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Enhancing innovation and productivity through knowledge management: The

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 Journal of Knowledge Management Practice, Vol. 13, No. 1, March 2012

Enhancing Innovation And Productivity Through Knowledge Management:

The Case of Unique Trust Bank In Ghana

Michael Asiedu Gyensare, Joan-Ark Asare, University of Cape Coast, Ghana.

ABSTRACT:

The banking industry is a major player in the growth and development of Ghana’s
economy. The fundamental thrust of this research was to examine how knowledge
management enhances innovation and productivity in the UT bank in Ghana. An
exploratory case study design was adopted for the study. Data were collected through
an interview guide from 20 bankers in four departments in UT bank. Based on the
interviews, the following findings were identified as: (a) knowledge creation and
management are strategic; (b) knowledge sharing brings social cohesion-a platform
for interpersonal and interdepartmental unity, and (c) proper KM gives the bank
competitive edge over its competitors in the marketplace in terms of the development
new products and services. We conclude by proposing some policy recommendations
and identifying areas for future research. The management of retail customer banking
needs to pay particular attention to KM practices in order to enhance innovation and
productivity in the financial sector. Again, it is recommended that both quantitative
and comparative studies be conducted on the topic to add to the extant KM literature.

Keywords: Innovation, Productivity, Knowledge management, Unique trust bank,

Ghana.

1. Introduction

In today’s information economy with its fierce competition, the success and survival
of every organisation depends on how well the organisation is able to produce and
distribute information and knowledge for its usage. Traditionally, tangible assets like
plant, equipment, inventory and financial capital are considered the most fundamental
corporate assets with intangible assets (e.g. knowledge) playing a very little role in
any organization regardless of the industry it belongs to (Vorbeck et al., 2001).
Many organisations up till now still underestimate the significance of their intangible
assets. Nevertheless, in spite of managing and giving key attention to all their tangible
assets, organisations still finds it difficult to gain competitive edge over their
competitors (Hafizi & Nor, 2006). Eventually, organsations have found out that
tangible assets alone cannot help in achieving their set objectives. It is now becoming
clearer that organisations require a much broader range of resources to be able to
compete and succeed in the current competitive market. This is shown by an
increasing number of organizations giving more emphasis to their intangible assets,
which was most often left idle, unexplored and unmanaged (Vorbeck et al., 2001).

In order to succeed and become a competitive force in the marketplace,

financial organisations need to learn to manage their intangible asset, knowledge, well.
Knowing how to do things effectively and efficiently in ways that
other organisations cannot duplicate is a primary source of profit and competitive
advantage that cannot be purchased easily by competitors in the marketplace
(Laudon & Laudon, 2010). Thus, innovation and increased performance or
productivity through knowledge management occur when organisations explore and
manage effectively and efficiently their intangible asset and the practice of doing this
is referred to as Knowledge Management. According to Asian
Productivity Organisation [APO] (2008) “KM is an integrated approach of creating,
sharing and acquiring knowledge to enhanceorganisational productivity, profitability
and growth” (p.37). The key term here is “integrated approach” which means that it is
multidisciplinary and therefore considers the people aspect, the process aspect and the
technology aspect. This definition therefore provides a holistic overview of KM
focusing on productivity, profitability and growth. In addition to this, Lyons (2000)
opines that knowledge management is the concept in which an enterprise consciously
and comprehensively gathers, organizes, shares, and analyses its knowledge in terms
of resources, documents, and people skills. Thus, success in the financial sector comes
when firms are able to manage and share their intangible asset for their progress and
prosperity in the industry.

One cannot talk of knowledge management without looking at its ingredients.

Information and communication technologies are important ingredients of virtually
every successful knowledge managementprogramme (Asian
Productivity Organisation, 2008). For instance, the incorporation of effective solutions
in the ever-widening retail banking industry in the form of artificial intelligence
solutions, new types of document management systems and various collaborative
technologies such as the internet and the intranet make the industry a competitive
place for survival. Thus, technology and innovation for knowledge management are
the two parameters that will essentially be able to mould the positive impact of the
above steps towards achieving a “knowledge-oriented society” in the near future. The
continuous fluctuations in the financial market and the demand for new and better
products and services by customers have been gradually replacing the capital
and labour-intensive firms with knowledge intensive firms. Therefore, knowledge
management is now undeniably an important component in a firm’s intangible assets.

