The Extent to Which Knowledge Management Contributes to Improving Employee Performance in Libyan Institutions: An Applied Study on Jumhouria Bank

Abstract

This study aims to investigate the effect of knowledge management processes on employee performance at Jumhouria Bank. Specifically, it examines the level of knowledge diagnosis, knowledge generation, knowledge storage, knowledge distribution, and knowledge application, and tests the effect of each process on employee performance. The study adopted a descriptive-analytical approach and used a questionnaire to collect data from employees at the bank’s general administration and selected branches. The         questionnaire        included personal and occupational information, 30 items measuring knowledge management processes, and 18 items measuring employee performance, using a five-point Likert scale.

To assess the quality of the research instrument, the study relied on content validity and face validity, in addition to Cronbach’s alpha and the self-validity coefficient. Frequencies, percentages, means, standard deviations, factorability tests, and regression analysis were used to analyze the data and test the research hypotheses through

SPSS.

The findings revealed a relatively low overall level of knowledge management implementation, with differences across its dimensions. Knowledge diagnosis, knowledge generation, and knowledge distribution were found to be relatively low, whereas knowledge storage and knowledge application were relatively high. The findings also showed a generally high level of employee performance, except for the work quantity dimension, which was relatively low. The dimensions of work quality, knowledge and skills, job commitment, initiative and creativity, and cooperation and teamwork were found to be relatively high.

Regression results indicated a statistically significant effect of knowledge management on employee 

a standardized regression coefficient of β = 0.719 and p <

0.001. The results further indicated that knowledge management explained approximately 51.6% of the variation in employee performance. Significant effects were also found for knowledge diagnosis, knowledge generation, knowledge storage, knowledge distribution, and knowledge application. According to the individual models, these processes explained approximately 30%, 39.8%, 62.9%, 33.7%, and 21.6% of the variation in employee performance, respectively. The study recommends establishing clear mechanisms for identifying employees’ knowledge needs, encouraging knowledge generation and innovation, developing an electronic knowledge repository, strengthening knowledge sharing across branches and departments, and linking knowledge application to performance  evaluation,  training,  and  continuous

improvement.