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Knowledge management is premised on the notion that a firm’s most prized asset is the knowledge of its workforce. The implication, therefore, is that all jobs undertaken by organizations will in one way or another involve knowledge work of sorts. Inevitably therefore, jobs are therefore slowly turning into knowledge work than manual performance of tasks. Yet, despite the tremendous attention knowledge management has gained in firms in the last decade, its strategic effect on family owned Micro Small and Medium Enterprises’ non-financial performance has been largely ignored. The purpose of this study was to establish the effect of strategic knowledge management practices on non-financial performance. Strategic knowledge management practices were characterized by knowledge sharing culture, management of intellectual capital and knowledge creation. Survey research design was used with a target population of 167 registered family owned MSMEs in Migori County and sample size of 118 respondents was arrived at. Simple and stratified random sampling techniques were adopted. Primary data was collected through self-administered questionnaires. Both descriptive and inferential statistics were employed in data analysis. SPSS version 22 was employed for data analysis. Findings revealed that strategic knowledge management practices had a positive and statistically significant effect on non-financial performance of family owned Micro, Small and Medium Enterprises in Migori County, Kenya. The study recommends that the family owned firm management should aspire to create an environment where strategic knowledge management practices are cultivated to enable improved non-financial performance. Policy makers should create a model strategic knowledge management practices framework aimed at improving non-financial performance
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