INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS The Role of Knowledge Management in Banks Sector (Analytical Study-Jordan

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

COPY RIGHT © 2013 Institute of Interdisciplinary Business Research

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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 α < 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

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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,

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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 corporation‟s 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:

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(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,

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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.

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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.

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(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

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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.

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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: Cronbach’s Alpha Coefficient

Cronbach‟s 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 Cronbach‟s 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

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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 Std.

Deviation Practicing

level

1 My company concerns with developing abilities and skills of

subordinates 4.61 .794

strong

2 Renewal and creation are very important for my job. 4.74 .556 strong

3 My company concerns with new ideas, thought and suggestions

proposed by employees 4.63 .694

strong

4 My Company cares for motivating and rewarding creative

persons (employees) 4.55 .763

strong

5 My Company encourages collective work and subordinates

cooperation instead of competition 4.66 .620

strong

6 My company encourages employees to seek new ideas from all

possible sources (i.e. Internally and Externally) 4.58 .681

strong

7 My company gives its employees the freedom to organize and

carry out their job by methods and means they believe

appropriate.

4.36 .742

strong

8 My company has a strong commitment to new ideas because of

its important role in achieving innovation. 4.60 .729

strong

9 My company's information system facilitates ideas sharing

between or among employees to achieve innovation 4.45 .934

strong

Total 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

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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

Std. Deviation

Practicing level

10 My company seeks the help of external experts and specialists

to transfer their knowledge and experience to our personnel. 4.71 .664

strong

11 My company is concerned in participating in conferences and

workshops inside and outside Jordan as a method of

obtaining knowledge.

4.73 .597

strong

12 My company encourages personnel to join training programs

inside and outside Jordan to gain knowledge in their fields. 4.51 .820

strong

13 My company seeks to qualify its personnel through

scholarships award to gain knowledge of modern technology

in the field of communication.

2.90 1.491

weak

14 My company encourages personnel to benefit from the

experience of successful international practices and

knowledge to adopt them.

4.50 .854

strong

Total 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

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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

Std. Deviation

Practicing level

15 In case of adopting successful international communication

practices, my company modifies these practices to be suitable

for Jordanian conditions and environment.

4.63 .651

strong

16 My company filters obtained knowledge and determines the

most important part to be distributed and exchanged between

personnel.

4.58 .636

strong

17 In my company each department determines important

knowledge in its field to be distributed and exchanged

between personnel.

4.58 .712

strong

18 When new knowledge is created my company filter (adjust) it

to be suitable for work environment. 4.51 .716

strong

Total 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

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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

# Mean Std. Deviation

Practicing level

19 My company has a comprehensive, adequate database or

(knowledge base) which is available for all personnel. 4.36 .722

strong

20 My Company documents new acquired knowledge for each

accomplished project. 4.65 .656

strong

21 I document problems we faced and methods used to solve these

problems for future benefits. 4.69 .612

strong

22 In each department, we document experts’ knowledge

and organize it as stories of success to be used as basis for

problem solving.

4.07 .906

strong

Total 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.

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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

# Mean

Std. Deviation

Practicing level

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

my work and transfer it to my subordinates. 4.81 .559 strong

24 In my department, I regularly review work processes and

procedures to ensure up-to-date ness. 4.79 .458 strong

25 I always follow up to ensure that my subordinates review

methods gained during training courses. 4.74 .516 strong

26 My company continuously concerns in training courses to

develop personnel skills and knowledge. 4.63 .673 strong

27 I regularly review and modify database in my department 4.62 .642 strong 28 I regularly compare my department’s performance with

other departments to be aware of my weakness points. 4.63 .753 strong

Total 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 department‟s 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

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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

Std. Deviation

Practicing level

29 When new methods to improve work emerged, I adopt them

instantly. 4.71 .555

strong

30 I treat all information I receive from any source (internal or

external) and benefit from it. 4.63 .581

strong

31 Typically, I don’t face difficulty in applying work methods

that I have been trained on. 4.19 .600

strong

32 I always follow up to ensure that my subordinates use and

apply methods gained during training courses. 4.48 .765

strong

Total 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.

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Question Seven: To what extent Jordan banks practices knowledge distribution and

exchange activity?

Table (9) Knowledge Distribution & Exchange

# Mean

Std. Deviation

Practicing level

33 Our database includes a list of names and addresses of

experts to call up for consultancy when needed. 4.45 .694

strong

34 I don’t face difficulty in accessing any information I need

in my work. 4.64 .659

strong

35 I foster and promote training courses to develop

employees’ skills in sharing and exchanging new ideas. 4.58 .807

strong

36 I have an intranet (internal communication network)

which enables me to share and exchange knowledge with

others.

