The Effects of Knowledge Creation Process upon the Organizational Performance: A Study of Thai Banking Industry

Abstract—As knowledge-based economy emerged, knowledge management (KM) turns to be a principle for organizations to maximize to the value of knowledge. Among KM domains, knowledge creation is the most concerned aspect when it comes to innovation, creativity, performance, and learning. Reviewing on academic literature, the application of SECI model, a well-known knowledge creation theory, is hardly seen in Southeast Asian countries especially in banking industry. The objective of this study is to investigate the effects of knowledge creation upon the organizational performance. The research scope is banking industry in Thailand, focusing on commercial banks. The goal of research was achieved by developing statistical testing using multiple regression. Findings indicate that knowledge creating process positively affect to organizational performance. However, based on Holistic scorecard framework, not all modes of SECI process significantly affect to each perspective of organizational performance. Knowledge creation process is also influenced by collective culture and the nature of banking industry which makes each SECI process affects differently to organizational performance.

Index Terms—Knowledge creation process, SECI model, knowledge management, organizational performance.

Cheewanan Arijitsatien and Vichita Vathanophas Ractham are with the College of Management, Mahidol University, Thailand (e-mail: cheewanan.a@gmail.com, vichita.rac@mahidol.ac.th).

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Cite: Cheewanan Arijitsatien and Vichita Vathanophas Ractham, "The Effects of Knowledge Creation Process upon the Organizational Performance: A Study of Thai Banking Industry," International Journal of Culture and History vol. 3, no. 4, pp. 236-242, 2017.