Effect of Knowledge Management Practice on Organizational Performance in Case of Commercial Bank of Ethiopia, Under Kolfe District

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.