Despite the dominant benefit of knowledge management to the corporate world in the
form of competitive excellence and product innovation, not enough studies, if any,
have been conducted to unveil its benefits to the banking sector of Ghana. Most of the
studies conducted so far (Asian Productivity Organisation, 2008; Duffy,
1999; Hafizi & Nor, 2006; Prusak, 1999) are from the outside world specifically Asia.
The results of these studies cannot be generalized to retail banking institutions in
Ghana since the studies did not cover this area. It is against this background that the
researchers have decided to conduct an exploratory study to examine how knowledge
management enhances innovation and productivity in the UT bank in Ghana.

2. Empirical Review

2.1. Knowledge And Knowledge Management In The Banking Sector

For the past two decades, banks have been actively computerizing their manual
processes to speed up their daily transactions and to meet the demands of their ever-
widening clients. This has become possible as a result of the bank’s ability to manage
their knowledge repository properly. According to Robbins and Coulter (2005),
Knowledge Management (KM) involves cultivating a learning culture where
organizational members systematically gather and share knowledge with others within
the organization so as to achieve better performance. Management must, therefore, try
to make it easy for staff to communicate and share their knowledge in order that they
can learn from other ways to do their jobs more effectively and efficiently and
eventually improve organizational performance. However, Prusak(1999) asserts
that knowledge management relates to generating, sharing, and disseminating
knowledge "on the fly", taking advantage of modern technology to mobilize the full
resources of the organization to solve specific problems in shorter time frames than
were hitherto possible.

Becerra-Fernandez et al. (2004), discourse that knowledge is first created in peoples’

minds. A company must identify ways to encourage and stimulate the ability of
employees to develop new knowledge. Besides, a company must enable effective
ways to elicit, represent, organize, re-use and renew this knowledge. The people using
KM systems are the integral part of the KM systems. Moreover, a company needs to
use social mechanisms and technologies to facilitate knowledge workers to discover,
share, and apply their knowledge. Hence, KM comprises a range of strategies and
practices used in an organization to identify, create, represent, distribute, and enable
adoption of insights and experiences. Such insights and experiences comprise
knowledge, either embodied in individuals, tacit or embedded in organizational
processes or practice, explicit.

Knowledge Management is the discipline of enabling individuals, teams and entire

organizations to collectively and systematically capture, store, create, share and apply
knowledge to better achieve their objectives.” Although there is nothing new in
managing knowledge per se, there is something totally new about doing this
“collectively” and “systematically” by using new strategies, knowledge processes and
knowledge communities/networks, coupled with supporting and enabling
technologies. This has never been possible before and, for those organizations that
implement effective knowledge management strategies, the benefits can be substantial
(Rao & Sarma, as cited in Asian Productivity Organisation, 2008). The benefits to the
organization can be highly strategic and transformational, as well as operational.

According to Hafizi and Nor (2006), the application of knowledge management in the
banking industry does not really differ from other industries but the increasing
complexity of bank’s environment makes its implementation more difficult. Banks
have realized the crucial role of knowledge management in gaining an edge in this
competitive field, but there have been laggards in the adoption of knowledge
management usually due to wait and see attitude of what will be the true benefits and
pitfalls from early adopters. According to the International Data Corporation’s (IDC)
survey conducted across more than 600 banks in Western Europe only 20% of banks
are currently applying knowledge management principles (Blesio & Molignani,
2000). This trend is actually more prevalent among large banks. With greater
awareness of the importance of knowledge management, IDC expects this situation to
change in the near future, and knowledge management will become a priority for the
banking sector.

