Effects Of Knowledge Management Practices On Organizational Performance: The Case Of Ethiopian Airlines

Abstract

The purpose of this research was to examine the effect of Knowledge Management on the organizational performance of Ethiopian Airlines. This study was conducted using an explanatory research design, and it falls under the category of causal research. Furthermore, the researcher utilised a combination of quantitative and qualitative approach. To achieve the study objectives, the researcher developed and distributed questionnaires and collected and analysed the data with the SPSS version 20 tool by using descriptive and inferential statistics. The researcher employed probability sampling technique. In order to construct a sample, Stratified random sampling technique employed. 341 employees were chosen from a population of 3050 strategic unit employees, and 324 questionnaires were collected, yielding a 95% response rate. The findings of the study demonstrate a substantial and positive correlation between the organisational performance of EAL and the Knowledge Management parameters (knowledge acquisition, storage of knowledge, knowledge sharing, and knowledge application). According to the regression analysis's result, the independent factors are responsible for 60.8% of the variance in the dependent variable (organisational performance), with an estimated standard deviation of 0.42792. Around 9.4% of the variability in the dependent is attributed to the other variables that were not taken into account in this study. While knowledge sharing and application were ranked highest and hence required more attention than other KM dimensions, the results of the study indicate that all KM dimensions included in the study had a significant positive impact on organisational performances. It is advised that EAL set up a strong system of information exchange that makes it simple for the company to incorporate best practices, exposures, and experiences in order to enhance knowledge sharing and application, particularly with regard to EAL's ICT and are followed, they should explicitly define the KM policy and connect it to the strategic information management infrastructure. In order to make sure that the set guidelines and norms objectives