THE EFFECTS OF THE SCIENCE CREATION PROCESS ON ORGANIZATIONAL PERFORMANCE: A STUDY OF THE THAI BANKING INDUSTRY. The purpose of this study is to examine the effects of knowledge creation on organizational performance.
LIST OF TABLES
LIST OF TABLES (cont.)
LIST OF ABRREVIATIONS
INTRODUCTION
- Background of the study
- Statement of purpose
- Research questions
- Research objectives
- Scope of the study
- Contribution of the study
- Structure of the study
- provides the literature reviews on knowledge creation concept
- Chapter 4 presents the quantitative results of banking employees in Thailand. Pilot data have been analyzed before performing analysis of 400 respondents
- Chapter 5 summarizes the findings from this study. The findings are discussed on common practices of knowledge creation process in Thai banks and the
The findings from this study can increase the understanding of the effects of the knowledge creation process in the Thai banking sector. The third section examines previous research on knowledge creation processes and organizational performance, together with research findings in different countries.
LITERATURE REVIEWS
What is knowledge?
Types of knowledge
- Tacit knowledge
- Explicit knowledge
- Internalized knowledge
- Procedural knowledge
- Encapsulated knowledge
However, it is difficult to distinguish between explicit knowledge (know-what and know-why) and procedural knowledge (know-how). In addition to tacit and explicit knowledge, Van den Berg (2013) proposes another classification of knowledge, called encapsulated knowledge.
Knowledge creation
In different perspectives, it can be grouped into local or global knowledge (Jensen, Johnson, Lorenz, & Lundvall 2007). To form knowledge about individuals, it needs social interaction which can be at different levels.
SECI model
- Socialization
- Externalization
- Combination
- Internalization
Combination refers to the process of combining different explicit knowledge and converting it into more complex and structured sets of explicit knowledge (Nonaka et al., 2000). The final stage is internalization, which converts explicit knowledge into tacit knowledge using the concept of learning by doing.
Knowledge creation measurement
What is important is the movement of the knowledge creation process, which is a spiral shape and moves up along the ontological level (individual, group, organization). The output-oriented goals determine the immediate product of the knowledge creation process; for example spoken idea from brainstorming.
Impacts of external factors to knowledge creation
It needs to be reformulated and should have management practices to increase the efficiency of knowledge creation (Andreeva & Ikhilchik, 2011). To successfully apply the SECI model in the organization, it is necessary to deeply understand each element of the knowledge creation process, the definition behind it.
Impacts of internal factors to knowledge creation
Awareness of these aspects can enhance the understanding of knowledge creation, including process involvement and impact on the organization (Easa & Fincham, 2012). Regarding a culture of employee involvement, a study by Memon, Syed, and Arain (2017) indicates that empowerment, capacity development, and team orientation are the factors that positively influence the knowledge creation process.
Organizational performance
The expected findings of research are the ways to improve organizational performance because it is the key of organization. In short, there are several frameworks for measuring organizational performance and each framework focuses on different perspectives.
Organizational performance measurement
In other words, customer performance is evidence of how good the organization's processes, decisions and actions are. This perspective is abstract but significant as it shows the improvement of the image and goodwill of the organization.
Knowledge creation and organizational performance
- Knowledge creation and its applications in organizations
They also note that the knowledge creation process is a fundamental aspect of organizational learning (Berraies & Chaher, 2014). Therefore, there is room for further study of the knowledge creation process and its effects on organizational performance in this area.
Research hypotheses
Therefore, it is clearly seen that the knowledge creation process is directly related to the business process perspective. In this case, this is where the knowledge creation process helps create intellectual capital for the organization.
