Literature Review PDF

ijcrb.webs.
com
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JULY 2013
VOL 5, NO 3
The Role of Knowledge Management in Banks Sector (Analytical

Study- Jordan)
Faisal Bourini
Applied Science Private University
Assistant Professor
Khaldoon Khawaldeh,
Assistant Professor
Shaker Al-Qudah,
Lecturer
Abstract
The aim of this study is to identify the extent of knowledge management activities that are
practiced by Jordan banks in the Hashemite Kingdom of Jordan, knowledge management is
the ability to link structured and unstructured information with the changing rules by which
people apply it. It is not a technology, but a strategic solution that applies information
technologies. The present study concluded that: Banks sector was successful in establishing
its own concept of knowledge management, the results shows that knowledge management
activities practiced were mostly high. There was a positive statistical relationship between
knowledge management strategy and practice degree of knowledge activities. There is no
effect was reported for demographics (sex, age, qualification, experience years, and section)
on practicing degree of knowledge management activities in Jordan banks. The results
indicate that there is no statistical differences relate to education, experience, management
level variables in the role of knowledge management at the level of significance < 0.05 in
all activities. Study recommended that Researchers recommend his colleagues that are
necessary to expand in knowledge management concept study for its importance in
organizations support advantage. Researcher recommends organizations to adapt Jordan
banks approach in knowledge management concept, through practicing activities related to
this concept. In the researcher's view, it is necessary to held training courses to the employees
who are in Jordan banks to recognize the knowledge management concept and its principles,
and its importance, to better understand their role in knowledge management in all activities.
Keywords: Knowledge Management, Knowledge Management activities, Knowledge
Management process
COPY RIGHT 2013 Institute of Interdisciplinary Business Research
53
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
1. Introduction
Knowledge management has become the most popular information management
concept in corporate and academic circles. While it can be certified that knowledge
management is a strategic solution that makes use of information technologies, the concept
has not yet been given a clear definition because it is still new and thus continues to shift and
evolve. (Dykman.1998).
This study will highlight the nature of knowledge and knowledge management in
Jordan banks that considered as one of the leading high- tech companies in Jordan.
This research tries to adopt and validate knowledge management instrument which
enables Jordan banks to characterize initiate knowledge management profile. It is not a new
idea. It is not a single tool, but an overall discipline, a systemic strategy of how to create and
deliver information and provide information processing tools to enable workers to
accomplish work.
The importance of this study is to show the effects of knowledge management in the
management systems in the Jordan banks. The problem of this study is that to identify
knowledge management concept in Jordan banks. This concept still has ambiguous. The
purpose of this study is to measure and validate a knowledge management concept in Jordan
banks. It should help managers to initiate a knowledge management portfolio for Jordan
banks.
2. Literature Review
2.1 Knowledge Concept
Data, Information and Knowledge:
Data are a collection of facts, measurements, and statistics. Information is organized
and processed data that are timely (i.e, inferences from the data are drawn within the time
frame of applicability) and accurate. Knowledge is information that is contextual, relevant,
and actionable. (Holsapple- , 2003)
(Warier, (2003) says that, knowledge is the full utilization of information and data, coupled
with the potential of people's skills, competencies, ideas, intuitions, commitments and
motivations. Indicates that knowledge means information and data that's help organization to
solve their problems. Knowledge is present in ideas, judgments, talents, root causes,
relationships, perspectives and concepts of every individual. Knowledge resides in an
individual brain or is encoded in organizational processes, documents, products, services,
54
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
facilities and systems. Knowledge is the result of learning which provides the only
sustainable competitive advantage. Knowledge is all about action.
2.2 Types of Knowledge

Polanyi (1966) divided knowledge as the following:
1- Tacit Knowledge: Is the cumulative store of experiences, mental maps, insights,
acumen, expertise, know-how, trade secrets, skills sets understanding and learning that an
organization has as well as the organizational culture. It is usually in the domain of
subjective, cognitive, and experimental learning. It's difficult to capture, codify, adopt and
distribute, as (Polanyi, 1966) put it, "We can know more than we can tell".
2- Explicit Knowledge: Is the policies, procedural guides, white papers, reports,
designs, products, strategies, goals, missions and core competencies of the enterprise and the
information technology infrastructure. It deals with more objective, rational, and technical
knowledge and it's easy to articulate capture and distribute in different format. It is codified,
transmittable, (Polanyi, 1966).
2.3 Knowledge Management Concepts

Knowledge Management: is managing the corporations knowledge through a
systematically and organizationally specified process for acquiring, organizing, sustaining,
applying, sharing and renewing both the tacit and explicit knowledge of employees to
enhance organizational performance and create value. (Allee, 1997), (Davenport, 1998),
(Alavi, et.al.2001).
Knowledge Management, is a process of knowledge creation, validation, presentation,
distribution and application (Bhatt, 2001).
Through previous definitions can say that knowledge management is a process that
helps to improve organization through, find, select and transfer important information and
expertise.
2.4 Knowledge Management Dimensions

2.4.1. Knowledge Creation:
Nonaka and Takeuchi (1995) in their model distinguish between tacit and explicit
knowledge and indicate that knowledge is created through continues conversion processes as
a spiral. These processes are:
55
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
(1) Socialization: tacit to tacit. Tacit knowledge can be shared directly from one
person to another through communication, observation, learning and imitation.
(2) Externalization: tacit to explicit. The conversion process of tacit knowledge into
explicit knowledge is called externalization. It is not easy to convert tacit knowledge
precisely into explicit knowledge, especially when experiences, belief and skills are involved.
Besides ordinary presentation tools, effective externalization processes may need methods,
such as metaphors and story-telling, to convert internal concepts and values into explicit
knowledge.
(3) Combination: explicit to explicit. Explicit knowledge such as documents, data,
E-mails can be reconfigured, combined and integrated to generate new explicit knowledge.
This is the process of combination. This is a relatively easier process, as many tools are
available.
(4) Internalization: explicit to tacit. A person, after capturing explicit knowledge, must
internalize it into his/her own tacit knowledge before it can be applied. It is a learning
process.
2.4.2. Knowledge Capture

