A. KNOWLEDGE MANAGEMENT
The field of knowledge management (KM) encompasses several techniques related to the acquiring, distributing, utilization, and storing of an organization's knowledge(Bayari et al., 2022; Urban & Matela, 2022; &Yu et al., 2022). According to Kaira & Phiri (2022)& Abusweilem & Abualoush(2019)describes a multidisciplinary strategy that maximizes knowledge utilization to accomplish organizational goals.In many corporate groups, knowledge management, or KM, is a popular topic. There are many differing views regarding the precise meaning of knowledge management and its appropriate application, if any, despite the term's apparent simplicity. But with company development happening at an ever-increasing rate, managing companies effectively and competitively becomes crucial. Knowledge management (KM), when done right, can be both a helpful instrument for business transformation and the secret to competitive advantage(Nazari et al., 2022;Audretsch et al., 2020;&Heisig et al., 2016).
Determinant of knowledge management
The acquisition, distributing, storage, and usage of knowledge are factors that influence knowledge management when it comes to the organization's knowledge management implementation(Bayari et al., 2022 andYu et al., 2022).
Knowledge Acquiring
Knowledge acquisition is the process of obtaining data from one or more sources, organizing it, and transferring it to a knowledge base or, on occasion, an inference engine(Hujala & Laihonen, 2021)(Wijaya & Suasih, 2020). This process has been identified by several academics and experts as a major impediment. Similarly, according to Yu et al. (2022) the process of gathering, assimilation, and integration of new information and knowledge is referred to as knowledge acquisition. Additionally, It entails actively seeking out and acquiring knowledge via a variety of channels, including reading, study, training, and hands-on instruction(Wijaya & Suasih, 2020&Daengs GS et al., 2019).
Knowledge Distributing
The sum of all the knowledge held by members of a community of agents is known as distributed knowledge(Ajoke et al., 2022;Hidayah, 2019;&Kim & Park, 2017). According, Silva de Garcia et al. (2022)& Alqahtani et al. (2022)the idea of distributed knowledge is distinct from the notion of wisdom of the crowd in that the latter is focused on opinions rather than facts. The consensus that develops from several actors is known as the wisdom of the crowd. Similarly, Zhang et al.(2022)& Soltani et al. (2020) the procedure of allotment of explicit known how with persons, groups, or society is referred to as distribution of knowledge. This distribution of knowledge based procedure maybe be embedded, based on idea and experiences sharing among peer groups.
Knowledge Storing
Knowledge storing is the procedure of accumulate managerial and person understanding in a database design that makes it easily accessible. Thus easy to update and decode (Bayari et al., 2022; Matrood et al., 2021 & Li et al., 2020). In a similar vein, knowledge is usually kept in the form of databases, reports, and documents in a knowledge repository(Tadesse, 2020&Ahmed et al., 2015). To effectively and conveniently arrange this content, specialized software tools are available. Furthermore, it refers to how information is kept at the stage of organizational memory formation(Osayande, 2021;Adhikari, 2020; &Khanal & Paudyal, 2018).
Knowledge Use
A practical ability, a familiarity with people and situations, or an awareness of facts is all considered forms of knowledge(Grabowska & Saniuk, 2022 andAhmed et al., 2015). According, Jones et al. (2022) and Khoualdi & Binibrahim (2019) explain that propositional knowledge, another name for knowledge of facts, is commonly defined as a real belief that is justified and separate from opinion or conjecture. Similarly, Nazari et al. (2022) state that an application of knowledge to business opportunities or decisions is known as knowledge use. Additionally, use is recursive, producing feedback continuously that influences and is incorporated into the other knowledge-based processes(Priyanto & Murwaningsari (2022) and Silva, 2019). Furthermore, knowledge advances organizational competence based on reasoning and analytical capabilities and also founded acquaintance foundation facilitates for the more proficient and successful databases for decision support systems (Kazak, 2021; Usman, 2020; &Yoshikuni & Albertin, 2018).
B. KEY CUSTOMER FOCUS
According to Setiyaji et al. (2022) described customer focus refers to giving customers' wants and opinions top priority. Companies’ that give preferences to their clients nurtured a ethical and relation based ecosystem that is dedicated to raising buyer fulfillment and founding a trust based relations with both present and prospects customer’s (Islami et al., 2020 and Nigist, 2017). Furthermore, a firm that prioritizes its customers bases its values, mission, and culture on them(Abrokwah-Larbi, 2023). By anticipating their needs, fostering pleasant interactions, and making adjustments in response to feedback from clients, these companies aim to increase customer happiness (Hanaysha & Mehmood, 2022 and Nouman Saeed& Dr. Naimat Ullah Khan, 2021). The industry is always coming up with new ideas to give its clients better experiences and services, like one-day shipping and a very customer-friendly returns policy, among many other things(Savira et al., 2022).
