Investigating the Effect of Organizational Culture on Knowledge Management Process
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Date
2023-06
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Addis Ababa University
Abstract
Nowadays, knowledge is seen as a crucial competitive advantage. It is not only recognized as the basis for steady development, but it is also the source of an organization's competitive mindset, which is a benefit for the organization. Culture's double position as both a barrier and an empowering part of knowledge management initiatives increases its relevance in efficient management of knowledge management. Effective knowledge management is a cornerstone of every successful organization, particularly one that wants to minimize ambiguity regarding its culture and how it should be represented in the activities of its employees. This study aimed to investigate the effect of organizational culture on knowledge management process in Awash Bank. In this study, the competing value framework and the Newman and Conrad model where utilized. To gather data, a closed-ended questionnaire was used and 142 participants were randomly selected across seven different departments in the bank using a simple random sampling technique. To screen the data, descriptive statistics such as standard deviation, mean, and median was generated using SPSS V.25. The data was analyzed using SmartPLS V.3, which revealed that organizational culture significantly affected knowledge management at Awash Bank. In particular, the study found that clan culture and adhocracy culture had the strongest positive impact on knowledge management, while market culture had no significant impact. Hierarchy culture had a weaker positive impact on knowledge management. These findings suggest that a supportive and collaborative organizational culture that values knowledge creation, retention, transferring, and utilization is crucial for effective knowledge management in Awash Bank. The results of this research have the potential to be extremely valuable to organizations as they prepare to implement knowledge management initiatives. Organizations that understand their organizational culture may plan strategically and make informed judgments about knowledge management. This study also contributes to the existing literature on knowledge management and provides valuable insights for managers and leaders in the banking industry on how to create a culture that supports effective knowledge management practices. The study will also shed light on the unique challenges and opportunities faced by Awash Bank in managing its knowledge resources effectively.
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Keywords
Organizational Culture, Knowledge Management, Competitive Values Framework, Newman and Conrad Model, Organizational Culture Assessment Instrument (OCAI)