Although there are some who believe knowledge management is a fad, Young (2003)
firmly believe that senior management, in the banking sector, will always be
interested and absorbed in better ways to create and apply knowledge. The term
“knowledge management” may be misleading or may even go out of fashion in
certain parts of the world. However, knowledge always has been, and always will be,
a critical resource and can be the most strategic asset for any individual, organization,
region and, of course, for the entire planet. Knowledge working is also very eco-
friendly and provides the opportunity for everyone to improve their quality of life.
Young (2003) further agrees with the global knowledge evangelists and knowledge
capitalists who see knowledge as the wealth creator for the 21st century. To survive
and to succeed, and to develop and grow in a sustainable global knowledge economy
(Prakash, as cited in Asian Productivity Organisation, 2008) we need to become, as
quickly as possible, knowledge-driven organizations in a knowledge-based society. In
conclusion, realizing the important roles knowledge management plays in the
economy, banks are trying to make it a priority to capture and manage their data and
turn it into organizational knowledge or business intelligence. However, the lack of
process definition, classification, a comprehensive knowledge management model,
and suitable knowledge based business model make their efforts futile.

2.2. Knowledge Management And Innovation In The Banking Sector

In this new economy propelled by knowledge, the capacity of firms to use innovative
technology and to adapt to new organizational changes or methods plays a key role in
establishing industrial leadership and enhancing their competitiveness. Human beings
have evolved as the sole mangers of the global destiny through their sheer ability to be
creative, which is the only quality that differentiates them from other living species.
According to Young (as cited in Asian Productivity Organisation, 2008) creativity has
been the hallmark of the competitiveness of knowledge-centred corporate firms.
When information is ubiquitous and no longer a source of competitive advantage, it is
the innovative use of that information via knowledge that differentiates people,
companies and nations. In line with this, Laudon and Laudon(2010) opines that
knowing how to do things effectively and efficiently in ways that others cannot
duplicate is a primary source of profit and competitive excellence that cannot be
purchased easily by competitors in the marketplace. Consequently, innovation may
become the basis of all competition in the future market economy.

Traditional innovation literature suggests that organizations innovate by getting new

and/or improved products to the market. Nevertheless, in a service providing
institution, the product is the process. In the words of Wiig (2004), global economy
demands excellence and for that matter many companies are trying to maintain at the
top position by innovating faster than their competitors in order to survive.
Again,Frei et al. (1998), suggest that innovation in banking lies more in process and
organizational changes than in new product development in a traditional sense.
Innovation is the means by which the entrepreneur either creates new wealth
producing resources or endows existing resources with enhanced potential for wealth
creation (Drucker, 1985). This, therefore, gives place to knowledge management as
the process of innovation and efficiency in retail banking.

Competition as a result of innovation and creativity has created a fast-paced industry

where firms must change the status quo in order to survive. In accordance with this,
Krishnan et al. (as cited in Asian Productivity Organisation, 2008) argue that all
businesses are vulnerable to some degree, to competitive pressures in the dynamic
marketplace, making their future uncertain. Hence, a start-up company with a website
and access to cheap manufacturing capabilities outside could replicate products at
lower prices and steal a large market share, whereas a global Goliath could apply its
considerable resources and technologies to offer customers more than anyone else.
Porter (2000) is of the view that strategic fit among many activities is fundamental not
only to competitive advantage but also to the sustainability of that advantage.
Positions built on systems of activities are far more sustainable than those built on
individual activities. Nowhere is this force of change felt more strongly than in retail
consumer financial services. According to Lichtenberg (1995), the retail banking
industry continues to consolidate and to invest heavily in new information technology.
As a result, new electronic means of transacting with the bank continue to develop
due to their relative cost advantage with the paper-based banking system. Increased
competition from other players in the financial services industry continues to erode
the market-share of banks. This competition, along with the explosive changes in
information technology, fuels the need for banks to innovate in products, services, and
delivery channels (Lichtenberg, 1995).

However, the means for this innovation in products and service delivery will come
only when the intangible asset of the firm, knowledge, is well managed and catered
for. Thus, investment in new information technology by the bank needs to be
integrated with the banks knowledge management framework in order to culminate in
innovative products development and quality service delivery to its clients. Based on
the assertions above, it can be fairly said that knowledge management is not a
technology. In contrast, technology is fundamental to the knowledge management
progress. Knowledge management is defined as a process that drives innovation by
capitalizing on organisational intellect and experience (Duffy, 1999). Knowledge
management is intended to promote and support the creation of new knowledge, thus
contributing to innovation, an essential ingredient in banking success.

