The impact of organisational culture and knowledge creation process on organisational creativity and performance in knowledge-intensive banks

Al Mulhim, Abdullah Fahad

Abstract

Knowledge management (KM) has various implications for organisational performance and competitiveness. Proponents argue that knowledge creation (KC) is extremely important for the long-run progress of an organisation. However, previous research has not demonstrated the application of each of the socialisation, externalisation, combination and internalisation (SECI) conversion processes in approaches to the study of KC and performance in specific business situations. In particular, the banking sector, which is a knowledge-intensive industry. In addition, some researchers claimed that the SECI model was based on Japanese standards; so the validity of this model in different cultures is also questionable. Furthermore, there is a significant gap in the literature, in terms of lack of empirical evidence that KM makes a difference to organisational performance. To fill these gaps, this study utilises an integrated model that interconnects and analyses the relationship between organisational culture, knowledge creation processes and firm performance, and specifically the role of the KC process and creativity in this relationship. The emphasis is on knowledge creation process (KCP), such as socialisation, externalisation, combination and internalisation in the context of domestic banks operating in Saudi Arabia.
This study adopts a quantitative research method through a case study approach to classify and examine the proposed model. A stratified random sample was drawn from 32 branches of two knowledge-intensive commercial banks in Saudi Arabia. Two hundred and fourteen self-administered questionnaires were collected to analyse the impact of organisational culture and the knowledge creation process on organisational creativity and performance. The survey data were examined by confirmatory factor analysis (CFA) and regression analysis. CFA revealed a decent model fit. The results confirmed that the organisational culture, which comprises trust, collaboration and learning factors, is observed to be an influential empowering agent. The results suggest KCP mediates the relationship between organisational culture and creativity, and of creativity mediates the relationship between KCP and firm performance. The internalisation process had the strongest impact on creativity and combination had an insignificant effect. In addition, the findings showed socialisation as a key antecedent for the exchange of tacit knowledge (TK) in the Saudi banks considered and the regression results indicated that the internalisation process helped Saudi banks to internalise explicit knowledge (EK) into TK during KCP. Consequently, this study supports the applicability of the SECI model in a new cross-cultural context and makes an important contribution to the existing literature by empirically investigating the relationship between organisational culture, KCP, creativity and firm performance. The findings not only provide a basis for further research in the field, but also have implications for chiefs at Saudi banks looking for management knowledge.

Citation

Al Mulhim, A. F. The impact of organisational culture and knowledge creation process on organisational creativity and performance in knowledge-intensive banks. (Thesis). University of Hull. https://hull-repository.worktribe.com/output/4224579

• Thesis Type: Thesis
• Deposit Date: Jan 5, 2023
• Publicly Available Date: Feb 24, 2023
• Keywords: Business
• Public URL: https://hull-repository.worktribe.com/output/4224579
• Additional Information: Business School, The University of Hull
• Award Date: Sep 1, 2017