Effects of Knowledge Creation on Employee Commitment Among Tier One Banks in the North Rift Region, Kenya: The Moderating effect of Organizational Culture
Main Article Content
Keywords
Knowledge creation, employee commitment, Tier One Banks
Abstract
Research has shown that, in both public and private organizations, knowledge creation influences employee commitment. Based on the limited available information in Kenya, this study evaluated the moderating effects of organizational culture on the effects of knowledge creation on employee commitment among tier one banks in the North Rift Region, Kenya. Organisational epistemology served as its foundation. The study used an explanatory research design and post positivist philosophy as a guide. The study targeted 774 employees of Tier 1 banks in the North Rift Region. The study utilized Yamane (1967) sample size formula to arrive at 264 employees. Stratified, proportional and simple random selection procedures were applied during sampling. The study employed a structured questionnaire to compile data. Descriptive and inferential statistics were used to analyse the quantitative data. Results indicated a positive significant relationship between Knowledge creation and Employee Commitment (r =.782 p = 0.000 <.01), Organizational Culture and Employee Commitment (r =.779 p = 0.000 <.01) as well as Knowledge creation and Organizational Culture (r =.758 p = 0.000 <.01). Also, knowledge creation had a significant effect on employee commitment (β =.344; p=.000 < 0.05). Lastly, the study findings demonstrated that, among tier one banks organizational culture significantly moderated knowledge creation and employee commitment (β6=.029, p<0.05). This indicates that organizational culture is key in promoting knowledge creation leading to higher levels of employee commitment. The study recommended that it is imperative for organizations to have policies that provide guidance on knowledge creation for their employees and implement organizational culture initiatives that yield quantifiable results.
References
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Faeq, D. K., & Ismael, Z. N. (2022). Organizational culture as a mediator between employee dissatisfaction and turnover intention. International Journal of English Literature and Social Sciences, 7(5), 95-108.
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Iqbal, A. (2021). Innovation speed and quality in higher education institutions: the role of knowledge management enablers and knowledge sharing process. Journal of Knowledge Management, 25(9), 2334-2360.
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Meyer, J. P., & Allen, N. J. (1997). Commitment in the workplace: Theory, research, and application. Sage publications.
Mohamud, H. A. (2018). The impact of corporate social responsibility practice on financial performance of banking industry: Case study: East African commercial Banks. Journal of Economics, Management and Trade, 21(12), 1-7.
Mohd Rasdi, R., & Tangaraja, G. (2022). Knowledge-sharing behaviour in public service organisations: determinants and the roles of affective commitment and normative commitment. European Journal of Training and Development, 46(3/4), 337-355.
Najeeb, M. M., Hanif, M. I., & Hamid, A. B. A. (2018). The impact of Knowledge Management (KM) and Organizational Commitment (OC) on employee job satisfaction (EJS) in banking sector of Pakistan. International Journal of Management Excellence (ISSN: 2292-1648), 11(1), 1476-1491.
Nayak, S., Bhatnagar, J., Budhwar, P., & Mukherjee, J. (2022). Commitment based human resources practices and knowledge creation in ambidextrous organizations: A moderated mediation study on expatriates working in India. Thunderbird International Business Review, 64(5), 511-529.
Nizam, K., & Hameed, S. (2023). The impact of knowledge sharing on job performance in banking sector of pakistan–mediating role of affective commitment. Pakistan Journal of Social Sciences, 43(1), 25-38.
Nonaka, I., & Von Krogh, G. (2009). Perspective—Tacit knowledge and knowledge conversion: Controversy and advancement in organizational knowledge creation theory. Organization science, 20(3), 635-652.
Nonaka, L., Takeuchi, H., & Umemoto, K. (1996). A theory of organizational knowledge creation. International journal of technology Management, 11(7-8), 833-845.
Novitasari, D., Supriatna, H., Asbari, M., Nugroho, Y. A., & Nadeak, M. (2021). Exploring the impact of trust in leader and knowledge sharing on employee innovation. International Journal of Social and Management Studies, 2(3), 47-62.
Pietruszka-Ortyl, A. (2019). The impact of organizational culture for company's innovation strategy.
