The Impact Of Knowledge Management On Organizational Performance: The Case Of Ethiopian Insurance Corporation
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Date
2016-10-09
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Addis Ababa University
Abstract
To cope with today’s rapidly changing and competitive business environment knowledge
management is viewed as key strategic tool by business organization. Effective management of both
individual and organizational knowledge with in the work place has become important to business
organization for their success.
The main purpose of this study was to identify the impact of knowledge management on
organization performance in insurance organization, specifically in Ethiopian Insurance Corporation
(EIC).
A survey questionnaire was used to collect data. A total of 186 questionnaires were distributed and
172 were returned. From the returned questionnaires three were discarded during screening phase,
SMARTPLS version 3 and SPSS version 20 were used for data analysis and reporting. The
measurement model satisfied the required level of reliability and validity matrices. The assessment
made on the structural model reveals the R-squared (R2) value of 0.652 .This value considered to be
substantial. On the other hand Q-squared (Q2) were 0.364 indicate that the structural model has good
predicative relevance for organizational performance.
The result of the study shows that elements of knowledge enabler capability and knowledge process
capability have positive impact on knowledge management capability. Knowledge process capability
strongly related to KMP than knowledge enabler capability in this study .Organizational structure
has strong positive relationship to knowledge enabler capability than the other elements. Knowledge
application strongly influences knowledge process capability when compared to the four observable
construct. The hypotheses test result shows that all the proposed hypotheses were statistically
significant and supported on this research.
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Management On Organizational Performance: The Case Of Ethiopian Insurance Corporation