Practice of Knowledge Management Strategy by Banking Industry of Nepal

Empirical evidence supports the view that Nepalese banks with a knowledge management capability will also use resources more efficiently. Therefore, this study finds that a firm's KM strategy relates to its strategic arrangements in building and management knowledge stock through the effective process of creating, transferring and distributing knowledge. This research result indicates that a fit between business and knowledge management strategy are significantly related to better organizational performance through effective management of Human Resource Strategy in organizations. Finally, this paper concludes that Nepalese banks effectively management knowledge are more innovative and have better performance than the banks do not takes this factor into account. However, small size of sample, coverage of some banks located in Kathmandu valley only, and participation of officer level staffs are the main limitation and shows that there are still rooms to research in Nepalese banking sectors to know the real situation of KMs alignment effectively. Keywords--Knowledge Management Strategy, Competitive Strategy, Alignment, Banking Industry, Nepal. I. RATIONALE OF THE STUDY O meet the challenges of turbulent environmental change that surrounds business firms. In recent days, company must shift their existing management approaches and production service paradigms. The business environment is rapidly changing since 1980s and it open up a new chapter of challenges and opportunities change in the business environment require new business objectives, systems and strategies to meet the challenges of 21 century needs and demands. The growth of banking sector in Nepal is much better compare to other sectors in the country. The economic reforms initiated by the government more than one and half decade ago have changed the landscape of several sectors of the Nepalese economy including the banking industries. The banking industry is vigorously increasing in the country since the introduction of liberalization in the beginning of 1980s and its reform policy in 1990s. Over the past 20 years, Nepal's banking industries have grown rapidly. Interms of both business volume and assets as well as market. But due to the absence of proper knowledge management practices and reducing number of banking professionals, there may arise complex situation and it is because of liberalization and reforming finance sectors. Manoj K. Chaudhary, Lecturer and Ph.D. (Scholar), Central Department of Management, Kirtipur, Kathmandu, Nepal. Email: [email protected] It is really a challenging job since new banks enter each day and WTO rules will soon inject stiff competition. Thus, a bank must be sure of its position in the competitive market and of its business strategies for defending and gaining current market share under complex situation. So to be the best and to sustain in the market, human resource through Knowledge Management Strategy effective application with upgrading capability is required. These studies indicate the gap of understanding in the area of knowledge management strategy with business strategy for performance and competitiveness. In case of going through various research work of renown experts as the part of research undertaking, it is fairly learnt that knowledge management initiative are unlikely to be successful unless they are integrated with diverse business strategies and unless they are related to the development of the core capabilities of the organization. The study has revealed that the implementation of knowledge management as the integrated part of an organization has every remained a gap in Nepal. Therefore it has been the part of this paper. Additionally, and linking the field of knowledge management with the field of corporate activities, more empirical research on the organizational knowledge contest is needed in Nepalese organization. So in order to facilitate and advance the field of knowledge management with their corporate activities and the development of intellectual resource in Nepalese Banks. In Nepal, despite very few research had pursued in the field of Knowledge Management, there has not yet been conducted research among knowledge management strategy with relation to the business strategy in the field of banking sectors. Therefore, this study is carried out to fulfill this gap.