DOI: 10.1002/joe.

21997

FEATURE ARTICLE

The role of organizational culture in knowledge sharing

and transfer in Pakistani banks: A qualitative study

Salman Bashir Memon | Jawaid A. Qureshi | Imdad Ali Jokhio

To identify the elements of organizational culture that support or act as a bar-

rier to corporate knowledge creation, sharing, and transfer, researchers con-
ducted semi-structured interviews with 16 top-level managers in five banks
based in Karachi, Pakistan. The findings reveal that encouraging the exchange
of ideas among employees through social interactions in the workplace facili-
tates the transfer of tacit knowledge. The inability to adapt to new technology,
a lack of awareness of the benefits of effective knowledge management, and
deficiencies in formal language and employee empowerment are among the
main obstacles to knowledge creation and sharing. The study concludes with
suggestions for fostering a culture of leadership where information is easily
transferred, enabling employees at every level to contribute to operational
success.

1 | INTRODUCTION The process of socialization has been shown to not only

The deployment of knowledge is a prime mover of the
global economy (Eder & Trippl, 2019). Indeed, there is a
consensus among knowledge management scholars that
knowledge is the only durable source of competitive
advantage in a gradually competitive world (Bloodgood,
2019). In simple terms, knowledge management has
become a prerequisite for both public and private organi-
zations to gain competitive advantage (Mahdi, Nassar, &
Almsafir, 2019).
In the quickly moving knowledge economy, creative
people and knowledge workers are indispensable. From
an economic perspective, a major shift from the tangible
factors of production of an industrial economy to intangi-
ble factors of production has led management researchers
to focus on the field of knowledge management
(LaFayette, Curtis, Bedford, & Iyer, 2019).
The concept of culture has long been part of the man-
agement science literature. Various authors have
established that culture transpires from social interaction
between groups and members (e.g., Brown & Pehrson,
2019; Hofstede & Hofstede, 2005; Huang & Wang, 2003;
Kitayama, Markus, Matsumoto, & Norasakkunkit, 1997).
strengthen cultural values, but also to create new ideas,
knowledge, and concepts (Haag, Duan, & Mathews,
2010). Thus, the tendency to regard culture as a socially
administered mechanism has various implications. For
example, knowledge culture has a contextual impact on
peoples' behavior, ideas, rules, strategies, technology,
administration, and control. As a result, culture may also
be created or recreated over time (e.g., Huang &
Wang, 2003).
Despite increasing globalization, cultural differences
may affect perceptions and the transfer of knowledge.
Yet, social interaction remains essential to deploying tacit
knowledge. The continuous process of sharing and
observing life or work experiences through social interac-
tion, and of replicating those interactions with learning
by doing, may be the source of knowledge creation, shar-
ing, and transfer (Hadjimichael & Tsoukas, 2019).
It is important to note that social interaction typically
occurs in an aggregated culture in which members of dif-
ferent ethnic or racial backgrounds share their ideas,
emotions, and feelings. As an organizational culture
offers a system of mutual learning, a strong culture
perpetuates tacit knowledge through ongoing social

GBOE. 2020;39(3):1–10. wileyonlinelibrary.com/journal/joe © 2020 Wiley Periodicals, Inc. 1

2 MEMON ET AL.
interaction that could be used to elevate knowledge crea-
tion, sharing, and transfer. For example, organizational cul-
ture tends to regulate individual behavior, which is
important for knowledge creation and exchange. Thus,
organizations should provide an environment in which peo-
ple can utilize their cognitive capacities during workplace
socialization for knowledge creation, sharing, and use.
The continuous process of
sharing and observing life or
work experiences through
social interaction, and of
replicating those interactions
with learning by doing, may
be the source of knowledge
creation, sharing, and
transfer.
A cordial knowledge culture is fundamental to knowl-
edge creation, sharing, and transfer. Such a culture sup-
ports and fosters communication and cooperation among
people to encourage knowledge streams and to facilitate
creative problem-solving (Memon, Syed, & Arain, 2017).
