The Impact of Knowledge Management on Strategic Decision-Making: A Field Study in the General Administration of Jumhouria Bank – Tripoli

Abstract

This study investigates the impact of knowledge management on strategic decision-making within the General Administration of the Republic Bank in Tripoli, Libya. The research addresses a critical gap where banking institutions struggle to effectively utilize organizational knowledge to support long-term strategic choices despite shifting toward modern management styles. The researcher adopted a descriptive-analytical methodology to examine the relationship between the four primary dimensions of knowledge management acquisition, storage, distribution, and application and the effectiveness of strategic decisions. Data were collected via a structured questionnaire distributed to a sample of 155 employees representing various administrative levels, including department managers and heads of sections. Statistical analysis, conducted through SPSS using Cronbach's Alpha for reliability and weighted averages for trend identification, revealed that all dimensions of knowledge management received positive assessments ranging from "good" to "excellent". Specifically, knowledge storage achieved the highest weighted average (4.28), followed by application, distribution, and acquisition. The findings confirmed a significant positive correlation between the implementation of knowledge management processes and the quality of strategic decision-making, thereby supporting the study's main and subsidiary hypotheses. While the reliance on internal expertise was high, the results indicated a moderate level of external stakeholder involvement in the decision-making process. Based on these results, the study recommends enhancing continuous training programs, developing robust electronic database infrastructures with high security standards, and fostering a culture of internal knowledge sharing through collaborative technology. Effective knowledge utilization is concluded to be a fundamental driver for improving institutional performance and reducing uncertainty in the competitive Libyan banking sector.