Rehman, K. U., Hafeez, I., Aslam, F., Maitlo, Q., & Syed, A. R. (2020). The mediating role of trust and organizational commitment in the relationship between strategic human resource management and knowledge sharing. Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies), 13(4),
565-586.
Reich, A., Bożek, A., Janiszewska, K., & Szepietowski, J. C. (2017). 12‐Item Pruritus Severity Scale: development and validation of new itch severity questionnaire. BioMed research international, 2017(1), 3896423.
Rizki, M., Parashakti, R. D., & Saragih, L. (2019). The effect of transformational leadership and organizational culture towards employees’ innovative behaviour and performance. International Journal of Economics and Business Administration, 7(1), 227-239.
Saldana, J. (2011). Fundamentals of qualitative research. Oxford university press.
Shikuku, W., Manikam, K., Adeniyi, J. I., Ndua, E. W., & Richard, B. P. (2024). Modern Workplace Dynamics. Cari Journals USA LLC.
Shrestha, N. (2021). Factor analysis as a tool for survey analysis. American journal of Applied Mathematics and statistics, 9(1), 4-11.
Tabachnick, B. G., & Fidell, L. S. (2007). Experimental designs using ANOVA (Vol. 724). Belmont, CA: Thomson/Brooks/Cole.
Taylor, G. (2013). Implementing and maintaining a knowledge sharing culture via knowledge management teams: A shared leadership approach. Journal of Organizational Culture, Communications and Conflict, 17(1), 69.
Von Krogh, G., & Roos, J. (1995). A perspective on knowledge, competence and strategy. Personnel review, 24(3), 56-76.
Zayed, N. M., Edeh, F. O., Islam, K. M. A., Nitsenko, V., Polova, O., & Khaietska, O. (2022). Utilization of Knowledge Management as Business Resilience Strategy for Microentrepreneurs in Post-COVID-19 Economy. Sustainability, 14(23), 15789.
Ahmad, F., Hossain, M. B., Mustafa, K., Ejaz, F., Khawaja, K. F., & Dunay, A. (2023). Green HRM practices and knowledge sharing improve environmental performance by raising employee commitment to the environment. Sustainability, 15(6), 5040.
Ahmed, T., Khan, M. S., Thitivesa, D., Siraphatthada, Y., & Phumdara, T. (2020). Impact of employees engagement and knowledge sharing on organizational performance: Study of HR challenges in COVID-19 pandemic. Human Systems Management, 39(4), 589-601.
Al-Omoush, K. S., Simón-Moya, V., & Sendra-García, J. (2020). The impact of social capital and collaborative knowledge creation on e-business proactiveness and organizational agility in responding to the COVID-19 crisis. Journal of Innovation & Knowledge, 5(4), 279-288.
Arsawan, I., Kariati, N. M., Shchokina, Y., Prayustika, P. A., Rustiarini, N. W., & Koval, V. (2022). Invigorating employee’s innovative work behavior: Exploring the sequential mediating role of organizational commitment and knowledge sharing. Business Theory & Practice, 23(1), 117-130.
Arsawan, I., Wirga, I. W., Rajiani, I., & Suryantini, N. P. S. (2020). Harnessing knowledge sharing practice to enhance innovative work behavior: the paradox of social exchange theory. Polish Journal of Management Studies, 21.
Asbari, M., Novitasari, D., Purwanto, A., Fahmi, K., & Setiawan, T. (2021). Self-leadership to innovation: The role of knowledge sharing. International Journal of Social and Management Studies, 2(5), 21-36.
Bhatti, S. H., Vorobyev, D., Zakariya, R., & Christofi, M. (2021). Social capital, knowledge sharing, work meaningfulness and creativity: evidence from the Pakistani pharmaceutical industry. Journal of Intellectual Capital, 22(2), 243-259.
Chin, T., Wang, S., & Rowley, C. (2021). Polychronic knowledge creation in cross-border business models: a sea-like heuristic metaphor. Journal of Knowledge Management, 25(1), 1-22.
Creswell, J. W., Klassen, A. C., Plano Clark, V. L., & Smith, K. C. (2011). Best practices for mixed methods research in the health sciences. Bethesda (Maryland): National Institutes of Health, 2013, 541-545.