In recent years, banks and other financial organiza-
tions have been recognized as fundamental drivers of
innovation and change. Therefore, it is essential for these
organizations to adopt a knowledge management system
that will enable them to remain competitive in the fast-
paced environment of the twenty-first century (Memon,
Rizvi, & Amir, 2017; Sachdeva, 2019). Like those in many
other industries, companies in the financial sector have
embraced automation to facilitate knowledge creation,
sharing, and transfer. Although previous studies have
covered various aspects of knowledge management in
banking, they have not addressed the role of organiza-
tional culture as an antecedent to the creation and trans-
fer of knowledge.
To determine whether culture can be a primary ante-
cedent of knowledge creation, sharing, and transfer,
researchers need consider the nature of both an organiza-
tion's culture and its knowledge creation process. Focus-
ing on Pakistani banks, this qualitative study aims to
address the role that organizational culture plays in
supporting or impeding the creation, sharing, and trans-
fer of knowledge.
2 | P A K IS T A N I BA N K I N G— P A S T
AND PR ESENT
Vital to the economic well-being of a country, an efficient
banking sector has been described as the backbone of
economic development and growth (Ahmad, Nafees, &
Khan, 2012). Banks help strengthen a nation's economy
by providing financial resources to companies and indus-
tries, and by fostering trade.
The banking industry has been essential to Pakistan
since the nation's establishment in 1947. In the 1950s,
however, only 7% of the population made use of banks
because of a lack of technical resources and financial
education. Although reforms were introduced in 1972 to
make banks more responsible for economic growth and
social justice, they were not effectively implemented at
first. The nationalization of Pakistan's banks in 1974
sought to spur economic growth and improve social wel-
fare in all sectors and regions through better use of capi-
tal and equitable distribution of credit.
Currently, 26 commercial banks, six developing finan-
cial institutes (DFIs), and 11 microfinance banks operate
under a regulatory framework established by the State
Bank of Pakistan. The emergence of new banks has put
pressure on the more established financial institutions to
implement more efficient technology and provide better
service to customers. The performance indicators of the
last decade (2009–2018) show positive overall growth for
the industry. In that period, banking industry revenues
went from PKR 6,516 billion (about USD 42 billion) to
PKR 15,134 billion (about USD 98 billion); deposits rose
from PKR 4,786 billion (about USD 31 billion) to PKR
11,092 billion (about USD 72 billion); lending increased
from PKR 3,240 billion (about USD 21 billion) to PKR
5,025 billion (about USD 32 billion); and investments
increased from PKR 1,737 billion (about USD 11 billion)
to 7,625 billion (about USD 49 billion).
Since the 1990 privatization of Pakistan's banks, the
financial sector has become one of the fastest developing
service sectors in the nation. Privatization prompted
enhancements in the sector's information technology to
replace arduous manual data processing (Tahir, 2014). It
also led to considerable changes in workplace values.
With automation, banking processes have become more
efficient. The banks also have become more knowledge-
intensive than other organizations, making it essential
for the nation's banks to exploit knowledge as a formal
factor of production that can be used by other members
(Mazhar & Akhtar, 2016).
Before privatization, Pakistani banks lagged behind
their competitors in terms of effective knowledge manage-
ment approaches in local and international markets.
Afterward, they addressed institutional irregularities,
MEMON ET AL.
reduced nepotism, and introduced cutting-edge manage-
ment practices (Khilji, 2003). Privatization not only broke
the chains of a bureaucratic culture, but also streamlined
human resource practices and enabled financial leaders to
take advantage of contemporary management practices
and the active business milieu (Bhatti & Qureshi, 2007).
With privatization, banking structures also were
transformed, as knowledge management made it easier
for banks to efficiently transfer information and share
content.
In spite of the radical transformation in Pakistan's
banking industry after privatization, bank employees typ-
ically are still not allowed to make decisions on their
own. Research findings that surprisingly indicate a nega-
tive association between strategic direction and knowl-
edge creation imply that bank employees are uncertain
about their operational goals, which are either unclear or
mismatched with organizational goals (Bashir, 2015).
Individual behaviors related
to actualizing, capturing, and
retaining knowledge that
stem from deficiencies in for-
mal language may create a
knowledge-sharing-hostile
environment that also can
act as a cultural barrier
between ethnicities or sub-
cultures.
