A Thesis Submitted to the Superior College, Lahore in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy in Business Administration
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1 A DISSERTATION ON IMPACT OF KNOWLEDGE SHARING PRACTICES ON BANKS’ PERFORMANCE: A MEDIATING ROLE OF CRITICAL SUCCESS FACTORS OF KNOWLEDGE MANAGEMENT: EVIDNECE FROM BANKING SECTOR OF PAKISTAN A thesis submitted to The Superior College, Lahore in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Business Administration Submitted By: Wasim ul Rehman Roll # PDBA-13114 Session 2012-2015 Department of Business and Management Sciences Supervised By: Prof. Dr. Muhammad Ilyas Prof. Dr. Ch. Abdul Rehman 2 IMPACT OF KNOWLEDGE SHARING PRACTICES ON BANKS’ PERFORMANCE: A MEDIATING ROLE OF CRITICAL SUCCESS FACTORS OF KNOWLEDGE MANAGEMENT: EVIDENCE FROM BANKING SECTOR OF PAKISTAN By Wasim ul Rehman Roll No. PDBA – 13114 Session: 2012–2015 Thesis submitted to The Superior College, Lahore In partial fulfillment of the Requirements for the degree of Doctor of Philosophy in Business Administration Approved by: _______________________________ _________________________ Dr. Muhammad Ilyas Dr. Ch. Abdul Rehman Supervisor Co-Supervisor _______________________________ 3 Mr. Kashif Mahmood Program Manager of Research Degrees The Superior College, Lahore Faculty of Business and Management Sciences, Lahore, Pakistan DECLARATION TO BE FILLED BY THE STUDENT AT THE TIME OF SUBMISSION OF THESIS TO THE SUPERVISOR AND/OR FOR EXTERNAL EVALUATION Section 1: Particular of the Student 1.1 Full Name Wasim ul Rehman 1.2 Father’s Name Muhammad Aleem 1.3 Roll. Number PDBA – 13114 1.4 Program Doctor of Philosophy in Business Administration Section 2: Particular of the Thesis 2.1 Title Impact of Knowledge Sharing Practices on Banks’ Performance: A Mediating Role of Critical Success Factors of Knowledge Management: Evidence From Banking Sector of Pakistan 2.2 Supervisor’s Name Dr. Muhammad Ilyas 2.3 Co-Supervisor’s Name Dr. Ch.Abdul Rehman 2.4 Date of Completion November 10, 2016 4 The Superior College, Lahore Faculty of Business and Management Sciences, Lahore, Pakistan SUPERVISOR’S CERTIFICATEON THESIS SUBMITTED BY A STUDENT Section 1: Particulars of the Supervisor and Co-Supervisor 1.1 Full Name Dr. Muhammad Ilyas (Supervisor) Associate Professor and Dean of Research 1.2 Address The Superior College, Faculty of Business and Management Sciences, Lahore. 1.3 Full Name Dr. Ch. Abdul Rehman (Co-Supervisor) Chairman 1.4 Address The Superior College, Faculty of Business and Management Sciences, Lahore. Section 2: Particulars of the Student 2.1 Full Name Wasim ul Rehman 2.2 Father’s Name Muhammad Aleem 2.3 Registration Number PDBA – 13114 2.4 Program Doctor of Philosophy in Business Administration Section 3: Particulars of the Thesis 3.1 Title Impact of Knowledge Sharing Practices on Banks’ Performance: A Mediating Role of Critical Success Factors of Knowledge Management: Evidence From Banking Sector of Pakistan 3.2 Date of Completion November 10, 2016 We certify that: 5 a. The above named student has completed the cited thesis under our guidance and supervision. b. We am satisfied with quality of the student’s research work, and c. We consider it worthy of submission for external evaluation. 4.1 Supervisor’s Full Name and Dr. Muhammad Ilyas Signature Co-Supervisor’s Full Name and Dr. Ch. Abdul Rehman Signature 4.2 Date November 13, 2016 DECLARATION OF ORIGINALITY I, Wasim ul Rehman hereby solemnly declare that this project: a) is my original work, except where otherwise acknowledged in the text b) and that any additional sources of information have been duly cited c) shall not be submitted by me in future for obtaining any degree from this or other university or institution d) has incorporated the HEC Plagiarism Policy e) I understand that after submitting my thesis I may be called for viva and it is my responsibility to make myself available to attend this viva. 3.1 Student’s Full Signature 3.2 Date November 10, 2016 6 DEDICATION Words cannot explain the gratitude and respect which I have for my parents, wife and beloved son. I really dedicate this marvelous achievement of my life to those who always assisted me for the accomplished of this research dissertation. They are source of strength, inspiration and proud for me. Their inspiration towards knowledge served us as “Beacon of Light” 7 ACKNOWLEDGEMENTS This dissertation would not be completed without thanking all the wonderful people who assisted me in fulfilling the requirements for this degree. First of all, I had the great fortune to study under the supervision of Dr. Muhammad Ilyas. I am overwhelming oblige to my supervisor Dr. Muhammad Ilyas for his kind guidance, help and moral support. He has been much more than one would have expected from an advisor. He always inspired me to generate new ideas, and pointed me in the right direction. Further, I would also like to extend my gratitude to my supervisor and remaining committee members for sparing some their valuable time to read the dissertation and guided me with their valuable comments and suggestions. Special thanks go to my family and my colleagues who have without any doubts, encourage me for the completion of this research project. 