Knowledge Management is now widely recognized as a competitive advantage and increasing a number of organizations are incorporating knowledge management as a core strategy to enhance their organizational competitive advantage. To gain a competitive advantage, a company must have the ability to effectively manage its chief asset, knowledge. A high percentage of organizations that have implemented knowledge management as a corporate strategy have not achieved their objectives. Research revealed that organizational culture is a major barrier to create and leverage knowledge assets.
This research examined the relationship between organizational culture and knowledge management, the impact of knowledge management on organizational effectiveness, and the influence of organizational culture to organizational effectiveness in the commercial banks in Thailand. A survey was conducted to collect data on participant’s perceptions of their organizational culture, knowledge management and organizational effectiveness. The data was analyzed using multiple regression analysis and canonical correlation analysis.
The results suggest that organizational culture had significant relationship with knowledge management and also had positive impact on organizational effectiveness in the commercial banks on Thailand. Knowledge management also had significant positive influence on organizational effectiveness.
The findings could help organizations assess the likelihood that implementation of knowledge management initiatives be successful or increase the organizational effectiveness in relationship to the current organizational culture.

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