Pakistan has a collectivist culture, which cherishes
harmony, cohesion, and societal oneness (Hofstede &
Hofstede, 2005). Banking jobs in Pakistan have changed
in recent years, with employees more likely to socialize
and share knowledge with their colleagues (Memon,
Rizvi, & Syed, 2017). Meanwhile, bureaucracy and unjust
power distribution have led to displeasure with manage-
ment policies. The involvement of bank employees in
goal-setting remains infrequent and the low level of
employee empowerment creates a sense of dispossession
that prevents employees from sharing ideas and making
informed decisions (Memon, Syed, & Arain, 2017).
Moreover, some of the benefits of privatization have
been sabotaged by pressure from collective bargaining
3
units in the private sector, labor unions in the public sec-
tor, and various political parties (Javed & Nabi, 2018). As
a result, the restructuring process in banking has sub-
stantially decelerated, and government actions to deal
with these concerns has generated controversy.
In the workplace, employees often seek to improve
their knowledge by consulting their peers, getting expert
training, and receiving supervision from senior staff
members. In many cases, however, this kind of knowl-
edge sharing can be limited by unclear direction in local
branch settings, can result in the finest information avail-
able or a merely satisfactory solution, or can be fragmen-
ted because it is subject to individual preferences
(Michailova & Husted, 2003). In addition, an adequate
command of formal (i.e., official) language also plays an
important role in effective task performance. A high level
of oral, written, and sensory aptitude is needed to effec-
tively collect and share knowledge that is essential to
problem-solving. Individual behaviors related to actualiz-
ing, capturing, and retaining knowledge that stem from
deficiencies in formal language may create a knowledge-
sharing-hostile environment that also can act as a cul-
tural barrier between ethnicities or sub-cultures
(Michailova & Husted, 2003).
3 | CULTURE A ND
KNOWLEDGE-SHARING
Although a great deal of research has examined the con-
cept of culture in terms of cognitive dimensions based on
empirical or factual knowledge, culture has also been
defined as “a process of conceptual development posi-
tioned within the context of definite material conditions”
(Mills, 1988, p. 352). The multi-stage culture model pro-
posed by Schein (2010) illustrates the key organizational
dynamics that underlie culture and present diverse meth-
odological implications (Exhibit 1). For instance, an
organization makes its artifacts public by exemplifying
them through vision statements, company slogans, physi-
cal ambiance, daily operations, and product and service
process. Although they may be visible, they are often
undecipherable physical, behavioral, and verbal clues
about the organizational culture. Espoused values usually
reflect how members act together and respond to envi-
ronmental or external forces. Consequently, they can be
more powerful than management decisions in enhancing
employees' dependability, cohesiveness, and credibility.
Basic workplace assumptions play an especially cru-
cial role in forming a strong organizational culture
because they have a significant impact on the outcomes
of the other levels. Therefore, it could be argued that to
sustain a strong culture, it is important to connect
4 MEMON ET AL.
EXHIBIT 1 Schein's three levels of culture
Artifacts and Creation Visible but often
Technology undecipherable
Art
Visible and audible behavioral pattern
Values Greater level of
Testable in the physical environment
awareness
Testable only by social consensus
Basic Assumptions
Relationship to environment
Nature of reality, time and space
Nature of human nature
Taken for granted,
Nature of human activity invisible,
Nature of human relationship preconscious
Source: Schein, 2010
management decisions to the essential beliefs, values,
and assumptions that reflect the organization's history
and its collective wisdom. Specifically, organizational
shared behavioral expectations (e.g., system norms) and
normative beliefs (or system values) are responsible for
creating an inter-organizational bootstrapping—a self-
sustaining process that requires no external help
(Chandler, 2019; James et al., 2008). In other words,
workplace normative beliefs and shared behavioral
expectations depict the way in which individuals perceive
the impact of their work environment on themselves
(James et al., 2008).
