The Impact of Knowledge Management Practices on Organizational Effectiveness in Sudanese Financial Sector: Mediating Role of Innovation Capabilities and Moderating Effect of Organizational Culture

Abstract

The purpose of this study is to investigate the relationship between knowledge management practices and organizational effectiveness, in addition to identifying the mediating effect of innovation capabilities and the moderating impact of organizational culture on this relationship in financial institutions sector in Sudan. In order to achieve the research aim and objectives, this study is preceded by a critical review of the relevant literature that leads to the development of a comprehensive theoretical model. Data collected from top management levels of 134 financial institutions in Sudan by using a survey questionnaire with a design based on previous studies, and analyzed using the Statistical Package for Social Sciences, SPSS V.23, and the Analysis of a Moment Structures, AMOS V.21. A total of 130 respondents from top management levels of the organizations have answered and filled out the questionnaires which created the response rate of 97 percent. This research in nature is quantitative and deductive and uses survey method by self-administered questionnaire. The results of this study show that there is a positive relationship between knowledge management practices and organizational effectiveness, and that innovation capabilities are full mediators in the relationship between the two types of knowledge management practices and the two components of organizational effectiveness. Moreover, the findings of this study demonstrate that organizational culture is a partial moderator in the relationship between knowledge management practices and organizational effectiveness except for one dimension of organizational culture (i.e. Strategic Emphases). This study makes several contributions one of which is the provision of a comprehensive framework which explains the importance and impact of innovation capabilities as a mediator and organizational culture as moderator on the relationship between knowledge management practices and organizational effectiveness. Moreover, this study provides a novel contribution to the growing literature on the relationship between knowledge management practices and organizational effectiveness in financial institutions sector, particularly for developing countries such as Sudan. Furthermore, the findings of this study provide meaningful managerial implications and can be used as a guide for managing knowledge appropriately to improve organizational effectiveness