Harnessing Knowledge for Performance: An Empirical Study of Knowledge Management Practices in Nepal’s Public Banks

Abstract

This study aims to investigate the impact of key knowledge management (KM) components—knowledge acquisition, conversion, transfer, and application—on the performance of Nepalese public banks. The research utilized a survey-based methodology, collecting data from 120 employees across 3 government-owned banks in Nepal. The data were analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS) to examine the relationships between KM components and bank performance. The results indicate significant positive relationships between knowledge acquisition, conversion transfer, and bank performance. Knowledge application  reveals a remarkable negative impact, though knowledge conversion exhibits a comparatively lower effect. The findings highlight the strategic role of KM practices in enhancing operational efficiency and sustaining competitive advantage. This research emphasizes the importance of strategically managing knowledge dimensions—particularly knowledge transfer and acquisition—to improve organizational learning, service quality, and innovation in Nepalese public banks. While offering valuable insights for policymakers and bank management, the study advocates for targeted investments in KM practices to adapt to dynamic market conditions.