It can be argued that organizational culture is shaped
by varying facets of organizational life. For instance, dif-
ferent organizational contexts in terms of vision, mission,
strategies, or interpersonal relationships may shape or
reshape people's inherited beliefs and assumptions,
which may have a significant impact on workplace per-
formance, output, and competitiveness (Cabrera &
Bonache, 1999; Dhir, 2019). In one line of argument,
scholars contend that organizational culture will adjust
and maintain a particular identity and can transform an
individual's behavior. Therefore, cultural attributes may
well be used to manipulate explicit behavior. Otherwise,
it is going to be inferred, appraised, and accepted, or
altered and discarded (Memon, Syed, & Arain, 2017;
Zheng, Yang, & McLean, 2010).
4 | C U L T U R E AN D K N O W LED G E
MANAGEMENT
Knowledge management has been described as the utili-
zation and advancement of an organization's knowledge
resources to accomplish organizational objectives
(Theriou & Chatzoglou, 2008). It includes the generation,
control, stockpiling, and distribution of that information
among individuals throughout the organization. In other
words, it deals with the knowledge streams in an organiza-
tion (Hislop, Bosua, & Helms, 2018). Thus, to gain compet-
itive advantage and enhance organizational performance,
it is important for organizational leaders to establish and
implement knowledge management strategies.
Organizational culture plays an ubiquitous role in
knowledge management initiatives and can serve to expe-
dite the benefits associated with them. For instance, in a
learning organization that has a democratic culture
(Alipour, Idris, & Karimi, 2011), a decentralized structure
permits the capture and sharing of learning so that the
organization may continue to progress and develop com-
petitively (Calantone, Cavusgil, & Zhao, 2002). A knowl-
edge management organization's structure should
include the ability “to handle tacit knowledge, and
change it into explicit knowledge” (Anantatmula &
Stankosky, 2008, p. 27).
Knowledge management
has been described as the
utilization and advancement
of an organization's
knowledge resources to
accomplish organizational
objectives.
As a result of changes in the knowledge economy that
have led to striking differences between the culture and
structure of organizations, some enterprises seeking to
implement knowledge management systems have intro-
duced new positions to their conventional hierarchy,
such as chief knowledge officer, knowledge analyst,
knowledge manager, and knowledge engineer. These
reforms in basic organizational structure support the pro-
cess of managing tacit and explicit knowledge
(Anantatmula & Stankosky, 2008). Specifically, they facil-
itate knowledge sharing and transfer by increasing
employees' awareness of the benefits of knowledge man-
agement, offering incentives for the attainment of knowl-
edge goals, and creating a culture in which senior
managers proactively engage in knowledge sharing and
transfer (Lee, Shiue, & Chen, 2016).
Organizational leaders, however, must be aware of
impediments that may limit employee interaction and
MEMON ET AL.
restrain the knowledge creation and sharing process—for
instance, “workplace politics, harsh criticism of new
ideas, destructive internal competition, avoidance of risk
and an over-emphasis on the status quo” (Amabile,
Conti, Coon, Lazenby, & Herron, 1996, p. 115). Such
an organizational climate is likely to erode the level
of employee morale that is needed to create and
exchange ideas. It also raises doubts in employees' minds
regarding management policies, further discouraging
them from actively participating in knowledge creation
and sharing activities, and damping the socialization
norms and practices through which employees exchange
their ideas, knowledge, information, and feelings. When
employees are critical of top management, they are less
likely to take on decision-making responsibilities or to
share ideas or information that could be important in the
workplace.
5 | F OC U S I N G O N P A K I S T A N I
BANKS
With an eye on offering guidance to human resources
professionals in the Pakistani banking sector, this quali-
tative study addresses these questions:
• How does culture support or impede knowledge crea-
tion, sharing, and transfer in Pakistani banks?
• What are the potential cultural barriers to knowledge
creation, sharing, and transfer in Pakistani banks?
To explore the underlying issues, researchers conducted
face-to-face, semi-structured interviews with 16 top-level
managers from five commercial banks in Karachi,
Pakistan: Allied Bank Limited, Habib Bank Limited,
Muslim Commercial Bank, National Bank of Pakistan,
and United Bank Limited. The respondents, 12 men and
four women, were selected on the basis of their broad
experience in the banking industry and involvement in
policy making (Mayan, 2016). They included six vice
presidents, four HR department heads, three group
heads, and two regional operation managers.
