Positioning the Knowledge Creation and Business Strategy on Banking Industry in a Developing Country

Abstract

This article aims to align business strategy and knowledge creation in banking industry through knowledge management (KM) approach by maximizing the tangible and intangible resources. Prior study offered more general context of KM approach while misplaced and less discussed practical process of knowledge sharing practices in the context of banking industry. We developed research model by focusing on banking organization, especially in a developing country. The authors use literature review and document analysis of business strategy in bank. This article integrated and analyzed knowledge gap and business strategy to develop a comprehensive approach for banking company. The gap between what a bank knows and needs to know is an internal knowledge gap, in a sense representing the strengths and weaknesses of a “the alignment between knowledge–business” analysis. The gap between what they know and what its competitors know is an external knowledge gap. It represents the opportunities and threats of a knowledge–business analysis. In addition, there is still no specific team, department, and strategy to manage knowledge assets. The results of this research may help finance companies and managers to initiate KM or to encourage knowledge sharing in banking organization. Therefore, managerial level is supposed to develop a strategy and regulation to encourage employee's participation in knowledge transfer schema. We combined numerous methods and theories namely Zack and Nonaka models as tools to solve the obstacle of alignment between business-knowledge strategic gap and knowledge sharing schema.