Do Knowledge Management and Competitive Advantage affect Ethiopian Commercial Banks Performance?

Abstract

Understanding plays a vital part in performing arts. When competitive advantage is used as a mediator, present empirical research particularly aims was to investigate the causes and effects of management of knowledge perspectives in Ethiopian commercial banks. The study focused on a sample of 383 bank account holders in the Ethiopian town of Dilla. To choose a sample, a straightforward random sampling procedure was used. The KMO test was used for reliability and data adequacy, the CFA test was utilised for validity and hypothesis testing, and SEM was used for mediation and model fitness. The sampled firm's organisational performance and knowledge management procedures were found to be moderate, as supported by the results. This suggests that the businesses should continue to improve their knowledge management practices in order to improve their organisational efficiency. Due to this, the study comes to the conclusion that, when combined with competitive advantage, acquiring knowledge, sharing, retention, and utilisation substantially foresee the organisational performances of commercially owned banks in Ethiopia. As a result, commercial banks should pay careful attention to these types of knowledge management practices to enhance their bank performance.