Abstract
The knowledge asset was highlighted as the key strategic weapon in the postindustrial societies to achieve the competitive edge. Sri Lanka is gradually moving towards a post-industrial society context, which will increase the domain value centered on knowledge management and knowledge worker’s agility. Nonetheless, this study serves as a prelude to investigating the relationship of knowledge management practices on worker agility in the Sri Lankan banking sector. Workforce agility has received much interest in the manufacturing industry, but it has been overlooked in the service industry. As a response, the authors develop research questions to assess the relationship between proactive agility and flexible agility in knowledge management processes (knowledge creation, acquisition, sharing, and application) in the banking industry. The banking industry was chosen specifically because it is prone to change on a daily basis, and employees were expected to adjust their agile behavior. Two hypotheses were constructed for this purpose, and both hypotheses were failed to reject based on the correlation analysis and thus the findings of the study confirmed that knowledge management has a significant positive relationship with proactive agility and flexible agility. For this quantitative, deductive study, a systematic literature review was conducted. Existing knowledge was used to create a conceptual framework that addresses in the gaps in current research. The findings of the study emphasize the significance of top management’s involvement and strategic direction in fostering a strong knowledge management culture, which has a significant important role in the long run to sustain an agile workforce.