Knowledge Management Effect on Ethiopian Commercial Banks by Mediation of Competitive Advantage

Abstract

This study investigates the influence of knowledge management upon performance of organization in the segment of banking, addressing the topic of using knowledge practices to enhance competitive advantage as well as overall performance. The study analyzes data obtained from 391 banking experts using structural equation modelling (SEM) and AMOS software. The analysis employs quantitative indicators to examine the associations between Knowledge Management, Competitive Advantage, along with organizational performance. The study determined that Knowledge Management had a strong beneficial impact upon Organizational Performance (p < 0.001) as well as Competitive Advantage (0.421). Competitive Advantage has a significant standardized effect of 0.801 upon Organizational Performance (p < 0.001), indicating a mediating role in the link among Knowledge Management and Organizational Performance. The outcomes emphasize the prominence of management of knowledge in improving organizational performance through Competitive Advantage. Organizations ought to focus on Knowledge Management projects in order to enhance their performance indicators. Future directions involve designing complete information Management systems, cultivating a culture of information sharing, and aligning knowledge strategies alongside corporate goals for optimum effectiveness.