(Barchan, (1999) suggests that the organization loses the knowledge people, e.g.
investment made for professional development and competence, when a member of staff
leaves an organization. When employees leave the organization, the co- employees
temporarily maintain the position until another person is recruited. Organizations attempts to
transform tacit knowledge into explicit knowledge have, in the main, been unsuccessful. The
ability to survive and thrive relies, to some extent, on an organization's ability to maintain and
retain old and new knowledge in the face of complexity, uncertainty and rapid change.
2.4.3. Knowledge Store

Refers to organizational memory processes, where information and knowledge are
formally stored in the knowledge management system physical memory systems, and
informally retained in the values, norms, and beliefs associated with organizational culture
and structure (Walsh and Ungston, 1991).
2.4.4. Knowledge Dissemination

Knowledge must be made available in a useful format to anyone in the organization
who needs it, any where and any time. Knowledge dissemination consists of knowledge
transfer and knowledge sharing, and knowledge dissemination is a challenge. Lack of time,
56
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
lack of communication skills and rapid change in Information and Communication

Technologies (ICT) are highlighted as some of the main concerns for knowledge
dissemination. (Turban, et.al.2004)
2.4.5. Knowledge Acquisition

Darroch (2003) suggests that knowledge acquisition is captured by six factors:
Valuing employees attitudes and opinions and encouraging employees to up-skill, having a
well-developed financial reporting system; being market focused by actively obtaining
customer and industry information, being sensitive to information about changes in the
marketplace, employing and retaining a large number of people trained in science,
engineering or math, working in partnership with international customers, and getting
information from market surveys. Five factors describe the knowledge dissemination
construct: readily disseminating market information around the organization, disseminating
knowledge on-the-job, using techniques such as quality circles, case notes, mentoring and
coaching to disseminate knowledge, using technology (such as teleconferencing,
videoconferencing and groupware).
2.4.6. Knowledge Filtering

This activity refers to the revision of the knowledge gained to fit the needs of the
organization as well as to identify knowledge task of the organization to be disseminated and
shared among individuals in the organization (De Tienne et al., 2001).
2.4.7. Knowledge Auditing

Knowledge auditing include assessment, review and examine the knowledge base to
ensure
the current situation being experienced by the organization, and the process of
auditing through the interaction of the elements of human knowledge management,

organizational and technological and recruitment techniques, procedures and means of
modern working.
2.4.8. Knowledge Application

This stage will make knowledge and applied linked with the practice and use in
solving problems that might face the organization. The knowledge application directly affects
the organization's ability to maintain its competitive advantage.
57
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
2.4.9. Knowledge Development

Teece, (1998) indicates that the relationship between knowledge and performance is
viewed in a way that knowledge contributes to performance through innovation. More
specifically, knowledge initiates product innovation leading to better quality products and
process innovation leading to lower cost products and/or production systems. The ability of
producing better quality and/or lower cost products can be considered as organizational
competencies developed by deploying knowledge assets or through knowledge management
and innovation. Competencies include business-level organizational processes fundamental to
running the business (e.g. order entry, customer service, product design, quality control and
inventory management).
2.4.10. Knowledge Strategies

