Impact of Knowledge Management on Innovative Work Behaviour of Employees in the Banking Sector

Abstract

This study examines the impact of Knowledge Management (KM) practices on Innovative Work Behaviour (IWB) among banking employees in Thiruvananthapuram, Kerala. It explores how different KM dimensions—Knowledge Acquisition, Knowledge Sharing, Knowledge Storage & Retention, Knowledge Application, Knowledge Creation, Collaboration & Teamwork, Organisational Culture & Support, and Technology Support for KM—influence employees' ability to innovate. The study adopts a quantitative research approach using structured questionnaires to collect data from 250 employees working in public and private sector banks. Confirmatory Factor Analysis (CFA) and Structural Equation Modelling (SEM) were employed to validate the relationships between KM practices and IWB. Statistical analysis, including ANOVA and regression models, was conducted using SPSS and Jamovi to test the hypotheses. The results reveal that Technology Support for KM, Knowledge Application, and Organisational Culture & Support are the most significant predictors of Innovative Work Behaviour. Knowledge Sharing and Collaboration & Teamwork also have a positive impact on innovation, emphasizing the importance of a knowledge-sharing culture in banking institutions. However, Knowledge Acquisition and Knowledge Creation show no significant direct effect, indicating that merely acquiring or generating knowledge does not necessarily lead to innovation unless effectively applied. The study contributes to the literature by integrating Nonaka and Takeuchi’s Knowledge Creation Theory (1995), the Resource-Based View (RBV) Theory, and the Technology Acceptance Model (TAM) to explain how knowledge management drives innovation in the banking sector. Practically, the findings suggest that banks should invest in digital KM tools, encourage knowledge-sharing cultures, and align KM strategies with business goals to foster employee innovation. The study is geographically limited to Thiruvananthapuram, Kerala, and relies on cross-sectional self-reported data. Future research should explore longitudinal effects, consider global banking institutions, and examine the role of digital transformation and AI-driven KM systems in enhancing innovation. This study underscores the strategic role of Knowledge Management in fostering employee innovation in the banking sector. By effectively implementing KM practices, banks can enhance employee creativity, improve service efficiency, and gain a competitive advantage in the evolving financial landscape.