study was to investigate the effect of knowledge application on the competitive advantage at Nairobi City Water and Sewerage Company (NCWSC). In addition, the effect of innovation, decision making, improved customer service, and improved operational processes on competitive advantage in NCWSC was investigated. A case study research design was adopted with a target population of 333 management staff from different departments in NCWSC. Data collection was done using questionnaires and data analysis and interpretation done using qualitative and quantitative methods. The study revealed that Knowledge application on the competitive advantage is a very important aspect on the performance of the organization. Organizations should utilize knowledge to create customer focus strategies, cost leadership strategies, improve revenues, create competitive advantage, enhance innovations, employee growth, and development, faster and better decision-making, faster response to key business issues, improve quality and service delivery. From the study it can be deduced that to have a sustainable competitive advantage, an organization should provide its employees with the platform for applying knowledge in their working environment. The study recommended that organizations should therefore encourage experts to take a very active role in the creation of a knowledge base towards attainment of the organizational goals.