Ebikeseye, B., & Dickson, R. S. (2018). Employee commitment to work as an ingredient for service delivery of selected firms in Bayelsa State. IIARD International Journal of Economics and Business Management, 4(1), 80-92.
Faeq, D. K., & Ismael, Z. N. (2022). Organizational culture as a mediator between employee dissatisfaction and turnover intention. International Journal of English Literature and Social Sciences, 7(5), 95-108.
Faliza, N. (2023). Can Organizational Culture Encourage Islamic Banking Performance?: The Role of Organizational Commitment as Mediation. International Journal of Professional Business Review, 8(6), e02307-e02307.
Fayda-Kinik, F. S. (2022). The role of organisational commitment in knowledge sharing amongst academics: an insight into the critical perspectives for higher education. International Journal of Educational Management, 36(2), 179-193.
Field, A. P. (2005). Is the meta-analysis of correlation coefficients accurate when population correlations vary?. Psychological methods, 10(4), 444.
Goswami, A. K., & Agrawal, R. K. (2020). Explicating the influence of shared goals and hope on knowledge sharing and knowledge creation in an emerging economic context. Journal of Knowledge Management, 24(2), 172-195.
Hyun, C. C., Wijayanti, L. M., Asbari, M., Purwanto, A., Santoso, P. B., Igak, W., ... & Pramono, R. (2020). Implementation of contextual teaching and learning (CTL) to improve the concept and practice of love for faith-learning integration. International Journal of Control and Automation, 13(1), 365-383.
Iddy, J. J., & Alon, I. (2019). Knowledge management in franchising: a research agenda. Journal of Knowledge Management, 23(4), 763-785.
Iqbal, A. (2021). Innovation speed and quality in higher education institutions: the role of knowledge management enablers and knowledge sharing process. Journal of Knowledge Management, 25(9), 2334-2360.
Jiang, F., Liu, L. X., & Li, J. (2023). From horizontal knowledge sharing to vertical knowledge transfer: The role of boundary-spanning commitment in international joint ventures. Journal of International Business Studies, 54(1), 182-202.
Kaffashan Kakhki, M., Namdar Joyame, E., Malakooti Asl, N., & Harati, H. (2023). Modeling the Effect of Trust on Librarians’ Knowledge Sharing: Assessing the Effect of Organizational Intelligence and Organization-Based Self-
Esteem as Mediators. Public Library Quarterly, 42(1), 31-52.
Laila, F., Irawanto, D. W., & Susilowati, C. (2022). The effect of organizational culture and transformational leadership style on organizational commitment with knowledge management practices as mediating variables. International Journal of Research in Business and Social Science (2147-4478), 11(5), 218-224
Marco-Lajara, B., Claver-Cortés, E., Úbeda-García, M., García-Lillo, F., & Zaragoza-Sáez, P. C. (2019). The role of internal knowledge generation and external knowledge acquisition in tourist districts. Journal of Business Research, 101, 767-776.
Meyer, J. P., & Allen, N. J. (1997). Commitment in the workplace: Theory, research, and application. Sage publications.
Mohamud, H. A. (2018). The impact of corporate social responsibility practice on financial performance of banking industry: Case study: East African commercial Banks. Journal of Economics, Management and Trade, 21(12), 1-7.
Mohd Rasdi, R., & Tangaraja, G. (2022). Knowledge-sharing behaviour in public service organisations: determinants and the roles of affective commitment and normative commitment. European Journal of Training and Development, 46(3/4), 337-355.
Najeeb, M. M., Hanif, M. I., & Hamid, A. B. A. (2018). The impact of Knowledge Management (KM) and Organizational Commitment (OC) on employee job satisfaction (EJS) in banking sector of Pakistan. International Journal of Management Excellence (ISSN: 2292-1648), 11(1), 1476-1491.
Nayak, S., Bhatnagar, J., Budhwar, P., & Mukherjee, J. (2022). Commitment based human resources practices and knowledge creation in ambidextrous organizations: A moderated mediation study on expatriates working in India. Thunderbird International Business Review, 64(5), 511-529.