2.3. Productivity Through KM In The Banking Sector

Studies of productivity in the banking industry struggle with the issue of what
constitutes the output of a bank (Loveman, 1994). The various approaches chosen to
evaluate the output of banks may be classified into three broad categories: the assets
approach, the user-cost approach, and the value added approach (Berger &
Humphrey, 1992). However, Benston et al. (1982) posit that output should be
measured in terms of what banks do that causes operating expenses to be incurred.
Whatever the approach may be, productivity cannot be ascertained outside the
ambiance of how a firm’s intangible asset, knowledge, is managed and controlled.
Therefore, it is a strategic and operational knowledge for increasing productivity,
improving relations and developing quality that underpins everything that
the organisation does. Also, Young (as cited in Asian Productivity Organisation,
2008) postulates that knowledge management strategies must be aligned to
productivity, relations and quality because all senior management are ultimately
interested in increasing sales and/or services, reducing costs and optimizing the
delivery of value and/or profit. Hence, effective productivity, improved relations and
quality product development is made possible by a firm’s ability to manage its
knowledge effectively and efficiently.

3. Objective

The general objective of the study was to find out the extent to which innovation and
productivity can be attained through the management of knowledge in UT bank. The
specific objectives seek to find out:

 The strategies employed by UT bank in creating and sharing knowledge.

 The extent to which knowledge sharing is key to the success and survival of
UT bank.

 The impact of knowledge management on the performance of UT bank.

 The competitive excellence gained by UT bank through

knowledge creation and management.

 The benefits of knowledge management to UT bank.

4. Methodology

4.1. Research Design

Due to lack of prior research on knowledge management in the banking sector of

Ghana, exploratory design was adopted for the study. Exploratory case study method
is one of the examples of qualitative research techniques (Connolly, 1999). According
to Yin (1994) and Emory and Cooper (1991), the exploratory case study method, if
used correctly, could provide rich and insightful analysis for theory development. The
major aim of an exploratory study is to gather and explore as much information as
possible regarding a specific subject or research problem, and is designed to identify
and initialize a process for problem description and stating the criteria to judge the
exploration successfully (Yin, 1994). As suggested by Yin (1994), there are three
conditions that must be considered when selecting a research design: (a) the type of
research questions which will determine the choice of the research design; (b) the
control an investigator has over actual behavioural events; and (c) the focus on
contemporary versus historical phenomenon. Using Yin’s criteria, therefore, the
exploratory case study method turns out to be the most appropriate design choice for
this study since the primary aim of this research is to investigate how innovation and
productivity in the UT bank can be enhanced through the management of knowledge.
4.2. Sample And Procedure

Participants included 20 trained bankers from four departments, namely, Research and
Development, E-business, Corporate Affairs Development and Information
Technology in the UT bank. The four departments were purposively sampled on the
basis that they can offer relevant information with respect to the topic under
consideration. In all, 5 participants from each department were interviewed.

5. Empirical Findings

Major findings from the case study are presented under the following sub-categories:
strategies for knowledge creation and sharing; Knowledge sharing-key to success and
survival of banks in Ghana; impact of KM on performance; competitive excellence
through knowledge creation and management; and benefits of KM.

5.1. Strategies For Knowledge Creation And Sharing

The first objective was to find out from respondents the strategies employed by their
bank in creating and sharing knowledge. Interesting findings were recorded from
participants in all four departments. It became obvious from the responses that the
bank, at least, have adopted some strategies for creating and sharing knowledge.

“...writing reports on training sessions attended…staff meetings…working in

teams…and making presentations on knowledge gained at branch
meetings…” (Employees, R&D department, 21st October 2011).

Another strategy as reported by our respondents besides report writing and

presentation of knowledge, which makes tacit knowledge explicit and collective for
the benefit of all employees in UT bank, has to do with;

“…intuition publishing…sending blogs on the banks website as a repository of

information…use of intranet which contains documents pertaining to issues and
products… and through corporate emails, e-learning platforms, help desk
systems, UT library facilities…”(Employees, E-business department,
21st October 2011).

