Knowledge Management Dimensions and Sustainable Competitive Advantage (SCA) of Deposit Money Banks: Mediating Role of Innovation

Abstract

The primary objective of the current research was to explore how the Knowledge Management (KM) processes of Deposit Money Banks (DMBs) in Makurdi Metropolis contribute to their Sustainable Competitive Advantage (SCA). Additionally, this study determined to evaluate how innovation helps the banks to retain their competitive advantage. A total of 265 valid samples were collected from a population of 14 DMBs and 933 respondents were selected from these DMBs. The data was analysed using Structural Equation Modelling (SEM). While testing the assumptions, hypotheses 1-3 supported the proposition that KM dimensions; acquisition (β=.32, p <.05), utilization (β=.26, p <.05), and storage (β=.24, p <.05) were directly related to SCA. No evidence was found for the full mediating role of innovation in relation to KM dimensions and SCA, as demonstrated by the data. However, innovation does play a role in certain aspects of KM by demonstrating that acquisition (β=.69, p <.05), utilisation (β=.21, p <.05), and storage (β=.18, p <.05) are positively associated with innovation in DMBs. The findings indicated that managers who responded to KM were more innovative. The importance of DMBs lies in the recognition that knowledge is not a simple concept. A commitment to new discoveries and to new understandings is not sufficient. Enterprises need to pursue knowledge that enables them to add value.

A Systematic Review and Meta-Analysis of Knowledge Management and Competitive Advantage in the Banking Industry of Ethiopia

“…As an illustration, consider a specific "Leaving Expert Debriefing" in which supervisors, as well as the staff, are examined by colleagues in maintaining the expertise of their specialists that are intending to leave their current business. There were a number of classes within the conference sessions including coaching participatory discussion, and figuring out solutions [6,10,19,22,27].…”

“…Every CoP ought to have a Leader or Moderator in charge of setting the group's goals and keeping the community's attention on them. In addition, a Core Team works with the Leader to develop seminars and activities, which help the Leader [3,5,7,12,19,25]. Each of the community's active members contributes their particular skills, knowledge, and role.…”

“…It may be difficult to create and sustain those CoPs online for the purpose of knowledge development, though, because the technology and social structure demand a lot of labor [5,10,15,25,28]. Organizations may also have less control over online CoPs that exist outside of their boundaries [5,13,19,26]. Therefore, not all company's needs for KM may be met by online CoPs.…”

“…Strong KM leadership [2,8,13,16,21,27] and having a title-holder (i.e., a highly prominent person inside a company that supports KM) [1,8,17,24,28,30] were commonly mentioned as essential facilitators. A positive approach regarding information sharing and working together is essential for successful KM [3,[18][19][20]28] as well as developing relationships with the appropriate individuals [5,12,16,28]. For instance, [6,20,21,25,29] asserts that this feature is essential to promote an association with the passing professional and his or her replacement so as to cover the discrepancy throughout an alteration of responsibility.…”

“…According to research, it may be advantageous to have a location or social environment that facilitates and encourages knowledge exchange. [18,19,22]. But there is still a difficulty with how long such constructs may persist [29].…”