Affiliation:
1. Queensland University of Technology, Australia
2. Southern Cross University, Australia
Abstract
The present study aimed to explore the role of knowledge management practices in promoting creativity and innovation in the service sector concerning the banking industry. The study assumes knowledge as an intangible internal asset and innovation as a way to develop sustainable strategic capabilities that are difficult to imitate. This quantitative study tested five proposed hypotheses on 437 responses collected from banking employees through the PLS-SEM method. Light indicated that knowledge sharing, application, and protection directly contributed to firm innovation, whereas knowledge creation encounters complete mediation through employee creativity. The study combines RBV and KM perspectives in developing long-term strategic capability and strengthens the evolutionary view of economists that new knowledge is based on existing knowledge, conforming the effect of knowledge protection to knowledge sharing. The study develops a knowledge management framework incorporating working/operational knowledge protection as one of the main dimensions of the knowledge management process.