THE IMPACT OF KNOWLEDGE MANAGEMENT ON THE PROFITABILITY OF BANKS IN NIGERIA (CASE STUDY OF FIRST BANK NIGERIA AND GUARANTY TRUST BANK NIGERIA)

Abstract

In today's fast-paced business world, knowledge management is critical. Knowledge management is the act of producing, distributing, and utilising knowledge within an organization in order to provide people with the information they need to do their jobs effectively. Banks with effective knowledge management practices will be able to improve their performance and hence increase their profitability. The secondary data is informed by the works of; Abusweilem and Abualous (2019), Shih et al (2010), Grimsdottir and Edvardsson (2018), Ikechukwu (2016), Omotayo (2015), Jayasundara (2008). ‘Any organization that dynamically deals with a changing environment ought not only to process information efficiently but also create information and knowledge’ (Nonaka 1994). ‘To gain competitive advantage, banks must use the knowledge management concept as a purposeful asset key to product and process innovation, executive decision-making, and organizational adaptation and renewal,' according to Gakuo (2017). This study investigates knowledge management in the Nigerian banking sector and how it is implemented with selected banks in Nigeria, Lagos. In this study, a qualitative data analysis was employed. The study's population was n=5, and the primary data was collected through a semi-structured interview with a total of 16 open-ended questions. The findings revealed that in Nigerian banks and other companies, knowledge management is a critical success element. It has a major influence on Nigerian banks' profitability as well as the services they provide to their clients. When it comes to implementing knowledge management, however, the chosen Nigerian banks confront a variety of obstacles. In conclusion, the study recommends that banks invest more in knowledge management, that bank workers should not hoard essential organizational knowledge, and that banks optimize how vital information reaches all employees in a timely manner.