4.78 .539

strong

37 I can easily access internet to collect any information I

need. 4.79 .489

strong

38 I use e-mail to share and exchange knowledge with

others. 4.82 .485

strong

39 I don’t hesitate to ask for help or advice from my

managers or colleagues at work. 4.77 .556

strong

40 I have enough time to interact and work with my

colleagues to discuss work related issues. 4.70 .586

strong

41 I link up incentives to the ability of individuals to

distribute and share knowledge with others. 4.65 .779

strong

42 I encourage group work as it enables me to share and

exchange knowledge with others. 4.78 .507

strong

43 I encourage informal meetings between or among

subordinates. 4.65 .624

strong

Total 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

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between or among subordinates has the sixth degree with mean (4.65) reflecting strong

practicing degree, whereas the activity related with don‟t 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 Std.


level

44 I encourage subordinates to develop and improve

acquired knowledge. 4.73 .549

strong

45 When new knowledge is adopted from external

sources, I usually develop it to fit our work

environment.

4.71 .503

strong

46 I encourage subordinates to benefit from new adopted

knowledge and use it as a basis to develop and create

new knowledge.

4.46 .617

strong

47 I encourage subordinates to hold periodical meetings

to discuss the important and role of adopted

knowledge in achieving Jordan Telecom goals.

4.65 .598

strong

48 I periodically evaluate acquired knowledge to

determine its importance and role in solving

communication problem.

4.60 .644

strong

Total 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

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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 Std.


level

49 I encourage subordinates who have common interest

in a specific field to form a community (group) for

sharing and exchanging knowledge among them.

4.04 .884

strong

50 I encourage these community groups to cooperate

with external groups having the same interest. 4.02 .897

strong

51 I usually consider these community groups a

knowledge reference in their field of specialty. 4.04 .900

strong

52 I encourage these community groups to continuously

develop their knowledge. 4.06 .858

strong

Total 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.

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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

#

Mean

Std.

Deviation

Practicing

level

53 My company uses formal methods to document and

disseminate knowledge (i.g. formal meetings and

instructions).

4.81 .448

strong

54 My company uses information technology and

communication systems to document and disseminate

knowledge.

4.83 .433

strong

55 My company encourages knowledge dissemination

and exchange through individual interactions. 4.86 .427

strong

56 My company usually achieves needful qualified and

skilful personnel in knowledge through training and

development programs.

4.73 .533

strong

57 My company extends the cooperation with

knowledgeable establishments and institutions inside

and outside Jordan (i.g. universities, research centers,

international and regional organizations)

4.78 .525

strong

58 My company introduces intermediate and long range

plan to achieve effective knowledge management

administration.

4.79 .571

strong

Total 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

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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.

Division

Agreement

degree

Knowledge Creation 4.57 .50811 strong

Knowledge Acquisition 4.27 .46732 strong

Knowledge Filtering 4.58 .51557 strong

Knowledge Storage & Representation 4.44 .52219 strong

Knowledge Auditing 4.70 .41705 strong

Knowledge application 4.50 .41918 strong

Knowledge Distribution & Exchange 4.70 .35253 strong

Knowledge Development 4.63 .35624 strong

Community Of Practice 4.04 .75337 strong

Knowledge Strategy 4.80 .35183 strong

Total 4.54

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.

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Table (4) Pearson's Correlations between Knowledge management activities

Kn

ow

ledg

e

Cre

atio

n

Kn

ow

ledg

e

Acq

uis

itio

n

Kn

ow

ledg

e

Fil

teri

ng

Kn

ow

ledg

e

Sto

rage

and

rep

rese

nta

tion

Kn

ow

ledg

e

Au

dit

ing

Kn

ow

ledg

e

app

lica

tio

n

Kn

ow

ledg

e

Dis

trib

uti

ng

and

exch

ange

Kn

ow

ledg

e

Dev

elop

men

t

Co

mm

unit

y o

f

Pra

ctic

e

Kn

ow

ledg

e

Str

ateg

y

Pea

rso

n c

orr

elat

ion

Knowledge

Creation 1

Knowledge

Acquisition .566** 1

Knowledge

Filtering .718** .496** 1

Knowledge

Storage and

representation

.645** .534** .565** 1

Knowledge

Auditing .810** .512** .774** .609** 1

Knowledge

application .778** .459** .646** .570** .757** 1

Knowledge

Distributing and

exchange

.825** .606** .740** .611** .825** .734** 1

Knowledge

Development .680** .398** .649** .547** .760** .700** .716** 1

Community of

Practice -.057 .176(*) -.140 .341** -.024 -.016 -.033 .039 1

Knowledge

Strategy .615** .441** .638** .573** .667** .539** .542** .563** .105 1

** 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

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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.

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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.

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS The Role of Knowledge Management in Banks Sector (Analytical Study-Jordan

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