The Effect of Knowledge Management Critical Success Factors on Knowledge Management Effectiveness and Performance : An Empirical Research in Egyptian Banking Sector

Research Purpose: This study identifies and discusses the critical success factors that related to the KM effectiveness within banks, which in turn influence on financial and non-financial performance of the bank. Based on existing frameworks and models, this study outlines the six most important factors that are believed to be critical for KM implementation. Tis paper also investigates the effect of Knowledge Management effectiveness on financial and non-financial performance of Egyptian banks.Research Importance: Knowledge Management has become one of the most important driving forces for Banks success. Knowledge Management helps banks to find, select, organize, distribute, and transfer vital information. Through Knowledge Management effectiveness, banks improve their effectiveness and gain competitive advantage. The development of KM has led to the need of identifying its critical success factors.Design and Methodology: the proposed research model is tested by self- administrated survey to 3 banks, randomly selected, in Alexandria city; from those only 35 answered the questionnaire correctly. The results of the study will help banks to understand the impact that different factors have on the KM successful implementation and how the KM effectiveness effects on financial and non- financial performance.The research questionnaire was tested, and the results illustrate the questionnaire measures is reliable and valid whereas coefficient of Alfa is greater than 0.70. Research Hypotheses is tested by Multiple and simple regression. The main research results are: there is a significant effect of HR practices, leadership, IT, strategy, process on KM effectiveness, but no effect of culture on KM effectiveness. And there is a significant effect of KM effectiveness on financial and non-financial performance but KM effectiveness affected on non-financial performance greater than financial performance