Influence of Knowledge Management Process on Performance of Financial Institutions in Mogadishu, Somalia

Abstract

The study of organizational effectiveness is given a lot of attention in business. The phenomena, however, is complex and has several dimensions. Execution might be described as a company's competence to produce beneficial results and behave appropriately. For many firms, effective management of intangible knowledge resources is equally as crucial as efficient use of real assets and natural resources. Knowledge-based companies hold the view that market domination requires disruptive knowledge. Because earlier studies did not concentrate on certain facets of the capabilities of the knowledge managing process, the vast implications that knowledge management has on firm’s performance have gone largely unappreciated. Although some firms have put knowledge management methods in place, there haven't been any measurable performance increases, and the adoption of knowledge management process in Somali financial sector was missing phenomena in the literature. The general objective of this study was to “determine influence of knowledge management process on performance of financial Institutions in Mogadishu, Somalia and to investigate whether organizational learning culture moderates the relationship between knowledge management and the performance of Financial Institutions in Mogadishu, Somalia”. The study's particular objectives were to explore how knowledge conversion, sharing and use affect performance financial institutions in Mogadishu, Somalia, and moderating effect organizational culture on this relationship. The study used a correlational cross-sectional survey approach to accomplish these objectives. In Somalia, 244 financial institutions staff took part in the survey for this research. The respondents were drawn from five each organization's five key functional areas. A questionnaire instrument was used to collect primary data. The survey data were reviewed using descriptive and inferential statistics to evaluate hypotheses. The performance of financial institutions in Mogadishu was shown to rise as a result of knowledge conversion and utilization (Wald = 4.519, df = 1, p=0.0340.05, and OR = 1.909, respectively). Conversely, knowledge sharing had no significant influence on performance (OR=1.265, Wald = 0.086, df=1, p=0.347>0.05). It has been shown that knowledge management improves financial institution performance in Mogadishu Somalia (OR=1.419) without any significant moderating influence from organizational culture (Wald = 0.331, df = 1, p = 0.565>0.05). The study's conclusions might be used to other firms that heavily depend on information to create knowledge management policies and encourage knowledge management process capabilities. According to the study, knowledge management techniques like knowledge use and conversion may be used to monitor, enhance, and grow an organization's performance. Further researchers were recommended on other dimensions, and benchmark cases for competing firms.