RESEARCH METHODOLOGY
- Research methodology
- Data collection
- Measurement of variables
- Research community
- BANGKOK BANK PUBLIC COMPANY LIMITED 2. BANK OF AYUDHYA PUBLIC COMPANY LIMITED
- INDUSTRIAL AND COMMERCIAL BANK OF CHINA (THAI) PUBLIC COMPANY LIMITED
- KASIKORN BANK PUBLIC COMPANY LIMITED 6. KIATNAKIN BANK PUBLIC COMPANY LIMITED
- LAND AND HOUSES BANK PUBLIC COMPANY LIMITED 9. SIAM COMMERCIAL BANK PUBLIC COMPANY LIMITED
- STANDARD CHARTERED BANK (THAI) PUBLIC COMPANY LIMITED
- THANACHART BANK PUBLIC COMPANY LIMITED 12. TISCO BANK PUBLIC COMPANY LIMITED
- TMB BANK PUBLIC COMPANY LIMITED
- UNITED OVERSEAS BANK (THAI) PUBLIC COMPANY LIMITED
- Research sample
- Quality of measurement
- Data analytical methods
External customer reports My company provides reports on customers or competitors based on its accumulated experience 5. Repository and database My company uses a database to collect data and categorize it into well-structured information. Learning by doing. My company encourages employees to use knowledge from the organizational repository and reflect that knowledge in their workplaces.
Simulation and Forecasting My company provides models and case scenarios for simulation that can be used to predict the outcome. Return on relationships Customer royalty In general, my company has a good relationship with our customers. My company encourages a culture of knowledge sharing (ie rewarding employees who have new knowledge, ideas and/or suggestions).
Knowledge internalisation - My company offers education and training to increase employees' skills for new tasks.
FINDINGS
Pilot testing analysis
- Data preparation
- Pilot data analysis
17 My company usually updates its database K_C3 Updating database 18 I edit and process collected information from various. 24 My company offers one-on-one training for new carpenters to do their work along with coaching from senior members. 25 My company provides models and case scenarios for simulation that can be used to predict the outcome.
P_B3 Risk identification, Risk analysis, Risk monitoring and control 9 My company has the ability to respond to and reduce contingencies. 17 My company encourages a culture of knowledge sharing (i.e. rewards employees who have new knowledge, ideas and/or suggestions). P_S1 Regulatory Compliance 34 My company sponsors and funds voluntary service P_S2 Sponsorship 35 My company integrates charitable contributions into its.
Considering each pair of strong association in Table 4.5, the higher VIF value should be eliminated to reduce it.
Data analysis
- Data preparation
- Profiles of respondents
- Reliability analysis
- Validity analysis
- Descriptive data analysis
Approximately two-thirds of respondents (67.5%) agreed that their banks should initiate joint projects across departments that allow employees. 73.0% of respondents agree that their banks update their database from time to time. Considering the customer's point of view, Table 14.8 shows that 88.3% of respondents stated that their banks have good relations with customers.
Regarding the Business Process perspective, 85.5% of respondents stated that their banks pass many quality certifications such as CMMI, ISO, etc. 77.0% of respondents stated that knowledge and information are regularly updated and properly maintained within their banks. 74.8% of the respondents revealed that their banks use the management system to store the necessary knowledge for future use.
The last perspective is the social perspective. 84.3% of respondents confirmed that their banks comply with regulatory authorities and local government.
Testing the difference between demographic groups
- Independent t-test
- One-way ANOVA
To meet the assumption of normality, data transformation was used to improve normality of data. Independent sample test table in Table 4.20 gives the result of t-test between male and female and between bachelor's and master's degree. The assumption of independence was met as the observation of each group was independent of each other.
Tests of the assumption of homogeneity of variances can be identified from Levene's F Test for Equality of Variances. If the P value is greater than 0.05, the null hypothesis is accepted, meaning that the assumption of homogeneity of variance was met. Since the assumption of homogeneity of variance was met for all groups, test differences in means were assessed from the ANOVA table.
The ANOVA results in Table 4.23 indicated that there is no difference between the mean of agreement in the knowledge creation process among position level, work experience, banking experience and salary as the P value for these groups was higher than 0.05.
Hypotheses testing
- Multiple regression
- Testing hypothesis 1
- Testing hypothesis 2
- Testing hypothesis 3
- Testing hypothesis 4
- Testing hypothesis 5
- Testing hypothesis 6
- Testing hypothesis 7
Therefore, the hypothesis that there is a relationship between knowledge creation process and financial performance in Thai banking industry was accepted. In short, the second hypothesis was accepted, namely that the knowledge creation process has a positive relationship with financial performance in the Thai banking context. This can be interpreted that the knowledge creation process had a positive relationship with business process performance.
