The effects of human resource management practices and knowledge management strategies on organizational performance among Jordanian banks total quality management as a moderator

Abstract

With the ever increasing attrition rate of organizational performance in national banks, the Jordanian banks continue to face a number of economic difficulties and imbalances in the economic structure, banking results witnessed a decline in many case. Therefore, this study aims to investigate the effects of total quality management (TQM) on the relationship between human resource management (HRM) practices and knowledge management (KM) strategies towards organizational performance of Jordanian banks. A total of 135 heads of department from Jordanian national banks participated in the survey. The result of partial least squares (PLS) path analysis supports all variables in the hypothesized direct relationship with organizational performance. Specifically, the relationship between HRM practices (training and development, performance appraisal and compensation) and KM strategies (knowledge acquisition, knowledge conversion, knowledge protection, knowledge application and knowledge sharing) towards organizational performance are found to be significant. The results of the analysis also suggest that TQM moderates the relationship between HRM practices (training and development and performance appraisal), KM strategies (knowledge conversion, knowledge protection, knowledge application, and knowledge sharing) and organizational performance; while the moderation effects of TQM on compensation, knowledge acquisition and organizational performance are not been supported. Taken together, the findings of this study lend empirical support to the view that joint creation of value between variables will confer competitive advantage. Jordanian national banks particularly should focus on the implementation of TQM, HRM practices and KM strategies to enhance managers performance and increase productivity and effectiveness for sustainable internationalization benefits.