Strategic knowledge emphasizes the extension of corporate activities, rather than
improvement and problem solving. Consequently, it involves many actors, and may help to
create a community between knowledge and products where one did not exist before (Newell
et al., 2002).
3. Literature Review
Gupta and McDaniel, (2002) argue that knowledge is referred to as an expensive
commodity, which, if managed properly, is a major asset to the company. Knowledge is a
complex and fluid concept. It can be either explicit or tacit in nature. Explicit knowledge can
be easily articulated and transferred to others. In contrast, tacit knowledge, which is personal
knowledge residing in individuals' heads, is very difficult to articulate, codify and
communicate.
Drucker (2004) indicates that nowadays society is knowledge based society and
argues that the knowledge society has to be highly specialized to be productive and need to
apply two new requirements:
1. Knowledge workers work in teams; and
2. Knowledge workers have to have access to an organization which, in most cases, means
that knowledge workers have to be employees of an organization.
The conclusion of this study is that, there are social problems, the rise of knowledge workers
and the emergence of the knowledge society will pose any number of new social problems
and new social challenges which will occupy us for decades to come.
58
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
(Adams & Lamont, 2003) argue that, the role of knowledge management systems to
create competitive advantage by making it difficult to develop and maintain, because of rapid
technological developments, and the ability of competitors to watch and tradition of the
organization quickly and therefore, the organization must blending resources, competencies
and capabilities that they possess, and continually learns how to use this combination to
develop and maintain competitive advantage. According to the study, knowledge
management systems alone can not find and maintain competitive advantage and the role of
knowledge management systems highlights through coming with the rest of the resources and
skills that belong to the organization and study suggested model shows how the Organization
can obtain a competitive advantage and maintain, this model consists of the following
elements:
* Knowledge management systems that assist in the acquisition, storage, deployment,
retrieval, and knowledge management.
* Information and knowledge are collected and disposed of through knowledge management
systems, which are available to members of the organization to facilitate the development and
the invention of goods and services and operations.
* Material and financial resources, human and organizational owned by the organization,
affecting the organization's ability to benefit from the knowledge.
* Internal processes such as: strategic planning, knowledge management; by which transfer
information, knowledge and resources owned by the Organization to undesirable results.
* Career system through which to improve the level of goods, services, processes and the
development of new goods and services.
* Permanent competitive advantage, which is the outcome of interaction between the above
elements, and represent the organization's ability to achieve the level of performance is higher
than the average obtained by competitors in the same industry.
Kalling, (2003) study aims to deal with the issue of converting knowledge into
improved performance, to improve the understanding of knowledge management. A model
linking knowledge with performance is presented. Managing knowledge so as to improve
performance is less well discussed. In many of the discussed approaches, there is, evidently,
an assumption that there are few obstacles to the use or capitalization of knowledge.
(Feng et al., 2004) investigated to clarify the effect of the development of a
knowledge management system for the organization's performance by comparing the
performance of organizations that have adopted knowledge management systems with those
59
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
that had not developed systems for knowledge management. Results showed that
organizations that adopt knowledge management systems achieved a reduction in
administrative costs and an increase in productivity during the second year of adopting
knowledge management systems, and using the profit and cost ratios indicate the presence of
important differences, because the financial performance of organizations that do not
embrace the knowledge management systems fall with the passage of time, while it remains
steadfast to organizations that adopt knowledge management systems.
4. Originality of Study
This study is the second in its field in Jordan which talks about the Knowledge Management
Concept with studying and analysis..
This research is exploratory in nature because very few studies conducted to
characterize the knowledge management in banks sector. Moreover, this research could be
considered as an analytical study. It tries to generate a knowledge management profile for
Jordan banks for the four main banks ventures (Jordan bank, Arab bank, Housing bank and
Jordan Kuwait bank). Furthermore, this study tries to explore the nature, direction, and
significance of the bi-vitiate relationship between knowledge management and Jordan banks
technical efficiency.
5. Methodology
5.1Research Hypotheses
H1: First Hypothesis: there is a statistically significant positive correlation between the
overall knowledge activities and its strategy.
5.2 Data Collection
To collect data from its own sources, researcher conducted a personal interview with
four directors in Jordan banks questionnaire used to measure knowledge management
practices in Jordan banks.
Study community consists of all the managerial levels in Jordan banks that they are
(370), 170 questionnaires had been distributed on random sample that has managers,
departments heads, assistant managers and other sections heads for the Jordan banks. (139)
questionnaires had been returned and 139 had been analyze that mean about 81 percent
from all responds, returned and analyzed.
60
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
5.2.1 Validity Tests

Content validity and construct validity of an instrument can be established through a
correlation analysis. Pearson correlation test was used to establish the content and construct
validity of knowledge management activities measurement instrument used and its strategy.
5.2.3 Reliability: Cronbachs Alpha Coefficient
Cronbachs alpha was used to test the knowledge management dimensions
(knowledge creation, knowledge acquisition, knowledge filtering, knowledge storage,
knowledge
auditing,
knowledge
application,
knowledge
distribution,
knowledge
development, community & practice and knowledge strategies). Table (2) presents the
reliability results.
The Cronbachs coefficient alpha values for the all knowledge management activities more
than (0.60), which mean its good result except knowledge acquisition activity. The greatest
percentage is (.874) for Community & Practice activity whereas the least percentage is (.238)
of knowledge acquisition activity. The reason for the low value of consistency coefficient of
paragraphs that measure this activity is the differences of viewpoint on the concept of
knowledge acquisition in Jordan banks.
5.2.4 Descriptive Statistical Techniques
The analyzing scale that is used to represent results will be as follows:
Means (1- 2.5) indicates weak usage
Means (2.51-3.5) indicates average usage
Means (3.51-5) indicates strong usage
61
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
6. Analysis and Results

Study Question: To what extent Jordan banks practices knowledge management
activities?
Question one: To what extent Jordan banks can practice knowledge creation activity?
Table 3 (Knowledge Creation)
#
Mean
1
2
3
4
5
6
7
8
9
My company concerns with developing abilities and skills of

subordinates
Renewal and creation are very important for my job.
My company concerns with new ideas, thought and suggestions
proposed by employees
My Company cares for motivating and rewarding creative
persons (employees)
My Company encourages collective work and subordinates
cooperation instead of competition
My company encourages employees to seek new ideas from all
possible sources (i.e. Internally and Externally)
My company gives its employees the freedom to organize and
carry out their job by methods and means they believe
appropriate.
My company has a strong commitment to new ideas because of
its important role in achieving innovation.
My company's information system facilitates ideas sharing
between or among employees to achieve innovation
Total
Std.
Deviation
4.61
.794
4.74
.556
4.63
.694
4.55
.763
4.66
.620
4.58
.681
4.36
.742
4.60
.729
4.45
.934
Practicing
level
strong
strong
strong
strong
strong
strong
strong
strong
strong
4.57
Table (3) describes the descriptive statistics of knowledge creation activity in Jordan
banks is done in strongly degree of practicing in which general mean is (4.57).
The results that are mentioned in table (3) indicates that the activity which is related
with the renewal and creation are very important for job has the first degree with mean (4.74)
reflecting strong practicing degree, whereas the activity which relate with company
encourages collective work and subordinate cooperation instead of competition has the
second degree with mean (4.66), reflecting strong practicing degree. Whereas the activity
which related with company concerns with new ideas, thoughts and suggestions proposed by
employees has the third degree with mean (4.63) reflecting strong practicing degree, whereas
the activity which related with company concerns with developing abilities and skills of
subordinate has the fourth degree with means (4.61) reflecting strong practicing degree,
whereas the activity which related with company has a strong commitment to new ideas and
the important role to achieve innovation has the fifth degree with means (4.60) reflecting
strong practicing degree. The sixth degree was company encourages employees to seek
employee ideas from all possible sources internally or externally with mean (4.58) reflecting
62
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
strong practicing degree. The seventh degree was company cares for motivating and
rewarding creative employees with means (4.55) reflecting strong practicing degree. The
eighth was company information system facilitates ideas sharing between or among
employees to achieve innovation with mean (4.45) reflecting strong participating degree.
Finally the ninth degree was company gives its employees the freedom to organize and carry
out there job by methods and means they believe appropriate with mean (4.36) reflecting
strong practicing degree. The low standard deviations indicate the agreement of the views of
sample on knowledge creation activity in the Jordan Banks.
Results show that the nature of the work in Jordan banks requires attention to the
knowledge and creativity, and concerns focused on the activation of the role of information
and digital economy and the introduction of new technologies to improve performance and to
the changing environment and the impact of competition in an active interest in cognitive
construction. Therefore, we can say that main ingredient of creativity and knowledge creation
exists in Jordan banks through motivations to staff.
Question Two: To what extent Jordan banks practices knowledge acquisition activity?
Table (4) (Knowledge Acquisition)
#
Mean
10
11
12
13
14
My company seeks the help of external experts and specialists