Determinant of Key Customer Focus
The product quality, service quality, and reward are factors that influence key customer focus when it comes to the industry’s key customer focus implementation(Hanaysha & Mehmood, 2022 and Islami et al., 2020).
Product quality
A product is what is being offered for sale (Pahirathan, 2022). A product can be an item or an offering that can be found in real life, online, or virtually. It also has a price at which it can be purchased. When evaluating the quality of a good or service, businesses consider a number of critical factors, including whether the product meets the expectations of the customer, resolves a problem, or functions well. Furthermore, the degree to which an excellent service, or combination of them, fulfills a need or solves an issue, is a measure of product quality(Langat & Atheru, 2023; Enad & Gerinda, 2022; & Anayochukwu Nwankwo et al., 2019).
Service quality
Service quality is defined as how well a service meets or exceeds the demands and requirements of the customer (Abrokwah-Larbi, 2023). It is affected by the technical as well as the emotional aspects of the service, such as accuracy, speed, and reliability, as well as the emotional aspects like responsiveness, empathy, and politeness. Moreover, service quality evaluates how well a business satisfies the needs and wants of its clients. Any businesses that want to grow must first learn how to improve the standard of the product and services it offers (Savira et al., 2022).
Reward system
Any mix of financial, non-financial, and psychological advantages that a company provides to its customers is a reward system (Hanaysha & Mehmood, 2022). It also serves as a tool for customer motivation and retention. Extrinsic and intrinsic incentives are both possible in reward systems. Giving a customer a gift or cash bonus for providing excellent customer satisfaction is known as a rewards program in market share increasing(Islami et al., 2020 and Nigist, 2017).
C. COMPETITIVE ADVANTAGE
A company's capacity to manufacture goods or services more effectively or inexpensively than the rivals is commonly referred to as possessing a competitive advantage (Musonnafa & Djazuli, 2022&Waithaka, 2020). According to Kibebe M'mbwanga & Anyieni, 2022 & Noermijati, 2018, these components allow the profitable company to surpass its rivals in the market in terms of sales or profit marginalization. Additionally, anything that gives a company an edge over competitors allows it to attract more customers and grow its share of the market (Alqershi et al., 2020&Alshura, 2018). Three primary mechanisms exist for a competitive advantage to appear: Cost advantage is the capacity to manufacture an item or offer a service for a smaller amount than rivals (Musonnafa & Djazuli, 2022; Waithaka, 2020; &Noermijati, 2018).
Determinant of Competitive Advantage
One of the following three main approaches can be used by a company to gain a competitive edge: Cost: Provide goods at the lowest possible cost. Offer goods or services that stand out from the competition in terms of features, quality, or offerings. Focus: Provide goods and services that are especially designed with a particular market in mind (Musonnafa & Djazuli, 2022; Waithaka, 2020; &Noermijati, 2018).
Cost Leadership Strategy
According to Kant (2023), Niyi et al. (2022), and Alqershi et al. (2020), "cost leadership" describes a business strategy in which an organization positions itself as the least expensive producer or supplier of a particular good or service in a market. This approach is difficult to implement because management must constantly reduce costs at all levels in order to remain competitive. Without noticeably lowering revenue, a corporation must successfully cut costs in all other areas of the business, such as marketing, distribution, and packaging (Skordoulis et al., 2022&Kimiti et al., 2021).A company may also demonstrate cost leadership by being the best in its category at offering low pricing (Maurice et al., 2022; G. Kimiti et al., 2020; Roy, 2019;& Atikiya, 2015).
Differentiation Strategy
Offering customers something that distinguishes them from goods that their rivals may sell in the market is the basis of a differentiation strategy (Farida & Setiawan, 2022 and Irungu et al., 2020). The main objective of implementing a differentiation strategy is to increase competitive advantage (Bankole et al., 2022). Additionally, companies that make investments to raise the caliber of their goods benefit from lower costs and stronger competitiveness(Al Khasabah et al., 2022; Priyanto & Murwaningsari, 2022; &Nyoman et al., 2020) this is because improvements in quality not only raise customer happiness but also result in cost savings that allow for higher profits or a competitive edge at the point of sale. Furthermore, over time, a long-term partnership with a happy client might provide a substantial amount of cash for the bank. Competitive Advantage: Offering top-notch customer service can set you apart in the highly competitive banking industry(Bhandari & Amponstira, 2021&Hariandi et al., 2019).
