Research Article | | Peer-Reviewed

Knowledge-Based Dynamic Capabilities and Competitive Advantage: In Case of Commercial Bank of Ethiopia

Received: 12 October 2023    Accepted: 27 October 2023    Published: 21 November 2023
Views:       Downloads:
Abstract

The main goal of this study was to understand how knowledge-based dynamic capabilities contributed to Commercial Bank of Ethiopia's competitive advantage from the perspective of practitioners. The rational of this study is to explore the concepts of both Knowledge & dynamic capability views which have not yet been combined into a single framework. Consequently, a qualitative interpretive and cross sectional research design were used. Also semi-structured in-depth interview were made with nine district human resource directorate managers to collect data. Data obtained from interview were analyzed based on the thematic methods of the areas. The interview was completely converted into a record & the records were reviewed in detail and notes were taken. The findings of the study shows that knowledge based dynamic capability can enhance the competitive advantage of an organization by combining the dimensions of knowledge capability and dynamic capability. The knowledge process capability dimensions are crucial for enhancing an organization's competitive advantage, according to the interview's findings. The same is true for the dynamic capability dimensions, such as absorptive, innovative, and adaptive capabilities, which are crucial for competitive developments. Additionally, combining knowledge capabilities dimensions with dynamic capabilities dimensions can strengthen the competitive advantage. Lastly the study suggested that knowledge based dynamic capability has to be extensively researched to fill the evidence based literature gap.

Published in International Journal of Science and Qualitative Analysis (Volume 9, Issue 2)
DOI 10.11648/j.ijsqa.20230902.11
Page(s) 32-38
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Knowledge Process Capability, Dynamic Capability, Knowledge Based Capability & Competitive Advantage

