Abstract:
The purpose of this study is to examine the practice of knowledge management and its effect on
organization performance in commercial bank of Ethiopia under kolfe district. The study used
explanatory survey design to objectively answer the research question and quantitative method was
employed for this study. The knowledge management practice has been measured through the
indicators such as Knowledge Creation, Knowledge Application; Knowledge Sharing, Knowledge
Conversion and Knowledge Storage were used in this study. For achieving the study objective, 151
sample respondents were selected through simple random sampling technique from CBE select
branches (Alem bank, SeferEyor, Anfo and Tropical) for purpose of study.Accordingly, data were
collected through self-administered questionnaire from sample respondents. Out of 151
respondents, workable data were obtained from 145 respondents. Those data, then, analyzed
through descriptive and inferential statistics. The finding of descriptive analysis revealed that the
mean score for knowledge management practice is slightly above the midpoint of the average. From
the five components of knowledge management practice, Knowledge application and sharing are
the only items that fall under high score, whereas, the remaining facets fall under moderate
average. The correlation analysis result showed that there is a significant positive relationship
exists between knowledge management practice and organization performance. Moreover, the
regression analysis evidenced that knowledge management practice is highly own effect on
organization performance.The study suggested that, overall an emphasis should be given by
institute on all components Knowledge management practices such as how knowledge could be
create, applicant, sharing, converse and stored; therefore, the organization must be impression
strategy that specify knowledge management practice to enhance Organization performance and
should be coherence within organization vision, mission, and values.
