The Impact of Knowledge Management Processes on Service Innovation: A study on Commercial Banks

This study explores the relationship between knowledge management practices (KMP) and service innovation within the banking sector of Sudan. Rooted in the Knowledge- Based View (KBV) framework, this study examines how knowledge acquisition, sharing, application, and storage contribute to both incremental and radical service innovation. KMP are widely acknowledged as key factors influencing organizational performance, productivity, and competitive edge. To assess their influence on service innovation, including both radical and incremental types, a survey was utilized to gather data from the target population. Exploratory factor analysis (EFA) was utilized to examine the underlying structure of the data, followed by multiple regression analysis conducted using the Statistical Package for the Social Sciences (SPSS) to test the proposed hypotheses. The findings revealed a positive yet statistically insignificant relationship between knowledge acquisition and both radical and incremental innovation. Conversely, a significant and positive association was observed between knowledge sharing and both types of service innovation. Likewise, knowledge storage showed a positive association with both radical and incremental innovation. To conclude, the findings demonstrate a partial correlation between KMP and service innovation.