Abstract:

In the era of the knowledge-based economy, knowledge has been widely recognized as a critical source of innovation to produce knowledge-intensive and services. In such economy, the ability of the organization to create new knowledge is the most important source of organization to sustain its competitive advantage. The purpose of this paper is to examine the influence of knowledge creation process (KCP) on organizational performance in the framework of four perspectives of balance scored card (BSC) in the Saudi banking sector, as one of the knowledge-intensive sectors. The study used a cross-sectional questionnaire survey design, and its hypotheses were tested using structural equation modeling. The study results revealed that KCP positively impact overall organizational performance. The results also showed that the “financial perspective” and internal business process perspective’ are more likely to be associated with Saudi banks performance in terms of knowledge creation process.