Knowledge Management in Banks

The future of banking is dependent on the managing of knowledge assets. This is a business research to identify key organisational capabilities for effective implementation of Knowledge Management (KM) in banks. The research suggests that effective KM programme is determined by three organisational capabilities: Management Capability, Knowledge Infrastructure and Knowledge Process. Applying structural equation modelling technique (AMOS), a Malaysian Bank KM Model was constructed from survey data. The model identified out of 11 KM success factors, six were critically dysfunctional in Malaysian banks, namely, Process, Generation, Dissemination, Application, Culture and Entrepreneurial Management Capability. Entrepreneurial Management Capability is key to successful KM programme, especially to address the present predominantly conventional management ideology that practice 'silo mentality' and does not promote a learning organisation. Other barriers are the dysfunctional organisational culture that only give lip service to the importance of knowledge and the erroneous perception that IT and KM are the same.