Knowledge Management and The SECI Model: A Study of Innovation in The Egyptian Banking Sector

The emergence of knowledge management (KM) as a practical business discipline is connected to the growing realisation that knowledge is an essential resource for organisations to retain sustainable competitive advantages. The SECI model, proposed by Nonaka and Takeuchi (1995) best embraces the nature of KM and of knowledge conversion. This model uses four processes of knowledge conversion: socialisation, externalisation, combination and internalisation to create knowledge in organisations. A review of the relevant literature, however, suggests that the application of the SECI model is suffering from a lack of research in banking, even though this is a knowledge-intensive industry. Since the model was driven from Japanese values, the applicability of the model in different cultural contexts is also arguable. This study aims to examine the use of the SECI model in Egyptian banks and its effect on the innovation process. To examine the model in a different cultural context, Egypt as the biggest Arab country was a suitable research site. Both quantitative and qualitative methods were employed to achieve the research aims. The qualitative data were used to triangulate the quantitative data by detailing the SECI conversion process, and its relation to innovation. Two hundred and ten self-administered questionnaires were used to investigate to what extent Egyptian banks perform the SECI and innovation activities, and 26 semi-structured face-to-face interviews provided details about how the Egyptian banks perform these activities. The survey data were analysed by using Predictive Analytic SoftWare (PASW). Different types of statistical applications were used, namely factor analysis, Cronbach’ alpha, descriptive analysis, multiple regression, t-test and one-way ANOVA. Content analysis was used to analyse the interview data were by looking for noticeable patterns to be connected to the research framework. The findings indicate that the SECI processes were used for knowledge creation in Egyptian banks. However, some self-imposed limitations minimised the benefits of the socialisation and externalisation processes in creating and sharing knowledge. In contrast, internalisation and combination faced fewer limitations, revealing that Egyptian banks focus more on formal rather than informal knowledge. Therefore, the study supports the view of the model as being universal, but the use of each process is subject to the cultural context, leadership support, and types of task. The findings also suggest that the SECI processes - whether separate or as a whole - positively influence the innovation process by increasing the generation of ideas for banking services, products and processes. The internalisation process had the most positive influence on innovation, followed by the combination, externalisation and socialisation processes respectively. Many of the product and process innovations in the last few years were due to the introduction of new technologies

Housing policy and finance in Egypt: extending the reach of mortgage credit

This thesis attempts to address the need for a clear strategy for the supply side in the Egyptian mortgage market. The thesis focuses for the first time on the issues in relation to the role of the bank and non-bank financial institutions in the creation of an effective and sustainable mortgage market that works better for low- and moderate-income households in Egypt as well as the role of these institutions after the mortgage market has reached a certain stage of development. The key research objectives are as follows: 1) to address why Egyptian housing co-operative societies can be seen as important policy agents to expand the mortgage credit beneficiaries base in Egypt; 2) to evaluate the effectiveness of the Egyptian housing co-operative societies as community based organisations and policy agents; 3) to identify and analyse the various economic, social and political factors influencing this effectiveness; 4) to assess the role of the banking institutions (as contextual stakeholders in the immediate environment of the Egyptian housing co-operative societies) in expanding access to mortgage credit and savings in Egypt; and 5) to identify which institutions constrain most the development of an effective and sustainable level of mortgage credit for low- and moderate-income households. In order to address these issues and objectives, the researcher reviewed the theoretical and empirical issues associated with the assessment of mortgage credit intermediation models to identify their reach and the limit of that reach and, implicitly, to examine what needs to be done to close the gap on what would be a more accessible mortgage market. Further, from 2008 to 2010, the researcher surveyed and interviewed a group of banking, co-operative and government officers in Cairo, Egypt. Questions regarding their attitudes towards housing policy and finance in Egypt were posed, especially in relation to the provision of mortgage credit in Egypt. The thesis found that Egyptian banking institutions, as agents in carrying out housing policies and finance, enabled the housing co-operative societies as stakeholders to form expectations towards the results of the new reforms with the same framework as they had done before. The survey and interviews showed that housing co-operative societies were dissatisfied with the expected results of recent reforms in the Egyptian housing and mortgage markets. It appears that resistance to the reforms was caused by the fact that housing co-operative societies were not interested. But the thesis found that the unfair distributive results associated with mortgage credit allocation were resented most by housing co-operative societies. Thus, the thesis concludes that to extend the reach of mortgage credit, there needs to be a wider strategy to reform the housing and mortgage markets in Egypt that includes strengthening the role of community institutions such as Egyptian housing co-operative societies based on well defined and structured stakeholder framework

Report on the implementation of the Euro-Mediterranean Charter for Enterprise. 2008 enterprise policy assessment

Mediterranean partner (MED) countries: Algeria, Egypt, Israel, Jordan, Lebanon, Morocco, the Palestinian Authority, Syria and Tunisia