“…currently has an intranet… as a document repository…where staffs can go

and read operational issues…” (Head, IT department, 22nd October 2011).

Finally, an interesting discovery of the strategies employee by UT bank in creating

and sharing knowledge is present below;
 “…T-3[Thursday Thinking Time]…a brainstorming session…with the various
groups…” (Employee, Corporate Affairs Development, 2nd November 2011).

5.2. Knowledge Sharing: Key To Success And Survival Of Banks In Ghana

With respect to knowledge sharing as a key to the success of UT bank, the following
responses were elicited from respondents through the interview guide.

“…made UT bank innovative…challenge the status quo in operations and

enhanced staff capacity…which brings about excellent results…” (Employee,
R&D department, 21st October, 2011).

“…staff to be well informed of their duties…contributed in making UT bank a

goal-oriented bank…” (Employee, E-business department, 21st October, 2011).

“…provides a platform for both senior and junior staff to share

ideas…promotes departmental and interdepartmental cohesion…”(Employee,
Corporate Affairs Development, 2nd November, 2011).

However, respondents were also tasked to comment on the role of knowledge sharing
as a key to the survival of UT bank in the current competitive financial market.
Responses as per participants are presented as follows;

“…it has largely made UT bank to constantly monitor the market environment
to adapt to changing needs of its target market…” (Employee, R&D
department, 21st October 2011).

“…it has enhanced our service delivery to valued customers…for example a

loan in 48 hours is indeed 48 hours… experiences, ideas and innovative
products have been introduced making UT bank …force to reckon with…in the
financial market” (Employee, IT department, 22nd October 2011).

“…helped determined key strategies…for the growth and development of the

bank…” (Employee, Corporate Affairs Development, 2nd November, 2011).

5.3. Impact Of KM On Performance

Again, participants were asked to comment on the impact of KM on the performance

of their bank. Responses gathered from the interview guide on this objective are
presented as follows;
 “…has help built skills and competences of staff members…made UT,
performance oriented bank…enabled the bank achieve its
targets…” (Employee, R&D department, 21st October 2011).

“…awards have been won by the bank…we are able transfer the culture of UT
bank to new staff members through training…” (Employee, E-business
department, 21st October 2011).

Through knowledge management, the performance of UT bank staffs has been

enhanced with their ability to discharge their duties appropriately. This is reported by
one respondent as follows;

“…has enhanced the performance of staffs…and are able to discharge their

duties well…co-operation and communication have been enhanced…customer
feedback about our products and services have been enhanced” (Employee,
Corporate Affairs Development, 2nd November 2011).

5.4. Competitive Excellence Via Knowledge Creation And Management

In the course of the study it was realized that a firm’s ability to create and manage
knowledge gives it a competitive edge over its competitors in the same industry. The
case of the banking sector is no different as portrayed by the empirical findings below.

“…made UT bank develop innovative products and services which makes

UT unique in the marketplace… enabled UT bank to identify the needs of its
target market…and to deliver their services faster and timely” (Employee,
R&D department, 21st October 2011).

Again, it was recorded through the interview that employees through knowledge
creation and management were well informed about their products and therefore, were
able to educate their clients on those available products.

“…employees are well informed about the banks products and services and
therefore able to educate clients on these products and services” (Employee, E-
business, 21st October 2011).

“…we have been able to develop a product dubbed ‘a loan in less than 48
hours’ which gives us competitive advantage in the marketplace” (Employee,
Corporate Affairs Development, 2nd November 2011).

5.5. Benefits Of Knowledge Management

Finally, the study sought to find out from the participants the various benefits derived
from the management of knowledge by UT bank. The recorded responses from the
interview guide are presented as follows;

“…led to the creation of innovative work force…creation of performance

oriented organisation culture….” (Employees, R&D department, 21st October
2011)

“…faster and timely service delivery to clients….led to the training and

development of staffs…increase in customer base and customer
retention…” (Employees, E-business department, 21st October 2011).