As shown in Exhibit 2, the researchers initiated each
interview with introductory questions (Easterby-Smith,
Thorpe, Jackson, & Jaspersen, 2018). At the start of each
interview, the researchers also briefed the interviewees
on the scope and aim of the study, as well as on the possi-
ble implications of the findings (King, Horrocks,
& Brooks, 2018). To explore more comprehensive infor-
mation, the researchers reviewed each interview. For
example, when a review of the first interview revealed
that the subject, a senior HR officer, was unfamiliar with
the concept of creating knowledge through human
5
EXHIBIT 2 Interview guide
What position do you hold within the bank?
• What are your main functions of your job?
• How long have you been working in the current organization?
• How long have you been working at your current position?
How do management policies affect the way employees express
their opinions? Can you provide an example?
• Do you encourage knowledge exploration (i.e., finding new
knowledge resources)?
• Do you encourage knowledge exploitation (i.e., leveraging
existing knowledge resource)?
• Does your organization create effective new knowledge from
people interactions?
• Is your bank updating and developing new knowledge
processes for innovation?
• Is your bank integrating knowledge in the organization's
business activities?
How does leadership encourage employees to create a knowledge
culture? Can you provide an example?
• How you would characterize the culture of your bank?
• Which cultural value do you consider as most important for
encouraging employees to create a knowledge culture?
• How does leadership encourage employees to participate in the
establishment of their goals and performance objectives?
Do you provide a work environment in which employees are
engaged, challenged, motivated, and rewarded?
• Do you promote teamwork in the bank?
• Do you promote workplace socialization among employees?
• How are individual ideas brought forward and evaluated?
• Do you provide an IT platform that enhances employees'
efforts to create and share knowledge?
Is knowledge accessible to everyone in your bank?
• How do organizational members communicate formally
(e.g., group discussion, meetings, seminars, workshops)?
• How do organizational members communicate informally?
• In your opinion, what are the main cultural barriers to
achieving the knowledge required for performing tasks?
interaction, the researchers realized the importance of
the introduction at the beginning of each interview to
ensure a complete understanding of the research
problem.
In the course of the interviews, the researchers asked
main questions, as well as follow-ups, to give the inter-
viewees the opportunity to talk freely about their judg-
ment, experience, and understanding (Mayan, 2016).
Aside from the basic demographic questions, 11 questions
were initially asked in the first two interviews. After per-
forming a preliminary analysis of the data collected dur-
ing those two sessions (Corbin, Strauss, & Strauss, 2015),
the researchers added four questions.
6 MEMON ET AL.
A qualitative data analysis examines inductive con-
tent to learn how the subjects being interviewed perceive
the social world (Elo et al., 2014). As part of the inductive
content analysis used in this study, the data were sub-
jected to a systematic process of coding (Vaismoradi,
Turunen, & Bondas, 2013). The NVivo software was used
to assign codes to all primary qualitative data generated
from the 16 interview transcripts (QSR International,
2010). Subsequently, categories, themes, and concepts
were systematically developed to transform raw data into
theory.
6 | P R O M O T I N G A C U L T U R E OF
LEADERSHIP
The first theme concerning organizational culture that
emerged was leadership encouragement. Another three
subcategories—teamwork, achievement, and growth
opportunities—were also derived from that main
category.
According to the interview findings, management
appeared to be supportive. According to one head of HR,
“Management encourages teamwork and achievement.
Good performers have excellent growth opportunities in
the organization. But it is not possible to maintain the
same standard if you are handling a network of more
than a thousand branches. Sometimes, we receive com-
plaints from our employees about unfair practices from
middle management at the branch level, but it depends
on the individual and manager of that branch.”
A sturdy organizational culture and supportive envi-
ronment play a significant role in deploying tacit
knowledge through social interaction, whether in an
office or department, or during meetings and training
programs. As one senior HR manager noted, “[The]
culture of this organization is supportive and helpful.
We have an open office environment throughout the
branches in which all banking operations are per-
formed. Only managers have separate glass cabins, but
these are also open and employees can interact with
each other at any time.”