to transfer their knowledge and experience to our personnel.
My company is concerned in participating in conferences and
workshops inside and outside Jordan as a method of
obtaining knowledge.
My company encourages personnel to join training programs
inside and outside Jordan to gain knowledge in their fields.
My company seeks to qualify its personnel through
scholarships award to gain knowledge of modern technology
in the field of communication.
My company encourages personnel to benefit from the
experience of successful international practices and
knowledge to adopt them.
Total
Std.
Deviation
4.71
.664
4.73
.597
4.51
.820
2.90
1.491
4.50
.854
Practicing
level
strong
strong
strong
weak
strong
4.27
Table (4) describes the descriptive statistics of knowledge acquisition activity in

Jordan banks is done in strongly degree of practicing in which general mean is (4.27).
The results that are mentioned in table (4) indicate that the activity which is related
with company is concerned in participating in conferences and workshops inside and outside
Jordan as a method of obtaining knowledge, has the first degree with mean (4.73) reflecting
strong practicing degree, whereas the activity which related with company seeks the help of
external experts and specialists to transfer their knowledge and experience to our personnel
has the second degree with mean (4.71), reflecting strong practicing degree. Whereas the
63
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
activity which related with company encourages personnel to join training programs inside
and outside Jordan to gain knowledge in their fields has the third degree with mean (4.51)
reflecting strong practicing degree, whereas the activity which related with company
encourages personnel to benefit from the experience of successful international practices and
knowledge to adopt them has the fourth degree with mean (4.50) reflecting strong practicing
degree. Finally the fifth degree was company seeks to qualify its personnel through
scholarships award to gain knowledge of modern technology in the field of communication
with mean (2.90) reflecting low practicing degree, the reason for the low value of consistency
coefficient of paragraphs that measure this activity is the differences of viewpoint on the
concept of knowledge acquisition in Jordan banks. The low standard deviations indicate the
agreement of the views of sample on knowledge creation activity in the Jordan banks.
Previous results show that the Jordan banks consider to the knowledge management
as an open system affect and be affected by the external environment. The reason is that the
group is part of this environment, and knowledge management process can't separate from the
external environment.
Question three: To what extent Jordan banks practices knowledge filtering activity?
Table (5) (Knowledge Filtering)
#
Mean
15
16
17
18
In case of adopting successful international communication

practices, my company modifies these practices to be suitable
for Jordanian conditions and environment.
My company filters obtained knowledge and determines the
most important part to be distributed and exchanged between
personnel.
In my company each department determines important
knowledge in its field to be distributed and exchanged
between personnel.
When new knowledge is created my company filter (adjust) it
to be suitable for work environment.
Total
Std.
Deviation
4.63
.651
4.58
.636
4.58
.712
4.51
.716
Practicing
level
strong
strong
strong
strong
4.58
Table (5) describes the descriptive statistics of knowledge filtering activity in Jordan
with adopting successful international communication practices, company modifies these
practices to be suitable for Jordanian conditions and environment, has the first degree with
mean (4.63) reflecting strong practicing degree, whereas the both activities related with
company filters obtained knowledge and determines the most important part to be distributed
64
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
and exchanged between personnel and company in each department determines important
knowledge in its field to be distributed and exchanged between personnel has the second
degree with mean (4.58), reflecting strong practicing degree. Finally the third degree was
when new knowledge is created company filter (adjust) it to be suitable for work environment
with mean (4.51) reflecting low practicing degree. The low standard deviations indicate the
agreement of the views of sample on knowledge filtering activity in the Jordan banks.
It is essential that a Jordan banks to filter internal knowledge through classification,
set possess large quantities of knowledge vary in importance. Therefore, should distinguish
such information according to their importance and need.
Question Four: To what extent Jordan banks practices knowledge storage and
representation activity?
Table (6) Knowledge Storage & Representation
19
20
21
22
My company has a comprehensive, adequate database or

