a research to identify knowledge orientation in indian

A research to identify knowledge orientation in

Indian commercial banks

Himanshu DuttDoctoral Research Scholar

Centre for Management Studies, Jamia Millia Islamia (Central University), New Delhi, INDIA

Presented on Sept. 5, 2011 @ Centre for Management Studies

where is knowledge?

So, where exactly knowledge is??

So, knowledge is…

METHOD

PROCESS

MODEL

FRAMEWORK

FLOWCHART

Commitment X Competence = Intellectual Capital = Value

knowledge is:

– different meaning to different people.– in the mind of the knower.– requires critical evaluation.– converts tacit to explicit for use. – composes of experience, reflection, context, interpretation,

commitment, competence. – builds upon conversations, dialogues and discussions – formal,

informal both. – knowledge, mechanically, is in models, processes,

methodologies, flowcharts and frameworks. – divest the knowledge that can’t be leveraged.

KNOWLEDGE ORIENTATION

(RESEARCH VARIABLE)

EXPERIENCE, CONTEXT,

INTERPRETATION, REFLECTION

EXPLICIT, TACIT

COMMITMENT, COMPETENCE

CULTURE, STRUCTURE, PROCESS,

LEADERSHIP, TECHNOLOGY

BEST PRACTICE, FAILED PRACTICE

HUMAN (INDIVIDUAL),

SOCIAL (GROUP)

SKILL, CREATIVITY, LEARNING

FACTUAL, CONCEPTUAL,

PROCEDURAL, META-COGNITIVE

SCIENTIFIC, TECHNICAL, SOCIALKNOWLEDGE FORM

KNOWLEDGE COMPONENTS

KNOWLEDGE TYPES

KNOWLEDGE CAPITAL

KNOWLEDGE DETERMINANTS

KNOWLEDGE EFFECT

KNOWLEDGE VALUE

KNOWLEDGE IMPROVISERS

KNOWLEDGE INFLUENCERS

LATENT VARIABLES MANIFEST VARIABLES

but first, why banking?

• automation and computerization process as part of financial sector reforms.

• banking generates pile of data from their multiple products and services

(accounts, loans, insurance, financial advisory) and different interaction

points (ATM, internet, mobile), that often causes ‘information overload’.

• with international norms like BASEL III accord, & core-banking; the demand

for technological infrastructure to meet competitiveness is rising upwardly.

• risk management is another area that statutorily requires banks to

document its processes (service point interactions) and systems

(technology, software etc.) for compliance management.

• Above all, the fact is tangible assets can help up to a certain extent.

methodology used: questionnaire

Latent Variables (9) ManifestVariables

(27)

Meaning for Manifest Variables

Rating Option

KnowledgeForms

Kindly rate each knowledge form based on the scale of 1 (least) to 5 (highest) in terms of their (perceived) contribution in building knowledge in your (department / team) bank?

Scientific (adjective)

1. Involving science, 2. Connected with science; 3. Having to do with science, 4. Derived from, or consistent with the scientific method.

1__2__3__4__5 1 = Least5 = Highest

Technical (adjective)

1. Connected with the practical use of machinery, methods, etc. in science and industry; 2. Of or pertaining to the useful or mechanic arts, or to any academic, legal, science, engineering, business, or the like terminology with specific and precise meaning.

1__2__3__4__5 1 = Least5 = Highest

Social (adjective)

1. Connected with your position in society; 2. Being extroverted or outgoing.

1__2__3__4__5 1 = Least5 = Highest

methodology used… 2

– sample size fit to proceed for data analysis: 280

– respondents: KM professionals from Indian commercial banks

– 14 banks: 14-private, 9-foreign, 3 public

– data is analyzed using Confirmatory Factor Analysis

– measures of fit are Chi-square value, P-value, and Root Mean

Square Error of Approximation (RMSEA).

• small chi-square corresponds to good fit i.e. 0 is perfect fit.

• P-value: 0.05 means good fit; however 1.0 is perfect fit;

• RMSEA value: 0.05 indicates good fit; however 0 is perfect fit.

model validation of knowledge form

Interpretation:

Every one unit increase (+) in Social Knowledge will add 0.41 units to Knowledge

Forms whereas every one unit increase in Technical Knowledge will decrease (-) 0.06

units from Knowledge Forms.

Knowledge Orientation Scorecard

S. No. Latent Variables Manifest VariablesIncrease Decrease

Neutral(+) ( - )

1 Knowledge Forms       

  Social Knowledge 0.41    Scientific Knowledge 0.21    Technical Knowledge 0.06 2 Knowledge Components       Experience 0.14    Context 0.03   Interpretation 0.07   Reflection 0.86  3 Knowledge Types       Tacit 0.35    Explicit 0.36  4 Knowledge Capital       Competence 0.22    Commitment 0.33  5 Knowledge Determinants       Culture 0.33    Structure 0.44    Processes 0.04    Leadership 0.5    Technology 0.47  6 Knowledge Effect       Best Practices 0.1    Failed Practices 0.89  7 Knowledge Value       Human (Individual) 0.08    Social (Group) 1 8 Knowledge Improvisers       Skills 1    Creativity Neutral  Learning 0.03  9 Knowledge Influencers       Factual 1    Conceptual 0.04   Procedural 0.05     Meta-Cognitive 0.02   

analysis

• knowledge orientation of commercial Indian bank staff is social, not at all

technical, but moderately scientific.

• driven more by (staff) reflection and less by experience. Context does not

matter. Scope for staff interpretation does not exist.

• uses codified/ explicit knowledge more than the tacit.

• requires being more competent than commitment.

• leadership drives the knowledge supported by technology and then the

culture of knowledge sharing.

• Ironically, individual knowledge is valued more than the group knowledge.

• knowledge is more influenced by the facts, and the failed practices.

usefulness

• organization must first become familiar with its knowledge orientation

that is the composition of elements of knowledge, that shapes up

knowledge of the organization.

• identify what sort of knowledge it should look out for and, how it should

be acquired and put to use.

• based on which what knowledge elements to use, shape, drop or re-

develop can be determined.

• determine the strategic value of their knowledge and optimize it further

for competitive advantage, which is the ultimate goal of knowledge.

Questions!

himanshudutt@gmail.com

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