Apart from having an open office environment con-
ducive to communication and a supportive workspace, a
bank's information systems also can play an important
role in knowledge sharing. According to one respondent,
“Information technology is good for managing informa-
tion in daily activities because it makes it easier to handle
than before.”
A major difference in culture that was identified
between the pre- and post-privatization eras was the
degree of management encouragement and support for
employees to participate in establishing their own goals
and performance objectives. According to one senior HR
manager, “Banks are highly centralized organizations,
and decision-making is mainly done at the top level of
the management structure. Before privatization, man-
agers were least empowered with decision powers. But
this is not the case now, because most of the operational-
level planning and decision-making is undertaken at
regional and divisional offices. Managers have complete
authority to decide what their objectives are, and this is
in accordance to changing supply-and-demand condi-
tions in their areas.”
The free and easy flow of knowledge throughout all
levels of an organization is essential to its creation.
Addressing knowledge creation and transfer, one senior
manager said, “Employees are responsible for following
business ethics and practices during preparation of their
operational plans. For this, they have access to important
information regarding banking policy, rules, and proce-
dures.” The concept of operating within the framework
of established policies was reinforced by another senior
bank manager, who said, “Management policies are
clearly stated and communicated to all the employees.
However, employees… have to make operational plans
according to the ethics and business practice of
the bank.”
A sturdy organizational
culture and supportive
environment play a
significant role in deploying
tacit knowledge through
social interaction, whether in
an office or department, or
during meetings and training
programs.
The interviews revealed that training and develop-
ment (T&D) programs were substantial instruments for
helping management to build a knowledge culture. After
privatization, leading banks invested intensively in
employee T&D. One deputy general manager said, “This
organization promotes the culture of learning and devel-
opment. The senior management do not have double
standards in terms of employees' learning, career growth,
and development. The management does not want
MEMON ET AL.
employees to achieve assigned targets only, but they are
looking at how much they grow through learning and
development. We are spending maximum budget on
employees' training, higher education, and career devel-
opment plans.”
To be successful, knowledge management initiatives
require a vision encompassing employee autonomy and a
culture of knowledge creation and sharing. As one
regional bank head noted, in some cases this entailed the
introduction of merit-based, as opposed to politically
based, hiring decisions and a new level of competitive-
ness in the organization. The respondent said, “After pri-
vatization, the recruitment of a new generation of highly
qualified bankers on the basis of merit has completely
changed the culture of the organization. This culture
increased the employees' confidence in management and
encouraged cooperation and trust. I can proudly say that
this organization has a very different culture and envi-
ronment in which staff can learn with colleagues and
seniors.”
In terms of human resource development, some
believe that a dynamic work environment has helped to
foster workplace ties. One senior manager noted, “After
privatization of this bank, wide restructuring has been
carried out in which more than 2,000 employees were
fired from their jobs, but they only fired those employees
who were either unqualified or appointed on a political
basis. These reforms brought positive changes and helped
management and employees to build a strong working
relationship.”
Numerous challenges remained, however. A senior
HR head said, “Most of the people have not accepted the
changes after privatization because they are losing their
benefits in this process. To be very honest, management
couldn't implement changes right away because of politi-
cal and government pressures.”
In spite of such pressures in matters of new appoint-
ments, one senior HR head pointed out that branch man-
agers appeared to be more disposed to encourage and
support teamwork and keep their staff motivated. “We
have a number of excellent examples in this
organization,” he added. In this regard, the regional head
of a bank said, “I think people share and exchange ideas
only when you encourage them and provide them with a
good and healthy environment in which they feel free to
say anything to anyone.”
6.1 | Overcoming cultural barriers
The analysis of the data collected from the interviews rev-
ealed various cultural barriers to knowledge sharing and
creation in the Pakistani banks. One senior HR head
7
noted, “In my opinion, a lack of adaptability is a big
issue. A lot of people are still used to the old systems and
procedures. The management can only implement a good
system; if someone doesn't want to adopt this system,
then you cannot force it. I think people are not yet ready
with this; therefore, they avoid adopting it.”
The regional head of the same bank identified a lack
of trust of middle management as another significant bar-
rier. He argued that “regional and branch level heads
have more influence in the routine information sharing
and exchange. It means that people at the top either trust
them blindly or develop a system of cross-monitoring.