8 TABLE OF CONTENTS Chapter Title Page 1 INTRODUCTION.................................................................... 1 1.1 Background of the study ................................................ 1 1.1.1 The Knowledge Management (KM) Perspective .......... 4 1.1.1.1 Definition of Knowledge ............................................... 8 1.1.1.2 Knowledge Classification .............................................. 9 1.1.2 The Intellectual Capital (IC) Perspective ....................... 11 1.1.2.1 Significance of IC at Corporate Level ........................... 13 1.1.2.2 Characteristics of Intellectual Capital ............................ 15 1.2 Research Gap ................................................................. 16 1.3 Purpose of the Study ...................................................... 18 1.4 Objectives of the Study .................................................. 19 1.5 Research Questions ........................................................ 20 1.6 Development of Proposed Conceptual Model ............... 20 1.7 Development of the Hypotheses .................................... 22 1.8 Significance of the Study ............................................... 24 1.9 Delimitations and Scope ................................................ 26 1.10 Definition of Variables .................................................. 27 A Knowledge Sharing Practices ........................................ 27 B Knowledge Management Strategy ................................. 29 C Knowledge Infrastructure Capability ............................. 29 D Knowledge Process Capability ...................................... 30 E Intellectual Capital ......................................................... 30 1.11 Organization of the Study .............................................. 31 9 2 EMPIRICAL LITERATURE REVIEW ........................................... 33 2.1 Knowledge-based view (KBV) and Performance.......... 33 2.2 Knowledge Management and Performance ................... 36 2.3 Linking Knowledge Management with Employee Knowledge ..................................................................... 38 2.4 Knowledge Management a Source of Competitive Advantage ...................................................................... 39 2.5 Knowledge Sharing Practices and Performance ............ 40 2.6 Knowledge Sharing and Innovation............................... 44 2.7 Critical Success Factors of Knowledge Management ... 48 2.7.1 Knowledge Management Strategy ................................. 48 2.7.2 Knowledge Management Capabilities ........................... 51 2.7.2.1 Knowledge Infrastructure Capability / Knowledge Management Enablers .................................................... 52 2.7.2.2 Knowledge Process Capability ...................................... 54 2.7.3 Intellectual Capital (IC) ................................................. 57 2.7.3.1 Human Capital ............................................................... 58 2.7.3.2 Structural Capital ........................................................... 60 2.7.3.3 Relational Capital........................................................... 61 3 EMPIRICAL LITERATURE REVIEW ........................................... 64 3.1 Knowledge Sharing Practices (Tacit and Explicit) ........ 64 3.1.1 Explicit KS Practices and Firm’s Performance ............. 65 3.1.2 Tacit KS Practices and Firm’s Performance .................. 66 3.2 Critical Successful Factors of KM for KS-driven Performance ................................................................... 66 3.2.1 Knowledge Management Strategy and Performance ..... 66 3.2.2 Knowledge Management Capabilities ........................... 71 10 3.2.2.1 Knowledge Infrastructure Capability / Knowledge Management Enablers and Performance ....................... 72 3.2.2.1.1 Technology .................................................................... 73 3.2.2.1.2 Organizational Culture ................................................... 74 3.2.2.1.3 Organizational Structure ................................................ 77 3.2.2.2 Knowledge Process Capability and Performance .......... 78 3.2.2.2.1 Knowledge Acquisition Process .................................... 80 3.2.2.2.2 Knowledge Conversion Process .................................... 82 3.2.2.2.3 Knowledge Application Process .................................... 83 3.2.2.2.4 Knowledge Protection ...................................................