The structural model of the relations between knowledge management and the competitive advantage of the employees of Bupa Arabia for Cooperative Insurance Company in Jeddah

Abstract

The study aimed at identifying the role that knowledge management processes play in competitive advantage by determining the nature of the direct impact of knowledge management processes (knowledge diagnosis, knowledge generation, knowledge storage, knowledge sharing, knowledge application, knowledge investment) on competitive advantage (cost leadership strategy, excellence strategy, focus strategy, and organizational creativity) among the employees of Bupa Arabia for Cooperative Insurance Company in Jeddah, Saudi Arabia. The sample consists of 243 employees of Bupa Arabia for Cooperative Insurance Company in Jeddah. A questionnaire was prepared including 37 items to measure knowledge management processes and 25 items to measure the dimensions of competitive advantage. The data was analyzed using the structural equation model through the MPLUS program (7). The results showed that there is a direct positive effect (β=0.94) of knowledge management processes on competitive advantage, and this indicates the importance of providing knowledge management processes in developing and strengthening competitive advantage in cooperative insurance companies. The results were discussed in light of previous studies.