(knowledge base) which is available for all personnel.
My Company documents new acquired knowledge for each
accomplished project.
I document problems we faced and methods used to solve these
problems for future benefits.
In each department, we document experts knowledge
and organize it as stories of success to be used as basis for
problem solving.
Total
Mean
Std.
Deviation
4.36
.722
4.65
.656
4.69
.612
4.07
.906
Practicing
level
strong
strong
strong
strong
4.44
Table (6) describes the descriptive statistics of knowledge storage and representation
activity in Jordan banks is done in strongly degree of practicing in which general mean is
(4.44).
with document problems we faced and methods used to solve these problems for future
benefits, has the first degree with mean (4.69) reflecting strong practicing degree, whereas the
activity related with company documents new acquired knowledge for each accomplished
project has the second degree with mean (4.65) reflecting strong practicing degree, whereas
the activity related with company has a comprehensive, adequate database or (knowledge
base) which is available for all personnel has the third degree with mean (4.36) reflecting
strong practicing degree, whereas the activity related with each department, documents
experts knowledge and organize it as stories of success to be used as basis for problem
solving has the fourth degree with mean (4.07) reflecting strong practicing degree.
65
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
The low standard deviations indicate the agreement of the views of sample on
knowledge storage and representation activity in the Jordan banks.
Note from previous findings that the activity of knowledge storage in the Jordan
banks was high, and the reason behind this was that the level of information technology
support to the activities of advanced knowledge management in terms of the provision of
necessary tools to do so from computers and advanced software, add to that a Jordan banks,
knowledge store of experts who are in the group, through databases and individuals can
workers access and retrieval by using search tools.
Question Five: To what extent Jordan banks practices knowledge auditing activity?
Table (7) Knowledge Auditing
#
23
24
25
26
27
28
In my department, my concern is to follow up new ideas in

my work and transfer it to my subordinates.
In my department, I regularly review work processes and
procedures to ensure up-to-date ness.
I always follow up to ensure that my subordinates review
methods gained during training courses.
My company continuously concerns in training courses to
develop personnel skills and knowledge.
I regularly review and modify database in my department
I regularly compare my departments performance with
other departments to be aware of my weakness points.
Total
Mean
Std.
Deviation
Practicing
level
4.81
.559
strong
4.79
.458
strong
4.74
.516
strong
4.63
.673
strong
4.62
.642
strong
4.63
.753
strong
4.70
Table (7) describes the descriptive statistics of knowledge auditing activity in Jordan
with managers, concerns to follow up new ideas in work and transfer it to subordinates, has
the first degree with mean (4.81) reflecting strong practicing degree, whereas the activity
related with all departments, they regularly review work processes and procedures to ensure
up-to-date has the second degree with mean (4.79) reflecting strong practicing degree,
whereas the activity related with managers always follow up to ensure that subordinates
review methods gained during training courses has the third degree with mean (4.74)
reflecting strong practicing degree, whereas the both
activities
related with company
continuously concerns in training courses to develop personnel skills and knowledge and
managers regularly compare their departments performance with other departments to be
aware of any weakness points has the fourth degree with mean (4.63) reflecting strong
practicing degree. Finally the fifth degree was related with managers regularly review and
66
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
modify database in their departments with mean (4.62). The low standard deviation indicates
the agreement of the views of sample on knowledge auditing activity in the Jordan banks.
Previous results show that the Jordan banks interested in the process of training, for
its importance to develop the ability of managers, to develop the skills of individuals to deal
with knowledge management technology.
Question six: To what extent Jordan banks practices knowledge application activity?
Table (8) Knowledge application
#
Mean
29
30
31
32
When new methods to improve work emerged, I adopt them

instantly.
I treat all information I receive from any source (internal or
external) and benefit from it.
Typically, I dont face difficulty in applying work methods
that I have been trained on.
I always follow up to ensure that my subordinates use and
apply methods gained during training courses.
Total
Std.
Deviation
4.71
.555
4.63
.581
4.19
.600
4.48
.765
Practicing
level
strong
strong
strong
strong
4.50
Table (8) describes the descriptive statistics of knowledge application activity in

with when new methods emerged together to improve work, company adopts them instantly
has the first degree with mean (4.71) reflecting strong practicing degree, whereas the activity
related with treating all information which received from any source (internal or external) and
benefit from it has the second degree with mean (4.63) reflecting strong practicing degree,
whereas the activity related with company always follow up to ensure that subordinates use
and apply methods gained during training courses has the third degree with mean (4.48)
reflecting strong practicing degree. Finally the fourth degree was related with difficulty in
applying work methods that have been trained on, with mean (4.19).
The low standard
deviations indicate the agreement of the views of sample on knowledge application activity in
the Jordan banks.
Previous results show that the activity of the application of knowledge effective, the
application of the methods of work by individuals were trained had been effectively.
67
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
Question Seven: To what extent Jordan banks practices knowledge distribution and
exchange activity?
Table (9) Knowledge Distribution & Exchange
#
Mean
33 Our database includes a list of names and addresses of

experts to call up for consultancy when needed.
34 I dont face difficulty in accessing any information I need
in my work.
35 I foster and promote training courses to develop
employees skills in sharing and exchanging new ideas.
36 I have an intranet (internal communication network)
which enables me to share and exchange knowledge with
others.
37 I can easily access internet to collect any information I
need.
38 I use e-mail to share and exchange knowledge with
others.
39 I dont hesitate to ask for help or advice from my
managers or colleagues at work.
40 I have enough time to interact and work with my
colleagues to discuss work related issues.
41 I link up incentives to the ability of individuals to
distribute and share knowledge with others.
42 I encourage group work as it enables me to share and
exchange knowledge with others.
43 I encourage informal meetings between or among
subordinates.
Total
Std.
Deviation
4.45
.694
4.64
.659
4.58
.807
4.78
.539
4.79
.489
4.82
.485
4.77
.556
4.70
.586
4.65
.779
4.78
.507
4.65
.624
Practicing
level
strong
strong
strong
strong
strong
strong
strong
strong
strong
strong
strong
4.69
Table (9) describes the descriptive statistics of knowledge distribution & exchange in
with use e-mail to share and exchange knowledge with others has the first degree with mean
(4.82) reflecting strong practicing degree, whereas the activity related with easily access
internet to collect any information needs has the second degree with mean (4.79) reflecting
strong practicing degree, whereas the activities related with intranet (internal communication
network) which enables to share and exchange knowledge with others has the third degree
with mean (4.78) reflecting strong practicing degree, whereas the activity related with the
hesitate to ask for help or advice from managers or colleagues at work has the fourth degree
with mean (4.77) whereas the activity related with enough time to interact and work with
colleagues to discuss work related issues has the fifth degree with mean (4.70) reflecting
strong practicing degree, whereas the activities related with link up incentives to the ability
of individuals to distribute and share knowledge with others and encourage informal meetings
68
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
between or among subordinates has the sixth degree with mean (4.65) reflecting strong
practicing degree, whereas the activity related with dont face difficulty in accessing any
information need in work has the seventh degree with mean (4.64) reflecting strong
practicing degree, whereas activity related with database includes a list of names and
addresses of experts to call up for consultancy when needed has the eight degree with mean
(4.45) reflecting strong practicing degree . The low standard deviations indicate the
agreement of the views of sample on knowledge distribution & exchange in the Jordan banks.
Note from these results that the dissemination and exchange of knowledge in the
Jordan banks was a high level, and perhaps the important reasons that led to this is the high
level, high practice of this activity.
Question eight: To what extent Jordan banks practices knowledge development
activity?
Table (10) Knowledge Development
#
Mean
44
45
46
47
48
I encourage subordinates to develop and improve

