Effect of Knowledge Management on Organizational Performance: The Case of Private owned Banks in Ethiopian
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Date
2021-06
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A.A.U
Abstract
Knowledge management is frequently identified as an important antecedent of innovation and
has crucial roles in form performances. However, empirical studies specifically aimed at
addressing antecedents and consequences of knowledge management from business score card
perspectives in private banks of Ethiopia is hardily limited. Therefore, the very purpose of this
study was to establish the relationship between knowledge management and organizational
performance of private banks in Ethiopia. The study targeted a population of 873 members (809
employees and 64 division mangers) of two private owned banks (Wegagen and Enat) in
Ethiopia. Simple random sampling was employed to select a sample of 274 members of which 21
respondents were division managers and 253 were employees at head offices. A pilot study was
carried out using 10% of sample size which accounts 28 respondents. The Cronbach’s Alpha
value for all questionnaire components were greater than 0.7 indicating that the research
instrument was reliable. As part of data analysis from descriptive analysis mean and standard
deviation were used to assess knowledge management practices and status of organizational
performances of sampled firm and from inferential statistics person correlation was applied to
see association between knowledge management practices and organizational performances,
whereas, multiple regression was employed to examine how much of the change in
organizational performance is due to the change in knowledge management practices.
Descriptive results affirmed that knowledge management practices and organizational
performances of the sampled firm was moderate which implied that the firms should still
expected to more enhance their knowledge management practices so as to boost their
organizational performance. Besides, multiple regression results showed that knowledge
acquisition with (Beta = 0.222), knowledge sharing with (Beta = 0.204), knowledge storage with
(Beta = 0.156 and knowledge applications (Beta = 0.354) significantly predicted organizational
performances (Customers satisfactions, learning and growth, finance and internal process).The
R value (0.770) is an indication of high correlation between independent and dependent
variable, while, R2 value (0.593) obtained in this study demonstrated that 59.3% of the variation
in organizational performance is due to change in the constructed knowledge management
dimension in this study .Owing this, the study concludes that knowledge acquisition, sharing,
storage and application significantly predicts organizational performances of private owned
banks in Ethiopia, therefore, private banks should give due attention to these knowledge
management practices.
Key terms: knowledge acquisition, knowledge sharing, knowledge storage, knowledge
application, organizational performance.
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Keywords
knowledge Acquisition, knowledge Sharing