The Effect of Knowledge Management on Organizational performance in Commercial Bank of Ethiopia Dire Dawa city Branches

The purpose of this study was to examine the effect of knowledge management on organizational performance in commercial bank of Ethiopia Dire Dawa city branches. This study was employed a both descriptive and explanatory research design to examine the effect of knowledge management. This study used quantitative research approach and the study used a self administered questionnaire instrument that was distributed to employees of commercial bank of Ethiopia to meet the main objectives. The study was used simple random method. From the total population of 710 employees of CBE the study was selected 330 respondents who currently working in CBE Dire Dawa city branches. Using SPSS software version 25 for data analysis, descriptive statistics such as frequency, percentage, mean, and standard deviation were used and inferential statistics to analyze the relationship between dependent and independent variables. In this study knowledge management mediators (organizational structure, IT), and knowledge management process; knowledge creation, knowledge transfer, knowledge application and storing treated as independent variables and organizational performance was treated as dependent variable. The study findings shows that components of knowledge management mediators organizational structure and information technology has positive effect on organizational performance but not significant. Knowledge management process components (knowledge creation, storing, transfer, and application) have positive and significant effect on organizational performance. The study recommended CBE paying greater attention to work knowledge management to enhance decision-making, stimulate innovation, boost customer satisfaction, and grow market share while earning a competitive advantage