Employee Involvement and the Knowledge Creation Process: An Empirical Study of Pakistani Banks

Employee involvement has long been recognized as an important factor in effective human resources and knowledge management. Yet, studies have not provided evidence to directly support the existence of a relationship between employee involvement and the process of knowledge creation. A theoretical framework based on previous research and tested via an analysis of data collected from 235 banking employees in Karachi, Pakistan, shows how a culture of employee involvement relates to knowledge on the job. The findings indicate that three aspects of a culture of employee involvement—empowerment, capability development, and team orientation—are positively correlated with the process of knowledge creation. Additional observations concerning the current state of knowledge creation in Pakistani banks yield practical insights.