Nizam, K., & Hameed, S. (2023). The impact of knowledge sharing on job performance in banking sector of pakistan–mediating role of affective commitment. Pakistan Journal of Social Sciences, 43(1), 25-38.
Nonaka, I., & Von Krogh, G. (2009). Perspective—Tacit knowledge and knowledge conversion: Controversy and advancement in organizational knowledge creation theory. Organization science, 20(3), 635-652.
Nonaka, L., Takeuchi, H., & Umemoto, K. (1996). A theory of organizational knowledge creation. International journal of technology Management, 11(7-8), 833-845.
Novitasari, D., Supriatna, H., Asbari, M., Nugroho, Y. A., & Nadeak, M. (2021). Exploring the impact of trust in leader and knowledge sharing on employee innovation. International Journal of Social and Management Studies, 2(3), 47-62.
Pietruszka-Ortyl, A. (2019). The impact of organizational culture for company's innovation strategy.
Rehman, K. U., Hafeez, I., Aslam, F., Maitlo, Q., & Syed, A. R. (2020). The mediating role of trust and organizational commitment in the relationship between strategic human resource management and knowledge sharing. Interdisciplinary Journal of Management Studies (Formerly known as Iranian Journal of Management Studies), 13(4),
565-586.
Reich, A., Bożek, A., Janiszewska, K., & Szepietowski, J. C. (2017). 12‐Item Pruritus Severity Scale: development and validation of new itch severity questionnaire. BioMed research international, 2017(1), 3896423.
Rizki, M., Parashakti, R. D., & Saragih, L. (2019). The effect of transformational leadership and organizational culture towards employees’ innovative behaviour and performance. International Journal of Economics and Business Administration, 7(1), 227-239.
Saldana, J. (2011). Fundamentals of qualitative research. Oxford university press.
Shikuku, W., Manikam, K., Adeniyi, J. I., Ndua, E. W., & Richard, B. P. (2024). Modern Workplace Dynamics. Cari Journals USA LLC.
Shrestha, N. (2021). Factor analysis as a tool for survey analysis. American journal of Applied Mathematics and statistics, 9(1), 4-11.
Tabachnick, B. G., & Fidell, L. S. (2007). Experimental designs using ANOVA (Vol. 724). Belmont, CA: Thomson/Brooks/Cole.
Taylor, G. (2013). Implementing and maintaining a knowledge sharing culture via knowledge management teams: A shared leadership approach. Journal of Organizational Culture, Communications and Conflict, 17(1), 69.
Von Krogh, G., & Roos, J. (1995). A perspective on knowledge, competence and strategy. Personnel review, 24(3), 56-76.
Zayed, N. M., Edeh, F. O., Islam, K. M. A., Nitsenko, V., Polova, O., & Khaietska, O. (2022). Utilization of Knowledge Management as Business Resilience Strategy for Microentrepreneurs in Post-COVID-19 Economy. Sustainability, 14(23), 15789.
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Published
Jul 24, 2024
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How to Cite
Ngugi , J., Mbaraka , R., & Mwangi , D. K. (2024). Effects of Knowledge Creation on Employee Commitment Among Tier One Banks in the North Rift Region, Kenya: The Moderating effect of Organizational Culture. Journal of Business, Economics and Management Research Studies, 2(2), 104–129. https://doi.org/10.69897/jobemrs.v2i2.131
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Author Biographies
James Ngugi , Department of Management Science and Entrepreneurship, Moi University, P.O. Box 3900-30100, Kesses, Eldoret, Kenya
Department of Management Science and Entrepreneurship, Moi University, Eldoret, Kenya
Razia Mbaraka , Department of Management Science and Entrepreneurship, Moi University, P.O. Box 3900-30100, Kesses, Eldoret, Kenya
Department of Management Science and Entrepreneurship, Moi University, Eldoret, Kenya
David Kungu Mwangi , Department of Environmental Health & Disaster Risk Management, Moi University, P.O. Box 3900-30100, Kesses, Eldoret, Kenya
Department of Environmental Health & Disaster Risk Management, Moi University, Eldoret, Kenya