Mediating role of knowledge management effectiveness on HRM practices and organisation performance relationship

Wan Norhayate, Wan Daud and Rania, Jamal Altarwneh and Laith Rajalah, Al-Shamaileh (2019) Mediating role of knowledge management effectiveness on HRM practices and organisation performance relationship. Trends in Social Sciences, 1 (1). pp. 42-56. ISSN e-ISSN: 2637-0735

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Abstract

In this paper, the effects of ability-enhancing human resource management practices (staffing, training), motivation-enhancing human resource management practices (compensation, performance appraisal) and opportunity to perform-enhancing human resource management practices (involvement, communication) were examined along with knowledge management effectiveness (knowledge infrastructure capability, knowledge process capability) on organisation performance of Jordanian banks. The construct of organisational performance is measured by combination of turnover intention, service quality and financial performance. The study employed convenience sampling to which 105 questionnaires distributed. This paper contributes to unlock the "black box" problem of the little understanding of HRM-organisation performance relationship through the mediating role of knowledge management effectiveness on HRM-organisation performance relationship with the insights of ability motivation opportunity (AMO) and resource-based view (RBV) theory. The findings show the significant impact of ability, motivation, opportunity-enhancing human resource management practices and knowledge management effectiveness on organisation performance in the Jordanian banks. This paper concludes with the recommendations for the banks to strengthen the relationship between their HRM, knowledge management effectiveness and their performance.

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