This can be explained that the knowledge creation process had a relationship with intellectual capital performance in Thai banking industry. The result from regression stated that the knowledge creation process was positively related to employee performance in Thai banking. This confirmed that there was a relationship between knowledge creation process and social performance in the Thai banking sector.
The regression results confirmed that the knowledge creation process is positively related to social performance in the Thai banking context.
Summary results
Regarding the difference perception of the knowledge creation process among employee groups, the independent t-test and one-way ANOVA were used to examine the mean difference. The independent t-test found no difference on the perception of the knowledge creation process between genders, but it highlighted the difference between bachelor and master employees that bachelor employees were found to have more agreement about the knowledge creation process than master employees in the Thai banking context. The result from one-way ANOVA indicated no significant difference on the knowledge creation process among groups of age, position level, work experience, banking experience and salary.
Multiple regression with stepwise method was used to identify the relationship between knowledge creation process and the perception of organizational performance, including each perspective of organizational performance. The results showed that all hypotheses were accepted, meaning that the knowledge creation process was positively related to organizational performance in the Thai banking industry, but not all four kinds of SECI processes were significant when specified for each perspective of organizational performance. It can be concluded that the knowledge creation process was not the important factor for customer performance.
In terms of business processes and intellectual capital, all four SECI models were found to be significant.
CONCLUSION
- Summary of findings
- Practices of KCP in Thai banking industry
- The effects of KCP upon banking performance
- Theoretical implications
- Practical implications
- Limitations of the study
- Recommendations for further study
The informal meeting was found to have rather low agreement, indicating that Thai bank employees were likely to have fewer work-related discussions during breaks or meal periods. This could be the strict working hours of the banking industry that limited this activity. Job rotation had the lowest mean score, showing that employee rotation across departments was not supported in Thai banks. Therefore, it may not see the difference in the knowledge creation process in their work activities. This may be the reason why bachelor's degree employees used the knowledge creation process more than master's degree employees.
The knowledge creation process had a positive effect on banking performance, but not all SECI processes had a significant effect on every perspective of organizational performance. Surprisingly, the SECI process was found to be an insignificant factor for customer performance, which revealed that knowledge creation activities in Thai banks could not affect customer satisfaction, strategy for acquiring new customers and maintaining good customer relations. SECI process practices can be used to gain insights from customers to expand the boundary of the knowledge creation process with customers.
It is also recommended to investigate the effect of knowledge creation process on organizational performance in other countries and business contexts.
REFFERENCES
Paper presented at the Proceedings of the 7th International Conference on Intellectual Capital, Knowledge Management and Organizational Learning, Hong Kong Polytechnic University, Hong Kong (pp. 47-60). Knowledge management and the SECI model: a study of innovation in the Egyptian banking sector (Doctoral dissertation). Exploring the relationship between the knowledge creation process and intellectual capital in the pharmaceutical industry.
The effect of entrepreneurial orientation, innovativeness and knowledge creation on firm performance: A perspective on small entrepreneurs.
APPENDICES
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Knowledge Creation Process
11 My company provides reports to clients or competitors based on its accumulated experience 12 I use communication tools. 21 My company created training topics for employees based on expert suggestions 22 I edit and process collected.
Organizational performance
16 My company promotes a culture of knowledge sharing (ie rewarding employees who have new knowledge, ideas and/or suggestions) 17 We use information systems. 31 I am satisfied with my career progress in the company 32 I am satisfied with my salary 33 I am satisfied with.
Personal Information
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ระดับการศึกษาสูงสุด
แผนกหรือส่วนงาน
ต าแหน่ง
เงินเดือน
Correlation coefficient (Pilot Testing N=50)
Box-Cox plot
Independent t-test results
The post-hoc test
Regression result of hypothesis 1
Regression result of hypothesis 2
Regression result of hypothesis 3
Regression result of hypothesis 4
Regression result of hypothesis 5
Regression result of hypothesis 6
Regression result of hypothesis 7
