Bewertung des Arabian Journal of Business and Management

Customer Knowledge Management (CKM) as a Predictor of Innovation Capability with the Moderating Role of Organizational Structure: A Study of the Banking Sector of Pakistan

Abstract

Zaidi AN

Purpose: The purpose of the study was to investigate the impact of CKM on innovation capability of the private banks of Pakistan under the moderating role of organizational structure. Design/Methodology/Approach: The data have been collected via questionnaires distributed among the 400 employees (Officer Grade) of private banks in the Southern Punjab, Pakistan. The Feedback was received by the 301 employees. Hypotheses were tested using “Multiple Regression Analysis”. Findings: The results of the study indicate that Customer Knowledge Management (knowledge from customer, knowledge about customer and knowledge for customer) has positive impact on the innovation capability (innovation speed and innovation quality) with the moderating role of the organizational structure. Research limitations/implications: The basic precautions are kept in consideration to make the research free from those errors which may cause interruption in data analysis and interpretation. But in spite of all the carefulness, there were some limitations which caused hurdles in the smooth working of the research. The main of the limitation was that the targeted population in collection of the data were restricted to the private banks of Southern Punjab, as it was very complex to capture the data from the whole province or the country within the available resources. Moreover, respondents of the understudy organizations were reluctant and hesitant in providing appropriate information regarding banks because of organizational privacy policies. Lastly, the study was restricted to only few variables Like CKM, Organizational structure, Innovation capability and Business performance as more variables like organizational learning can also be added as moderating variable in the study. Practical implications: The consequences of this research will be helpful for the business organizations to attain their target goals by adding customers’ knowledge and ideas into their policies and practices. This will provide applicable guidelines to the banks to implement CKM principles into their system to be more innovative and creative. This research will also prove beneficial for the banks because it provides logical reason of giving value to the stakeholders of the firm like customers and employees. Originality/Value: CKM is a new concept which is introduced in the research as competitive advantage for the banks in the Pakistan. As if the banks take customer’s feedback into consideration, it will lead towards less wastage of resources and improved business performance.