“…frequent innovative ideas translating into new products and

services…thought us to respect each other and to welcome innovative ideas
from fellow staff member across all levels” (Employees, Corporate Affairs
Development, 2nd November 2011).

6. Discussion

This section presents the analysis and discussion of the empirical findings towards
previous studies and current knowledge in the research area. The discussions are
presented in accordance with the objectives for the study.

6.1. Strategies For Knowledge Creation And Sharing

The findings showed that UT bank has several strategies for knowledge creation and
sharing. Some of these strategies revealed include report writing, staff meetings,
making presentations on knowledge gained at branch meetings, intuition publishing,
corporate emails, e-learning platforms, library facilities and the intranet. This is in
agreement with the assertion that KM involves cultivating a learning culture where
organizational members systematically gather and share knowledge with others within
the organization so as to achieve better performance (Robbins & Coulter, 2005). It has
been demonstrated that knowledge creation and sharing is regarded as a catalyst for
innovation and productivity. The findings therefore support Prusak’s (1999)
declaration that knowledge creation and sharing helps the bank to take advantage of
modern technology to mobilize the full resources of the organisation to solve specific
problems in shorter time frames than were hitherto possible. Thus, through UT bank’s
“T-3[Thursday Thinking Time]” strategy for knowledge creation and sharing, new
customers or clients are attracted to the unique products and services offered by the
bank.

6.2. Knowledge Sharing: Key To Success And Survival Of Banks In Ghana

Given the competitive nature of businesses in today’s economy, the success and
survival of every organisation depends on how well the organisation is able to
produce and distribute information and knowledge for its users. The findings
underscore the important role of knowledge creation and sharing in maintaining
customer relationships as important for the success and survival of UT bank in this era
of information and communication technologies. As the findings indicated,
knowledge sharing has helped UT bank to provide a platform for both senior and
junior staff to share ideas and to promote departmental and interdepartmental
cohesion. Social cohesion can be defined as “an instantiated informal norm that
promotes cooperation between two or more individuals”. Thus, knowledge sharing
brings people together in various social interactions (Romano, 1990). The findings
again confirm the view that strategic fit among many activities is fundamental not
only to competitive advantage but also to the sustainability of that advantage (Porter,
2000). Again, the findings revealed that knowledge sharing has largely made UT bank
to constantly monitor the market environment to adapt to changing needs of its target
market. Also, the findings revealed that knowledge sharing has enhanced the result
delivery UT bank to its valued customers. Thus, to survive and to succeed, and to
develop and grow in a sustainable global knowledge economy firms need to become,
as quickly as possible, knowledge-driven organizations in a knowledge-based society
(Prakash, as cited in Asian Productivity Organisation, 2008).

6.3. Impact Of KM On Performance

Among the economic benefits of KM is the opportunity for banks to gain new market
shares in the competitive financial market. Improved KM promotes access to
information by its users which in turn enhances productivity and performance.
Productivity gained from the utilization of KM can be substantial for reducing
operation costs and improving revenue (Young, as cited in Asian
ProductivityOrganisation, 2008). However, the findings reveal that through KM, UT
bank has been able to build the skills and competences of its staff. Again, prestigious
awards have been won by the bank and the bank now is able to transfer its culture to
new staff members through periodic training sessions. This findings is in line with
Young’s assertion that knowledge management strategies must be aligned to
productivity, relations and quality because all senior management are ultimately
interested in increasing sales and/or services, reducing costs and optimizing the
delivery of value and/or profit. Hence, effective productivity, improved relations and
quality product development is made possible by a firm’s ability to manage its
knowledge effectively and efficiently.

6.4. Competitive Excellence Via Knowledge Creation And Management

A firm’s ability to create and manage knowledge gives it a competitive edge over its
competitors in the same industry. This gives place to knowledge management as the
process of innovation and efficiency in retail banking. The findings revealed that UT
ban develop innovative products and services which makes UT unique in the financial
marketplace. Again, it was divulged knowledge creation and management helps UT
bank to deliver its products and services faster and timely to its valued customers.
These findings confirm Laudon and Laudon (2010) assertion that knowing how to do
things effectively and efficiently in ways that others cannot duplicate is a primary
source of profit and competitive excellence that cannot be purchased easily by
competitors in the marketplace. The findings again is in agreement
with Drucker(1985) claim that innovation is the means by which the entrepreneur
either creates new wealth producing resources or endows existing resources with
enhanced potential for wealth creation. This, therefore, gives place to knowledge
management as the process of innovation and efficiency in retail banking.