acquired knowledge.
When new knowledge is adopted from external
sources, I usually develop it to fit our work
environment.
I encourage subordinates to benefit from new adopted
knowledge and use it as a basis to develop and create
new knowledge.
I encourage subordinates to hold periodical meetings
to discuss the important and role of adopted
knowledge in achieving Jordan Telecom goals.
I periodically evaluate acquired knowledge to
determine its importance and role in solving
communication problem.
Total
Std.
Deviation
4.73
.549
4.71
.503
4.46
.617
4.65
.598
Practicing
level
strong
strong
strong
strong
strong
4.60
.644
4.63
Table (10) describes the descriptive statistics of knowledge development in Jordan

with encourage subordinates to develop and improve acquired knowledge has the first degree
with mean (4.73) reflecting strong practicing degree, whereas the activity related when new
knowledge is adopted from external sources, company usually develop it to fit their work
environment has the second degree with mean (4.71) reflecting strong practicing degree,
whereas the activity related with encourage subordinates to hold periodical meetings to
discuss the important and role of adopted knowledge in achieving Jordan banks goals has the
69
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
third degree with mean (4.65) reflecting strong practicing degree, whereas the activity related
with periodically evaluate acquired knowledge to determine its importance and role in
solving communication problem has the fourth degree with mean (4.60) reflecting strong
practicing degree. Finally the fifth degree was related with encourage subordinates to benefit
from new adopted knowledge and use it as a basis to develop and create new knowledge with
mean (4.46) reflecting strong practicing degree. The low standard deviations indicate the
agreement of the views of sample on knowledge development in the Jordan banks.
Through previous results, we find the Jordan banks working to develop the
knowledge acquisition as a model for the creation of knowledge.
Question nine: To what extent Jordan banks forms community of practice activity?
Table (11) Community of Practice
#
Mean
49
50
51
52
I encourage subordinates who have common interest

in a specific field to form a community (group) for
sharing and exchanging knowledge among them.
I encourage these community groups to cooperate
with external groups having the same interest.
I usually consider these community groups a
knowledge reference in their field of specialty.
I encourage these community groups to continuously
develop their knowledge.
Total
Std.
Deviation
4.04
.884
4.02
.897
4.04
.900
4.06
.858
Practicing
level
strong
strong
strong
strong
4.04
Table (11) describes the descriptive statistics of community of practice in Jordan

with encourage community groups to continuously develop their knowledge has the first
degree with mean (4.06) reflecting strong practicing degree, whereas the both activities
related encourage subordinates who have common interest in a specific field to form a
community (group) for sharing and exchanging knowledge among them and when company
consider these community groups a knowledge reference in their field of specialty has the
second degree with mean (4.04) reflecting strong practicing degree, whereas the activity
related with encourage community groups to cooperate with external groups having the same
interest has the third degree with mean (4.02) reflecting strong practicing degree. The low
standard deviations indicate the agreement of the views of sample on community of practice
in the Jordan banks.
70
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
Many confirm the importance of forming community of practice groups, and benefit
from the knowledge management process, since these groups impact on the development of
knowledge management process through experiences of knowledge.
Question Ten: To what extent Jordan Banks practices knowledge strategy activity?
Table (12) Knowledge Strategy
#
53
54
55
56
57
58
My company uses formal methods to document and