This is also a big problem because management cannot
rely on the information received from regional and
branch level heads.”
From a cultural standpoint, implementing changes in
third-world countries like Pakistan is difficult because
most people do not accept change right away. For exam-
ple, adapting to innovative systems or technology is not
easy for people who are not quick at learning new things.
As one senior HR manager said, “People are strongly
affixed with old practices and… in the developing coun-
tries like Pakistan, people are not ready to use technology
at first go.”
One of the deputy general managers maintained that
the lack of command of formal language was a significant
barrier to absorbing the knowledge required to perform
certain tasks or activities. “In my opinion, language is the
main cultural barrier within branches located in remote
areas or villages,” he said. “The official language of com-
munication, documentation, and correspondence is
English. The employees who are working with branches
located in remote areas or villages are not proficient in
communicating in English. Therefore, a lack of com-
mand of the language may be a cultural barrier in knowl-
edge creation, sharing, and use.”
In the same vein, a deputy general manager
suggested that some junior level officers and fresh hires
may hesitate to share and create knowledge because
they are not as familiar with company procedures as
more experienced staff members are, and may not be
aware of all the policies that might come into play dur-
ing routine activities. When people are trying to learn
how to perform a task or activity, such a lack of famil-
iarity with standard operations can hinder knowledge
creation, sharing, and use. If “people are too bogged
down with sorting out operational challenges for
knowledge sharing,” said a senior HR officer, “this
proves to be a barrier to achieve required knowledge.”
On a positive note, the deputy general manager said,
“With time, they improve.”
Despite the identification of these cultural barriers,
one respondent reported none in his organization. “The
8 MEMON ET AL.
culture of this organization is not to be too cut-throat.
Individuals tend to be helpful to anyone who has come
into a new role; this also enables them to learn new tasks
easily.”
Nonetheless, the bureaucracy and unequal distribu-
tion of power commonly found in Pakistani banks has
cast doubt on the reliability of bank management poli-
cies. It also reflects a lack of empowerment that prevents
employees from being actively involved in decision-
making and enthusiastically sharing their ideas on
important workplace issues. One of the senior vice-
presidents who participated in the study said, “I think
bureaucratic culture is a big cultural barrier. Although
most things changed after privatization, middle manage-
ment is not happy with the changed environment.”
7 | BANKING ON INTERACTION
In the case of Pakistan's banks, the findings presented
here indicate that the main source of deploying tacit
knowledge is a supportive culture and continual social
interaction in open office spaces and departments, as well
as during meetings and training sessions. This finding
aligns with previous research that found that face-to-face
social interaction—through employee rotation, multiple
modes of communication, teaching, training, and
brainstorming—facilitates knowledge sharing and trans-
fer (Al Saifi, Dillon, & McQueen, 2016). To overcome bar-
riers to knowledge sharing, bank managers can support
teamwork and keep staff motivated by engaging
employees in the establishment of their goals and perfor-
mance objectives.
Such efforts foster a spirit of collective mindfulness
and cultivate teamwork that proactively addresses con-
flicts and challenges (Ghobadi & Mathiassen, 2016).
Although the present banking culture in Pakistan seeks
to facilitate the exchange of ideas among employees, the
role of branch managers is decisive in promoting knowl-
edge sharing within the culture and structure of the
organization.
The analysis of the data collected from the interviews
revealed various cultural barriers to transferring the
knowledge needed for efficient performance on the job.
For instance, a lack of adaptability and awareness of the
benefits of effective knowledge management impedes
knowledge creation and sharing. On a positive note, the
level of trust has increased in Pakistani banks post-privat-
ization, resulting in increased management efforts to pro-
mote teamwork and offer opportunities for growth to
good performers. A robust organizational culture and
supportive environment also plays a significant role in
tacit knowledge deployment. In the case of the Pakistani
banks, open workspaces facilitate interaction among
employees and the exchange of ideas, information and
feelings that can be crucial to knowledge creation.
Often mentioned as a barrier to the best use of knowl-
edge resources, technological incompatibility is of partic-
ular concern in a developing nation such as Pakistan,
where cultural values are deeply rooted in beliefs that
may resist technological innovation in the workplace.
