Leveraging knowledge management for advancing innovative thinking in the banking sector: Insights from South Africa

Abstract

Knowledge management is considered as one of the most important factors in ensuring sustainability within organizations, especially in the banking sector. Since knowledge management is an integral part of managerial activity, it is imperative that organizations adopt knowledge-driven culture within which innovations can be incubated. An organization where knowledge management is used to drive innovation is better positioned to create a competitive advantage for itself and to ensure that it achieves a sustainable value creation for its survival. The purpose of this study was to identify key attributes relating to knowledge management that the banking sector can leverage on, in order to inculcate the innovation culture and allowing banks to acquire competitive advantage. For this study, a positivistic research paradigm by means of a quantitative research methodology was undertaken, using a sample from respondents in the banking sector and testing hypotheses through a structured measuring instrument. Based on the empirical study, it was determined that the banking sector applied specified concepts to embrace an innovation culture. These concepts included leadership initiatives and innovation competitiveness. It was concluded that leadership initiatives appeared to be the most important critical factor in driving innovative knowledge-driven culture.