disseminate knowledge (i.g. formal meetings and
instructions).
My company uses information technology and
communication systems to document and disseminate
knowledge.
My company encourages knowledge dissemination
and exchange through individual interactions.
My company usually achieves needful qualified and
skilful personnel in knowledge through training and
development programs.
My company extends the cooperation with
knowledgeable establishments and institutions inside
and outside Jordan (i.g. universities, research centers,
international and regional organizations)
My company introduces intermediate and long range
plan to achieve effective knowledge management
administration.
Total
Mean
Std.
Deviation
4.81
.448
4.83
.433
4.86
.427
4.73
.533
Practicing
level
strong
strong
strong
strong
strong
4.78
.525
4.79
.571
strong
4.80
Table (12) describes the descriptive statistics of knowledge strategy in Jordan banks is
done in strongly degree of practicing in which general mean is (4.80).
with company encourages knowledge dissemination and exchange through individual
interactions has the first degree with mean (4.86) reflecting strong practicing degree, whereas
the activity related with company uses information technology and communication systems to
document and disseminate knowledge has the second degree with mean (4.83) reflecting
strong practicing degree, whereas the activity related with company uses formal methods to
document and disseminate knowledge formal meetings and instructions has the third degree
with mean (4.81) reflecting strong practicing degree, whereas the activity related with
company introduces intermediate and long range plan to achieve effective knowledge
management administration has the fourth degree with mean (4.79) reflecting strong
practicing degree, whereas the activity related with company extends the cooperation with
knowledgeable establishments and institutions inside and outside Jordan ( universities,
research centers, international and regional organizations) has the fifth degree with mean
(4.78) reflecting strong practicing degree, whereas the activity related with company usually
71
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
achieves needful qualified and skilful personnel in knowledge through training and
development programs has the sixth degree with mean (4.73) reflecting strong practicing
degree. The low standard deviations indicate the agreement of the views of sample on
knowledge strategy in the Jordan banks.
Previous results show a successful strategy for managing knowledge in Jordan banks.
This is not surprising, because a Jordan banks did not achieve any practice a high degree of
knowledge management activities without developing a successful knowledge management
able to consolidate and clarify the concept of knowledge management.
Table (13) Means and Std. Divisions of knowledge management dimensions:
Field
Mean
Std.
Agreement
Division degree
strong
4.57
.50811
Knowledge Creation
strong
4.27
.46732
Knowledge Acquisition
strong
4.58
.51557
Knowledge Filtering
strong
.52219
Knowledge Storage & Representation 4.44
strong
4.70
.41705
Knowledge Auditing
strong
4.50
.41918
Knowledge application
strong
4.70
.35253
Knowledge Distribution & Exchange
strong
4.63
.35624
Knowledge Development
strong
4.04
.75337
Community Of Practice
strong
4.80
.35183
Knowledge Strategy
4.54
Total
Table (13) describes the descriptive statistics of knowledge management activities in Jordan
banks is done in strongly degree of practicing in which general mean is (4.54). The results
that are mentioned in table (3) indicate that all knowledge management activities have strong
practicing degree.
4.1 Study Hypothesis Test

First Hypothesis: there is a statistically significant positive correlation between the overall
knowledge activities and its strategy. To test this relation researcher chooses Pearson's
correlation, table (4) describes the test results.
72
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
Pearson correlation
Knowledge
Creation
Knowledge
Acquisition
Knowledge
Filtering
Knowledge
Storage and
representation
Knowledge
Auditing
Knowledge
application
Knowledge
Distributing and
exchange
Knowledge
Development
Community of
Practice
Knowledge
Strategy
Knowledge
Strategy
Community of
Practice
Knowledge
Development
Knowledge
Distributing and
exchange
Knowledge
application
Knowledge
Auditing
Knowledge
Storage and
representation
Knowledge
Filtering
Knowledge
Creation
Knowledge
Acquisition
Table (4) Pearson's Correlations between Knowledge management activities
1
.566**
.718**
.496**
.645**
.534**
.565**
.810**
.512**
.774**
.609**
.778**
.459**
.646**
.570**
.757**
.825**
.606**
.740**
.611**
.825**
.734**
.680**
.398**
.649**
.547**
.760**
.700**
.716**
-.057
.176(*)
-.140
.341**
-.024
-.016
-.033
.039
.615**
.441**
.638**
.573**
.667**
.539**
.542**
.563**
.105
** Correlation is significant at the 0.01 level (2-tailed).

* Correlation is significant at the 0.05 level (2-tailed).
The results revealed that there is a statistically significant positive correlation between the
overall knowledge activities except community of practice activity that its correlation was (0.57). The reason for this weak result is due to the differences of viewpoint of the concept of
community of practice. This result is also consistent with Choo, (1998), Davenport and
Grover (2001).The table indicates that there is the deference of correlation between the
knowledge activities. These results indicate that the knowledge management methods which
conduct in Jordan banks influence of all activities because this strategy will influence to the
essential infrastructure of knowledge management.
7. Results and Recommendations

7.1 Results
1. The results for dimensions measuring knowledge management practices:(knowledge
creation(4.57),knowledge acquisition(4.27),knowledge filtering(4.58),knowledge storage and
representation(4.44),knowledge
auditing(4.70),knowledge
application(4.50),
knowledge
73
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
distribution & exchange in strongly(4.69),knowledge development(4.63), community of

practice(4.04), knowledge strategy(4.80) degree of practicing in which general .
2. The results revealed that there is a statistically significant positive correlation between the
overall knowledge activities except community of practice activity that its correlation was (0.057). The reason for this weak result is due to the differences of viewpoint of the concept of
community of practice
3. The most heads in Jordan banks their experience between (3-10 years) with percentage of
(63.3%), whereas the heads their experience (more than 10 years) with percentage of 24.5%
7.2 Recommendations
1. Researchers recommend their colleagues that are necessary to expand in concept study for
its importance in organizations support advantage.
2. Researchers recommend organizations to adapt Jordan banks approach in Knowledge
Management Concept, through practicing activities related to this concept.
3- It is necessary to held training courses to the employees who are in Jordan banks to
recognize the Knowledge Management Concept and its principles, and its importance, to
better understand their role in knowledge management in all activities.
8. Conclusion and Limitation