This requires specific attention to encouraging accep-
tance and full use of new resources that contribute to
information gathering, sharing, and transfer.
The main source of deploying
tacit knowledge is a
supportive culture and
continual social interaction
in open office spaces and
departments, as well as
during meetings and training
sessions.
Even with the post-privatization shift to management
support of increased employee participation in the work-
place, evidence of autocratic leadership, characterized by
a power distance mind-set and bureaucratic culture, still
can be found in Pakistan's banks. In such an environ-
ment, employees are likely to feel powerless and unable
to achieve their full potential. Some banks, however, are
making progress in encouraging employees to play a
greater role in decision-making, even while requiring
adherence to the organization's overall business
framework.
Although the results of this qualitative study based on
16 semi-structured interviews offer valuable insights on
knowledge management, they cannot be generalized to a
wider population. However, important the impact of cul-
ture may be to the banking industry in a single develop-
ing country, how it is reflected in other industries in
other parts of the world is not directly evident. Therefore,
future studies of the factors that contribute to or impede
the sharing and transfer of knowledge, conducted in dif-
ferent contexts and applying mixed-method or other tech-
niques, are advisable.
Access to knowledge is indispensable for employees
in any organization. Managers who seek to facilitate
knowledge sharing and transfer would do well to
MEMON ET AL.
establish knowledge incubators to create and deploy tacit
knowledge resources effectively. To overcome any trust
deficits that might prevent effective knowledge sharing,
they should take steps to motivate staff by creating a cul-
ture where employees are encouraged to share knowl-
edge. Unfamiliarity with the benefits of effective
knowledge management system weighs down knowledge
creation and sharing. Proactive efforts to overcome this
gap in understanding ultimately will serve to enhance
organizational effectiveness at every level.
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A U T H O R B I O GR A P H I E S
Salman Bashir Memon, PhD, is an associate profes-
sor of human resource management in the Institute of
Business Administration of Shah Abdul Latif Univer-
sity in Khairpur, Pakistan, and is currently doing
post-doctorate work at Universiti Utara Malaysia
(UUM). As a deputy director in the Directorate of
MEMON ET AL.
Distance Education, he also is responsible for develop-
ing a learning management system for the distance
education program. His current research interests
include knowledge management, work-life-balance,
workplace diversity, work design, mixed-methods
research, and structural equation models. He earned
his doctoral degree in management science from
Queen Margaret University in Musselburgh, Scotland.
Dr. Memon can be reached at salman.memon@salu.
edu.pk.
Jawaid A. Qureshi, PhD, is an associate professor,
head of the marketing department, and head of the
Research Center for Entrepreneurship at SZABIST,
the Shaheed Zulfikar Ali Bhutto Institute of Science
and Technology, in Karachi, Pakistan. With 21 years
of experience in the pharmaceutical, consumer health
care, and nutrition industries, as well as academia, he
is a member of the Entrepreneurial Educators Forum
of MIT and an advisor to the Harvard Business
Review Advisory Council. He earned his doctoral
degree in global business management and serves on
the board of several universities, research journals,
chambers of commerce, media, and NGOs.
Dr. Qureshi can be reached at jawaid.qureshi@
szabist.edu.pk.
Imdad Ali Jokhio, PhD, is an assistant professor of
human resource management in the Department of
Public Administration of Shah Abdul Latif University
in Khairpur, Pakistan. He received his doctoral degree
in human resource management from the University
of Northampton, England. An active member of the
Chartered Institute of Personnel and Development
(CIPD), Dr. Jokhio is also an associate editor of South
Asian Journal of Management & Administrative Sci-
ences His current research interests include talent
management, employment relationship and employee
engagement, workforce diversity and change manage-
ment, and case study and mixed-methods research.
Dr. Jokhio can be reached at imdad.jokhio@salu.
edu.pk.
How to cite this article: Memon SB, Qureshi JA,
Jokhio IA. The role of organizational culture in
knowledge sharing and transfer in Pakistani banks:
A qualitative study. GBOE. 2020;39(3):1–10.
https://doi.org/10.1002/joe.21997