Focus Strategy
Developing, promoting, and selling goods to a certain consumer segment, product line, or geographic location is known as a focus strategy(Gintings et al., 2021&Wijaya & Suasih, 2020). A focused plan would try to build a fresh association with present target audience while concentrating on expanding present company's marketing strategies. Additionally, because workers are reallocated to areas where they can contribute the greatest value, artificial intelligence and machine learning help businesses cut expenses and increase efficiency(Mustikowati et al., 2021; Amer & Abdulwahhab, 2020;Alshura, 2018; &Zaky, 2017). AI is being used by insurers to do underwriting, handle claims, and evaluate risk in novel ways, among other things. Similar to this, company management software, the implementation of effective information systems, and the automation of repetitive and routine tasks can all help to simplify internal processes and save operating expenses(Musonnafa & Djazuli, 2022; Waithaka, 2020; &Noermijati, 2018). This will enable you to charge a price for present goods or services that is lower than that of present rivals.
D. BUSINESS PERFORMANCE
In the contemporary workplace, business performance refers to an organization's ability to achieve goals in a constantly evolving environment (Hanaysha & Mehmood, 2022;Nithya & Kiruthika, 2021;&Rezaei et al., 2021).The degree to which an organization successfully puts itself on the business market with some sale growth, market share, customer satisfaction, and internal capability is referred to as business performance(Mantje et al., 2023;Wijaya & Suasih, 2020;&Anayochukwu Nwankwo et al., 2019) also capacity of an organization to maximize outcomes and accomplish its objectives. The achievement of quantifiable objectives would be a simple definition of performance (Nithya & Kiruthika, 2021). But performance is more than simply achieving goals; it's also about the means by which individuals reach those goals.
Determinant of Business Performance
The banking industry uses a variety of measures to assess corporate success. According to Wijaya & Suasih, (2020)&Anayochukwu Nwankwo et al., (2019), performance is defined as "the worth or capability" of a company given to its clients and shareholders to produce results. Similarly, business performance is divided into two distinct categories: financial performance (sale growth) and non-financial performance (market share, customer satisfaction, and internal capability). The Balanced Scorecard (BSC), which emphasizes sale growth, market share, customer satisfaction and internal capability, is also used to evaluate business performance (Hanaysha & Mehmood, 2022&Nithya & Kiruthika, 2021).
Sale Growth
Sales in the banking sector vary significantly from the conventional strategy of convincing a consumer to purchase a product(Al Khasabah et al., 2022). In this field, establishing trust with clients, offering assistance with money concerns, and resolving their issues are all part of the sales process. Sales growth is the term used to describe the steady rise in a product or service's sales (Gopalsamy & Gokulapadmanaban, 2021). It gauges a company's performance about sales revenue (Fakhrunnisa et al., 2023), which have to comparing year-over-year, quarter-over-quarter, or month-over-month sales can be used to calculate sales growth. Additionally, sales growth depicted the rate at which a business has increased sales (Wijaya & Suasih, 2020)and the percentage change in sales during a specified period is used to measure it.
Market share
According to Hanaysha and Mehmood (2022), a business's share of the market is its proportion of total sales within its industry. When a firm has a bigger market share and gives an understanding of its market share and level of dominance within its industry, its revenues in that sector are higher compared to that of its competitors (Gopalsamy & Gokulapadmanaban, 2021). In a similar vein, market share describes the percentage or part of a market that a business or organization has acquired(Wijaya & Suasih, 2020). Furthermore, market share represents the portion of a market that a company or brand controls and is indicative of both dominance and competition to provide information about preferences, trends, and future growth prospects(Anayochukwu Nwankwo et al., 2019).
Customer satisfaction
Diverse scholars have provided distinct definitions of customer satisfaction. Customer satisfaction is the degree to which a person feels pleased or disappointed with a product after comparing its perceived performance (or result) to what they had anticipated and also to measurement of a client's contentment with a company's goods, services, and capabilities(Fakhrunnisa et al., 2023; Rezaei et al., 2021;and Wijaya & Suasih, 2020). A company can determine the best way to change or enhance its products and services by using customer satisfaction data, such as surveys and ratings (Kant, 2023). Furthermore, customer satisfaction is calculated as follows: customer expectation of service - customer impression of the service received (Alkhatib et al., 2022). This makes it simple to draw the broad conclusion that customers will be satisfied if they feel they received better service than they had anticipated.
Internal capability
A crucial bank enabler and strategic asset is the banking business capabilities model. A perfect storm is sweeping throughout the globe's banks, which are battling a plethora of issues arising from different macroeconomic and microeconomic patterns. Accordingly, internal capability describes the organizational capabilities, skill set, and resources that a business has on its own to accomplish a goal(Alkhatib et al., 2022 and Ginting, 2020). According to Rezaei et al. (2021) an internal capacity is any task or procedure that can be effectively completed by an organization's internal teams. You can do an internal capability review to determine your current advantages and disadvantages. They also comprise organizational structures and procedures, personnel skills and expertise, and tangible assets like buildings, machinery, and inventory.