References
[1] Abas, Z., & Jali, M. wN. (2015). Understanding Knowledge Management in Developing Emerging Concept of Innovation and Technology into Business : Conceptual Review and Empirical Evidence. International Academic Research Journal of Business and Technology, 1 (2), 149–164.
[2] Acedo, F. J., Barroso, C., & Galan, J. L. (2006). The resourcebased theory: dissemination and main trends. Strategic Management Journal, 27 (7), 621- 636.
[3] Adeniran, T. V., & Johnston, K. A. (2012). Investigating the dynamic capabilities and competitive advantage of South African SMEs. African Journal of Business Management, 6 (11), 4088-4099.
[4] Allred, C. R., Fawcett, S. E., Wallin, C., & Magnan, G. M. (2011). A Dynamic Collaboration Capability as a Source of Competitive Advantage. Decision Sciences, 42 (1), 129–162.
[5] Andersén, J. (2012). Protective capacity and absorptive capacity: Managing the balance between retention and creation of knowledge-based resources. The Learning Organization, 19 (5), 440–452.
[6] Arend, R. J., & Bromiley, P. (2009). Assessing the dynamic capabilities view: spare change, everyone? Strategic Organization, 7 (1), 75–90.
[7] Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17 (1), 99–120.
[8] Barrales-molina, V., Martínez-lópez, F. J., & Gázquez-abad, J. C. (2014). Dynamic Marketing Capabilities : Toward an Integrative Framework. International Journal of Management Reviews, 16, 397–416.
[9] Braun, V. a. C. V., 2006. Using thematic analysis in psychology. Qualitative research in psychology, 3 (2), pp. 77-101.
[10] Breznik, L., & Lahovnik, M. (2014). Renewing the resource base in line with the dynamic capabilities view: A key to sustained competitive advantage in the IT industry. Journal for East European Management Studies, 19 (4), 453–485.
[11] Castiaux, A. (2012). Developing dynamic capabilities to meet sustainable development challenges. International Journal of Innovation Management, 16 (6), 1–17.
[12] Chaharmahali, S. M., & Siadat, S. A. (2010). Achieving Organizational Ambidexterity: Understanding and explaining ambidextrous organisation.
[13] Denford, J. S. (2013), “Building knowledge: developing a knowledge-based dynamic capabilities typology”, Journal of Knowledge Management, Vol. 17 No. 2, pp. 175-194.
[14] Easterby-Smith, M. and Prieto, I. M. (2008), “Dynamic capabilities and knowledge management: an integrative role for learning?”, British Journal of Management, Vol. 19 No. 3, pp. 235-249.
[15] Foss, N. J., & Pedersen, T. (2004). Organizing knowledge processes in the multinational corporation: an introduction. Journal of International Business Studies, 35 (5), 340–349.
[16] Garg, R., & De, K. (2012). Impact of dynamic capabilities on the export orientation and export performance of small and medium sized enterprises in emerging markets: A conceptual model. African Journal of Business Management, 6 (29), 8464–8474.
[17] Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17 (S2), 109–122.
[18] Hegazy, F. M., & Ghorab, K. E. (2014). The Influence of Knowledge Management on Organizational Business Processes’ and Employees' Benefits. International Journal of Business and Social Science, 5 (1), 148–172.
[19] Helfat, C. E., & Peteraf, M. A. (2009). Understanding dynamic capabilities: progress along a developmental path. Strategic Organization, 7 (1), 91–102.
[20] Hick, R. C. (2006). The Five Tier Knowledge Management Hierarchy. Journal of Knowledge Management Practice, X, NO. 1, 19-27.
[21] Hong, J., Kianto, A., & Kyla, K. (2008). Moving Cultures and the Creation of New Knowledge and Dynamic Capabilities in Emerging Markets. Knowledge and Process Management, 15 (3), 196–202.
[22] Kaur, V., & Mehta, V. (2016). Knowledge-Based Dynamic Capabilities: A New Perspective for Achieving Global Competitiveness in IT Sector. Pacific Business Review International, 1 (3), 95-106.
[23] Lee, P., Wu, M., Kuo, C., & Li, C. S. (2016). How to deploy multiunit organizations’ dynamic capabilities? Management Decision, 54 (4), 965–980.
[24] Liew, A. (2007), Understanding Data, Information, Knowledge and Their Inter Relationships. Journal of Knowledge Management Practice, VII, No. 2, 102-122.
[25] Li, D. Y., & Liu, J. (2014). Dynamic capabilities, environmental dynamism, and competitive advantage: Evidence from China. Journal of Business Research, 67 (1), 2793–2799.
[26] Liu, S., & Deng, Z. (2015). Understanding knowledge management capability in business process outsourcing: A cluster analysis. Management Decision, 53 (1), 1–11.
[27] Ljungquist, U. (2014). Unbalanced dynamic capabilities as obstacles of organisational efficiency: Implementation issues in innovative technology adoption. Innovation: Management, Policy & Practice, 16 (1), 82–95.
[28] Michailova, S., & Zhan, W. (2014). Dynamic capabilities and innovation in MNC subsidiaries. Journal of World Business, 1–9.
[29] Mohammad, H. H., Mohammad, F. H., Ali, S., & Ali, N. B. (2014). Investigating the Influence of Knowledge Management Practices on Organizational Performance : An Empirical Study. International Journal of Science and Research, 3 (10), 355– 360.
[30] Nielsen, A. P. (2006). Understanding dynamic capabilities through knowledge management. Journal of Knowledge Management, 10 (4), 59–71.
[31] Nieves, J., & Haller, S. (2014). Building dynamic capabilities through knowledge resources. Tourism Management, 40 (February), 224–232.
[32] Ogunkoya, A., Hassan, B. A., & Shobayo, P. A. (2014). Dynamic Capabilities And Competitive Advantage : An Analysis Of The Nigerian Banking Sector. Journal of Accounting and Management, 4 (2), 29–36.
[33] Ouyang, Y. (2015). A Cyclic Model for Knowledge Management Capability-A Review Study. Arabian Journal of Business and Management Review, 5 (2), 1–9.
[34] Ray, G., Barney, J. B., & Muhanna, W. A. (2004). Capabilities, business processes, and competitive advantage: Choosing the dependent variable in empirical tests of the resource-based view. Strategic Management Journal, 25, 23-37.
[35] Sandhawalia, B. S., & Dalcher, D. (2011). Developing knowledge management capabilities: A structured approach. Journal of Knowledge Management, 15 (2), 313–328.
[36] Senaji, T., & Nyaboga, A. (2011). Knowledge Management Process Capability: Operations Strategy Perspective. International Journal of Management & Information Systems, 15 (3), 147–158.
[37] Shahzad, K., Faisal, A., Farhan, S., Sami, A., Bajwa, U., & Sultani, R. (2016). Integrating knowledge management (KM) strategies and processes to enhance organizational creativity and performance: an empirical investigation. Journal of Modelling in Management, 11 (1), 1–34.
[38] Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18 (7), 509–533.
[39] Wang, C. L., Senaratne, C., & Rafiq, M. (2015). Success Traps, Dynamic Capabilities and Firm Performance. British Journal of Management, 26, 26–44.
[40] Wilkens, U., Menzel, D., & Pawlowsky, P. (2004). Inside the Black-box: Analysing the Generation of Core Competencies and Dynamic Capabilities by Exploring Collective Minds. An Organizational Learning Perspective. Management Review, 15 (1), 8–27.
[41] Wójcik, P. (2015). Exploring Links Between Dynamic Capabilities Perspective and Resource-Based View: A Literature Overview. International Journal of Management and Economics, 45 (1), 83–107.
[42] Zheng, S., Zhang, W., & Du, J. (2011). Knowledge-based dynamic capabilities and innovation in networked environments. Journal of Knowledge Management, 15 (6), 1035–1051.
[43] Zhan, W., & Chen, R. R. (2013). Dynamic capability and IJV performance: The effect of exploitation and exploration capabilities. Asia Pacific Journal of Management, 30, 601–632.
[44] Creswell, J. (2002). Educational research: Planning, conducting, and evaluating Quantitative and Qualitative research. Upper Saddle River, NJ: Merrill Prentice Hall.
[45] Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: An expanded sourcebook (2nd ed.). Sage Publications, Inc.
Cite This Article
  • APA Style