This study had employed data from Jordan banks belonging to the main banks sectors
in Jordan. Because a high response rate was attained, we believe that the results reflect the
actual situation regarding the knowledge management in Jordan banks. Therefore, the
findings reported here can be generalized to the larger population of banks in Jordan.
This Study attempted to validate two main dimensions: (1) Knowledge management process,
and (2) Knowledge management activities, and to recognizing the result of knowledge
management application inside the Jordan banks.
Study Constrains
The limitations that faced the researcher can be summarized as the following:
1. Through reviewing the literature, rare studies were found that developed a validated
instrument to characterize the knowledge management resources.
2. To the researcher knowledge, no studies were found that address knowledge
management characterization and measurement in Jordanian banks.
3. The study was limited to investigate knowledge management practices of Jordan
banks in Jordan.
74
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
Through reviewing the literature, rare studies were found that developed a validated
instrument to measure the knowledge management practices, and no studies were found that
address this issue in Jordan banks.
75
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
References
1. Adams , L. & Lamont, T(2003). "Knowledge Management Systems and developing
sustainable competitieve advantage". Journal of Knowledge Management. Vol., 7 No.2, pp.
142-154.
2. Al Khalili Sumaya (2006). Knowledge Management in the Jordanian Ministry of
Education Analytical Study Yarmouk University.
3. Barclay, R.O. and Murray, P. (1997), what is knowledge management?, available at
www.knowledge-atwork. Com/whatis.htm.
4. Barchan,M. (1999), Capture knowledge, Executive Excellence, September, p. 11.
6. B.Dykman. John - Managing Office Technology, May 1998 v43 n4,
7. Bennett, J. (2000), Construction The Third Way, Managing Cooperation and
Competition in Construction, Butterworth-Heinemann, Oxford.
8. Sekaran Uma, Research methods for business, "A skill-building Approach", Fourth edition
, 2003
9. Choo, C.W. (1998), The Knowing Organization: How Organizations Use Information to
Construct Meaning, Create Knowledge, and Make Decisions, Oxford University Press, New
York, NY.
10. Darroch, J. (2003), Developing a measure of knowledge management behaviors and
practices, Journal of Knowledge Management, Vol. 7 No. 5, pp. 41-54.
11. Drucker Peter F. 2004: knowledge work and knowledge society, the social
transformations of this century.
12. Desouza K C. and Yukika Awazu (2005) " Segment and destroy: the missing
capabilities of knowledge management " journal of Business Strategy vol. 26 no. 4, pp. 46-52
13. De Tienne et.al, (2001). "Knowledge Management Understanding Theory and
Developing Strategy". Competitiveness Review, 10595422, Vol. 11, Issue 1.
14. Feng et.al., (Winter 2004-2005), " Implementation of knowledge management systems
and firm performance: An Empirical Investigation" Journal of computer information systems,
pp.92-100.
15. Grover, V. and Davenport, T.H. (2001), General perspectives on knowledge
management: fostering a research agenda, Journal of Management Information Systems,
Vol. 18 No. 1, pp. 5-21.
16. Gupta, A. and McDaniel, J. (2002), Creating competitive advantage by effectively
managing knowledge management, Journal of Knowledge Management Practice, Vol. 3 No.
2, pp. 40-9.
76
ijcrb.webs.com
JULY 2013
VOL 5, NO 3
17. Turban E, Mclean, E and Wetherbe J. (2004) Information Technology for Management
4th Edition.
18. Teece, D.J. (1998), Capturing value from knowledge assets: the new economy, markets
for know-how, and intangible assets, California Management Review, Vol. 40 No. 3, pp.
55-79.
19. 49. Nonaka, I. and Takeuchi, H. (1995), the Knowledge Creating Company, Oxford
University Press, Oxford.
20. Newell, S., Robertson, M., Scarborough, H. and Swan, J. (2002), Managing Knowledge
Work, Palgrave, Basingstoke.
21. Walsh, J. and Ungston, G.R. (1991), Organizational memory, Academy of
Management Review, Vol. 16 No. 1, pp. 57-91.
22. Zack, H, (pring 1999) "Developing a Knowledge Strategy" California Management
Review, Vol. 41, No.3, pp. 125-145
77

Literature Review PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Literature Review PDF

Uploaded by

Copyright:

Available Formats

ijcrb.webs.

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

The Role of Knowledge Management in Banks Sector (Analytical

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

COPY RIGHT 2013 Institute of Interdisciplinary Business Research

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

2.2 Types of Knowledge

2.3 Knowledge Management Concepts

2.4 Knowledge Management Dimensions

COPY RIGHT 2013 Institute of Interdisciplinary Business Research

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

2.4.2. Knowledge Capture

2.4.3. Knowledge Store

2.4.4. Knowledge Dissemination

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

lack of communication skills and rapid change in Information and Communication

2.4.5. Knowledge Acquisition

2.4.6. Knowledge Filtering

2.4.7. Knowledge Auditing

auditing through the interaction of the elements of human knowledge management,

2.4.8. Knowledge Application

COPY RIGHT 2013 Institute of Interdisciplinary Business Research

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

2.4.9. Knowledge Development

2.4.10. Knowledge Strategies

COPY RIGHT 2013 Institute of Interdisciplinary Business Research

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

5.2.1 Validity Tests

Means (1- 2.5) indicates weak usage

Means (2.51-3.5) indicates average usage

Means (3.51-5) indicates strong usage

COPY RIGHT 2013 Institute of Interdisciplinary Business Research

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

6. Analysis and Results

My company concerns with developing abilities and skills of

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

My company seeks the help of external experts and specialists

Table (4) describes the descriptive statistics of knowledge acquisition activity in

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

In case of adopting successful international communication

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

My company has a comprehensive, adequate database or

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

In my department, my concern is to follow up new ideas in

related with company

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

When new methods to improve work emerged, I adopt them

Table (8) describes the descriptive statistics of knowledge application activity in

The low standard

COPY RIGHT 2013 Institute of Interdisciplinary Business Research

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

33 Our database includes a list of names and addresses of

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

I encourage subordinates to develop and improve

Table (10) describes the descriptive statistics of knowledge development in Jordan

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

I encourage subordinates who have common interest

Table (11) describes the descriptive statistics of community of practice in Jordan

COPY RIGHT 2013 Institute of Interdisciplinary Business Research

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

My company uses formal methods to document and