6.5. Benefits Of Knowledge Management

One cannot underestimate the significance of knowledge management in the financial

sector. This is because it is a process that drives innovation and creativity by
capitalizing on organisational intellect and experience (Duffy, 1999). Knowledge
management is intended to promote and support the creation of new knowledge, thus
contributing to innovation, an essential ingredient in banking success. Based on the
findings described in the previous sections, improvement in the knowledge
management of UT bank led to the creation of innovative work force, performance-
oriented organisational culture. Again, the findings revealed that KM led to
improvement in customer base and customer retention as well as frequent innovative
ideas which invariably translate into new products and services. Like Duff (1999), the
findings also supports Young (as cited in Asian Productivity Organisation, 2008)
position that knowledge management strategies must be aligned to productivity,
customer relations and quality service delivery…because management are ultimately
interested in increasing sales and/or services, reducing costs and optimizing the
delivery of value and/or profit. Thus, firms in the banking sector should strive to
manage their knowledge well so as to derive the utmost benefit from it.

7. Conclusions And Implication For Future Research

Many organisations up till now still underestimate the significance of their intangible
assets (that is knowledge). In spite of managing and giving key attention to all their
tangible assets, organisations still finds it difficult to gain competitive edge over their
competitors (Hafizi & Nor, 2006). The findings from this study illustrates that retail
banks in Ghana have some strategies for creating and sharing knowledge among its
users. However, there is the need for more sophisticated logistics to help management
the already existing knowledge and welcome new ones as well. This, therefore,
behooves on management to think strategically on how best to manage knowledge for
innovative and productive service delivery to their clients.

The impact of the nature of knowledge management in the financial sector, UT bank,
has brought about the creation of innovative workforce and the development of new
products. Again, a significant discovery from the study is what we called “T-
3[Thursday Thinking Time]”. Since brainstorming is presumed to be the fuel for
creativity and innovation, other banks in the financial market in Ghana should adopt
the T-3[Thursday Thinking Time] strategy employed by UT bank, as a platform for
the development of new financial products to meet the changing needs of their market
targets. This is because success in this strategy will lead to improvement in their
customer base and retention as well as a greater market share.

The reported case study increases our empirical understanding of the benefits of KM
by UT bank in Ghana. More research is clearly needed to further expand our
understanding of enablers, inhibitors and potential impact of KM across the retail
banking institutions. Based on our explorative study, it is recommended that
quantitative studies should be designed and conducted, as well as comparative studies
to further understand the importance of contextual elements with the KM value chain
and to add to the extant KM literature.

8. References

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About the Authors:

Michael Asiedu Gyensare is an MBA/MPhil (Human Resource Management option)

candidate at the Department of Organisation & Human Resource Management,
University of Ghana Business School,Legon. He received his Bachelor of Education
(Hons) (Economics major) from University of Cape Coast, Ghana and a Distinction
Diploma in Project Management from the Institute of Commercial Management
(ICM), UK. He is currently, a Senior Research Assistant with the Department of
Educational Foundations, University of Cape Coast. He can be contacted on Mob:
+233244863135; E-mail:[email protected]

Joan-Ark Asare holds Msc. Certificate in Human Resource Management from

Sheffield Hallam University, UK. She received her Bachelor of Arts, Social Science
(Hons) (Sociology Major, Economics and Business Management Minor) from the
University of Cape Coast, Ghana. Her professional qualifications are Chartered
Institute of Personnel and Development, an Associate Professional Membership
Certificate (CIPD, UK) and Cambridge International Examinations Certificate (Young
Enterprise International Examination-Distinction).She is currently a
Principal Administrative Assistant with the Department of Classics and Philosophy,
University of Cape Coast. Mob: +233272570920; E-mail: [email protected]
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