    Tariku Wadajo, F., Amentie Kero, C. (2023). Knowledge-Based Dynamic Capabilities and Competitive Advantage: In Case of Commercial Bank of Ethiopia. International Journal of Science and Qualitative Analysis, 9(2), 32-38. https://doi.org/10.11648/j.ijsqa.20230902.11

    Copy | Download

    ACS Style

    Tariku Wadajo, F.; Amentie Kero, C. Knowledge-Based Dynamic Capabilities and Competitive Advantage: In Case of Commercial Bank of Ethiopia. Int. J. Sci. Qual. Anal. 2023, 9(2), 32-38. doi: 10.11648/j.ijsqa.20230902.11

    Copy | Download

    AMA Style

    Tariku Wadajo F, Amentie Kero C. Knowledge-Based Dynamic Capabilities and Competitive Advantage: In Case of Commercial Bank of Ethiopia. Int J Sci Qual Anal. 2023;9(2):32-38. doi: 10.11648/j.ijsqa.20230902.11

    Copy | Download

  • @article{10.11648/j.ijsqa.20230902.11,
      author = {Fanta Tariku Wadajo and Chalchisa Amentie Kero},
      title = {Knowledge-Based Dynamic Capabilities and Competitive Advantage: In Case of Commercial Bank of Ethiopia},
      journal = {International Journal of Science and Qualitative Analysis},
      volume = {9},
      number = {2},
      pages = {32-38},
      doi = {10.11648/j.ijsqa.20230902.11},
      url = {https://doi.org/10.11648/j.ijsqa.20230902.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijsqa.20230902.11},
      abstract = {The main goal of this study was to understand how knowledge-based dynamic capabilities contributed to Commercial Bank of Ethiopia's competitive advantage from the perspective of practitioners. The rational of this study is to explore the concepts of both Knowledge & dynamic capability views which have not yet been combined into a single framework. Consequently, a qualitative interpretive and cross sectional research design were used. Also semi-structured in-depth interview were made with nine district human resource directorate managers to collect data. Data obtained from interview were analyzed based on the thematic methods of the areas. The interview was completely converted into a record & the records were reviewed in detail and notes were taken. The findings of the study shows that knowledge based dynamic capability can enhance the competitive advantage of an organization by combining the dimensions of knowledge capability and dynamic capability. The knowledge process capability dimensions are crucial for enhancing an organization's competitive advantage, according to the interview's findings. The same is true for the dynamic capability dimensions, such as absorptive, innovative, and adaptive capabilities, which are crucial for competitive developments. Additionally, combining knowledge capabilities dimensions with dynamic capabilities dimensions can strengthen the competitive advantage. Lastly the study suggested that knowledge based dynamic capability has to be extensively researched to fill the evidence based literature gap.
    },
     year = {2023}
    }
    

    Copy | Download

  • TY  - JOUR
    T1  - Knowledge-Based Dynamic Capabilities and Competitive Advantage: In Case of Commercial Bank of Ethiopia
    AU  - Fanta Tariku Wadajo
    AU  - Chalchisa Amentie Kero
    Y1  - 2023/11/21
    PY  - 2023
    N1  - https://doi.org/10.11648/j.ijsqa.20230902.11
    DO  - 10.11648/j.ijsqa.20230902.11
    T2  - International Journal of Science and Qualitative Analysis
    JF  - International Journal of Science and Qualitative Analysis
    JO  - International Journal of Science and Qualitative Analysis
    SP  - 32
    EP  - 38
    PB  - Science Publishing Group
    SN  - 2469-8164
    UR  - https://doi.org/10.11648/j.ijsqa.20230902.11
    AB  - The main goal of this study was to understand how knowledge-based dynamic capabilities contributed to Commercial Bank of Ethiopia's competitive advantage from the perspective of practitioners. The rational of this study is to explore the concepts of both Knowledge & dynamic capability views which have not yet been combined into a single framework. Consequently, a qualitative interpretive and cross sectional research design were used. Also semi-structured in-depth interview were made with nine district human resource directorate managers to collect data. Data obtained from interview were analyzed based on the thematic methods of the areas. The interview was completely converted into a record & the records were reviewed in detail and notes were taken. The findings of the study shows that knowledge based dynamic capability can enhance the competitive advantage of an organization by combining the dimensions of knowledge capability and dynamic capability. The knowledge process capability dimensions are crucial for enhancing an organization's competitive advantage, according to the interview's findings. The same is true for the dynamic capability dimensions, such as absorptive, innovative, and adaptive capabilities, which are crucial for competitive developments. Additionally, combining knowledge capabilities dimensions with dynamic capabilities dimensions can strengthen the competitive advantage. Lastly the study suggested that knowledge based dynamic capability has to be extensively researched to fill the evidence based literature gap.
    
    VL  - 9
    IS  - 2
    ER  - 

    Copy | Download

Author Information
  • Department of Management, College of Business and Economics, Wollega University, Nekemte, Ethiopia

  • Department of Management, College of Business and Economics, Jimma University, Jimma, Ethiopia

  • Sections