Empirical Investigation of Knowledge Management on Organizational Performance: Evidence from Financial Industry of Sri Lanka

Abstract

Even though the world of work has been energized by the growing aspects of the arena of the information technology, yet it is believed to be the focus and the emphasis of the knowledge factors has increasingly proven its swelling importance to every individual, organization, and to every nation. Believing this, the current organizations strive to put a valuable emphasis on the knowledge resources as a means of nurturing their individuals’ performance with the view of enhancing the overall organizational performance. The present study aims to explore how the knowledge management drives on the organizational performance especially with special reference to the financial institutions in Sri Lanka. Researcher adapted epistemological philosophy with deductive and explanatory approach and conducted to find the impact between Knowledge Management and organization performance by using survey strategy. This research was quantitative in nature which was data collected through the questionnaires from the management of top 12 financial companies in the finance industry by using stratified sampling method and analyzed using correlational and regression analysis techniques. The findings revealed that there is a significant positive relationship between knowledge management and the organizational performance of the organizations in finance industry in Sri Lanka. Thus, the study would provide a valuable insight for every organization especially the organizations in the financial industry to re-think about the effective ways that can ensure the knowledge management in their organization.