Asian Journal of Economics, Business and Accounting

With intensifying rivalry in the mobile telephone industry, mobile telephone firms are finding knowledge management capabilities as vital resource for ensuring their performance. However, there is scanty empirical literature to help these firm associate knowledge management capabilities to their performance, hence this study which sought to ascertain the inspiration of knowledge management capabilities on the performance of mobile telephone firms in Kenya. it objectives were to; establish the influence of knowledge acquisition, find out the influence of knowledge application, determine the role of knowledge transfer, ascertain how knowledge protection influence, and stablish the joint effect of knowledge management capabilities (knowledge acquisition, knowledge application, knowledge transfer and knowledge protection) on the performance of the mobile telephone firms in Kenya. This study adopted descriptive survey design where it used a target population of the 63 heads of human resources, information marketing and finance from the 21 telephone firms operating in Kenya. Since the target population was easily manageable and readily accessible, census was used. The data which was collected data from primary sources using questionnaires was analysed using quantitative approach to produce descriptive and inferential statistics. In addition, the study tested for its hypothesis testing using; t-test,. F test and Analysis of Variance. The study found that each of; knowledge acquisition, knowledge application, knowledge transfer and knowledge protection have a positive significant effect of performance. The study concluded that on embracing knowledge management capabilities; knowledge acquisition; knowledge application; knowledge transfer; and knowledge protection, mobile telephone firms in Kenya experienced significant improved in performance and as they also gained competitive advantage over their competitors.