The effects of knowledge creation process upon the organizational performance: A study of Thai banking industry.

Abstract

Business competition drives organizations to adapt themselves to become survivors. As knowledge-based economy emerged, knowledge management (KM) turns to be a principle for organizations to maximize to the value of knowledge. Among KM domains, knowledge creation is the most concerned aspect when it comes to innovation, creativity, performance and learning. Nonaka and Takeuchi (1995) propose the concept of knowledge creation called ‘The SECI model’ which is the well-known theory of knowledge conversion in organization. Reviewing on academic literatures, the application of SECI model is hardly seen in developing countries especially in banking industry. The objective of this study is to investigate the effects of knowledge creation upon the organizational performance. The research scope is banking industry in Thailand, focusing on commercial banks. Quantitative methods were conducted to analyze data of 400 banking employees. Quality of measurement in term of reliability and validity were tested by using Cronbach’s alpha and Factor analysis. The goal of research was achieved by developing statistical testing using multiple regression, independent t-test, and one-way ANOVA. The results indicate that SECI process was adopted in Thai banking industry. Findings also indicate that knowledge creating process positively affected to organizational performance. However, based on Holistic scorecard framework, not all modes of SECI process were significantly affected to each perspective of organizational performance. Knowledge creation process was also influenced by collective culture and the nature of banking industry which made each SECI process affected differently to organizational performance.