An Investigation of the Effects of Intellectual Capital on Innovations in the Egyptian Banks: The Mediating Role of Organisational Capital

This research aims to analyse the direct and indirect effects of human capital, social capital and customer capital on the different types of innovations via organisational capital in the service sector. It also examines the interaction among the different types of innovations including product, process and organisational innovations and tests the role of human capital, social capital and customer capital in supporting organisational capital. This research employs the first stage of Actor Network Theory named problematisation to justify the research model. This study adopts a positivism philosophy, a deduction approach and a quantitative method as the research methodology. Hence, a questionnaire was used to gather data from 198 managers in the Egyptian banks (54% response rate). Structural Equation Modelling by Partial Least Square (warp PLS 3.0) was applied to test the research hypotheses. The research findings indicate that product, process and organisational innovation are positively associated with organisational capital. It is found that social capital and human capital have direct and indirect positive effects on both product and organisational innovation via organisational capital. It appears that social capital and human capital do not have a direct influence on process innovation whereas organisational capital fully mediates the relationship between social capital, human capital and process innovation. The study explores the direct and indirect positive effects of customer capital on three types of innovation through organisational capital. Additionally, organisational innovation has a positive relation with process and product innovation, which is significantly associated with process innovation. The most significant influence of intellectual capital is on product innovation, followed by organisational innovation, whereas the least significant influence is on process innovation. Moreover, the results also show that there are no significant differences between the public and private banks in terms of the path coefficients. The effect size of organisational capital on product and process innovation in the private banks is substantially larger than it is in the public banks. In the same way, the private banks have relatively larger effect sizes for human capital on product and process innovation via organisational capital than those in the public banks. Unexpectedly, in the public banks, the positive effect size of customer capital on product and process innovation via organisational capital is larger than it is in the private banks. This study has contributed to intellectual capital, innovation and service sector literature. It explores many benefits for the managers of the banks. It suggests that they should view intellectual capital as a catalyst for the different types of innovations. For example, banks should maintain and promote social connections amongst their employees to support innovation and to foster the cohesion of informal organisation.The sponsor is Egyptian Government

Entrepreneurial Finance in Egypt: Examination of the Opportunities for a Venture Capital Industry from an Institutional Perspective

This thesis aims to generate an understanding on entrepreneurial finance in Egypt. Furthermore it explores the opportunities for a venture capital industry as a promising tool in entrepreneurial finance. As one of the MENA region’s emerging economies, Egypt is facing economic challenges and high unemployment rates. The Arab spring uprisings added to the pressures upon the economy of Egypt; however, it managed to ignite an entrepreneurial spark among the youth population. Access to finance is an evident hurdle facing entrepreneurship in Egypt. Thus promoting entrepreneurial finance as a growth engine in anticipation to overcome unemployment and slow rates of start-ups might be a plausible solution. Through utilising an institutional theory lens and its institutional determinants, regulatory, normative, and cognitive forces, were found useful to analyse the current entrepreneurial finance environment. This research is an exploratory research; it takes into account both the supply side and demand side of entrepreneurial finance in Egypt. It adopts a qualitative approach for in-depth understanding of the domain and a grounded approach in regard to data gathering for its limited availability on the subject taking the form of a naturalistic enquiry. In doing so it follows an inductive approach to understand the interaction among the supply and demand of finance and the determinants shaping it. This thesis built on secondary data supplied by current research and reports and the primary research conducted via in-depth interviews and participant observations and analysed it from an institutional perspective. According to the findings of this research, it was plausible to argue that the regulatory pillar was held most accountable for the under development of entrepreneurial finance in Egypt. The normative and cognitive pillars both have supportive and inhibiting factors. However, the overall effect of normative and cognitive pillars could be positive if policy makers were able to factor in the cultural and normative forces in policies promoting entrepreneurial finance. The thesis further suggests policy recommendations to enhance entrepreneurship, entrepreneurial finance, and a vivid venture capital industry in Egypt

ICTs – Transforming Agricultural Extension? Report of the 6th Consultative Expert Meeting of CTA’s Observatory on ICTs

This summary report provides an outline of the main issues, developments and trends in agricultural extension, as they relate to ICTs, with a special emphasis on improving rural livelihoods. The report draws on the presentations, case studies and discussions from the CTA Observatory. In doing so, it highlights the potential for, and constraints to, using ICTs for agricultural communication and information exchange, and identifies implications of these issues for CTA.No ICT project should commence before there is a commitment to achieving real development outcomes, and the links between those outcomes and the role for ICTs have been thoroughly assessed..

Finance in Africa

Africa’s recovery from the COVID-19 crisis will depend on private firms sustaining and creating jobs. But even previously thriving enterprises have been badly hit by the crisis. This report outlines the consequences of the health crisis in Africa, the potential cost of the recovery and the willingness of banks to support green investments as they look to the future