Factors Influencing KM Strategic Alignment in the Banking Sector

Abstract

In today’s business environment, knowledge is increasingly recognized as the most important and valuable asset in organizations and a key differentiating factor in business. Therefore, many organizations are positioning themselves strategically based on their tangible and intangible internal resources, and their capabilities rather than on their products and services. However, in order for an organization to be successful in the exploitation of knowledge assets to drive competitive advantages, a holistic approach that spans Knowledge Management (KM), business strategy, and organizational and human factors should be used. The aim of this study is to investigate the effect of some factor on KM Strategic Alignment between KM and business strategy in the banking sector at Persian Gulf Countries. The results have indicated factors such as knowledge sharing, trust, openness to change, IT infrastructure and skills, and existence of CKO are strongly correlated to the strategic alignment between KM and business strategy. Thus, managers in the Persian Gulf banking sectors should adopt new rules using flexible organizational culture, reforming and redesigning their organizational structure, and incorporating an advanced information technology in their operations for competitive advantage.