The Effect of Knowledge Sharing practices on Employee Performance: The Case of Bank of Abyssinia
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Date
2024-02
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Addis Ababa University
Abstract
The purpose of this study is to investigate The Effect of Knowledge Sharing practices on Employee Performance: The Case of Bank of Abyssinia at Addis Ababa. To achieve the objectives of this study Cross-sectional research design was used. The study used Survey questionnaire, data was collected through questionnaire from a population of 308 employees and 300 questionnaires were returned. The data collected from the questionnaire were analyzed descriptive statistics to summarize respondents' demographics and variables, followed by inferential statistics including correlation analysis to assess relationships, multiple linear regression to evaluate the influence of knowledge-sharing practices on performance, and mediation analysis to explore the roles of motivation, trust, and absorption capacity. The results highlight the critical role of knowledge sharing in enhancing employee performance by improving motivation and the ability to absorb and utilize knowledge. Organizations should prioritize creating an environment that facilitates knowledge sharing, with a particular focus on boosting motivation and learning, while also recognizing the importance of trust. The study found a significant positive relationship between knowledge-sharing practices and employee performance at the Bank of Abyssinia, supporting social exchange theory and the knowledge-based view of the firm. Employees with positive perceptions of knowledge sharing exhibited enhanced task and contextual performance. Key mediators—motivation, trust, and absorptive capacity—accounted for 78.9% of the total effect of knowledge sharing on performance. Knowledge-sharing practices explained 44.8% of the variation in task performance and 45% in contextual performance, highlighting their direct impact on employee effectiveness. The findings emphasize the need for organizations to foster a supportive environment that enhances motivation, trust, and absorptive capacity. Based on the findings of the study, the researcher forwards sound recommendations including that organizations promote a culture of knowledge sharing to enhance employee performance, focusing on individual factors like motivation, trust, and absorptive capacity. Implementing performance management systems, developing user-friendly technologies, and fostering a trusting environment are essential. Additionally, customized training programs and continuous learning initiatives should be established, along with regular monitoring and feedback mechanisms to further improve knowledge-sharing practices and employee effectiveness.
Key Terms: performance management systems, Knowledge Sharing practices