TNI Journal of Business Administration and Languages

Vol.8 No.2 July - December 2020

The Mediating Role of Job Satisfaction on The Relationship

between Knowledge Management Practices and Employee Work
Performance: The Private Banking Case in Myanmar

Khin Nyein Nyein Soe1* Aung Chan Aye2

1*Departmentof Management Studies, Sagaing Co-operative University, Myanmar

2Department of Management Studies, Monywa University of Economics, Myanmar

*Corresponding Author. E-mail address: [email protected]

Received: 19 November 2020; Revised: 6 December 2020; Accepted: 14 December 2020

Published online: 25 December 2020

Abstract
This study aimed to investigate the impact of knowledge management practices on employee work
performance and the mediating role of job satisfaction on the relationships between knowledge management
practices and work performance of private banks employees in Myanmar. Specifically, this study emphasized six
dimensions of knowledge management practices, job satisfaction, and employee work performance. The
quantitative research approach was used to investigate 434 valid responses collected via a questionnaire survey
from the users of a private bank in Myanmar. Multiple regression analysis was used to analyze the data. This study
found that three dimensions of knowledge management practices, knowledge sharing, knowledge application, and
knowledge retention significantly impact on employee work performance and job satisfaction partially mediates
on the relationships between knowledge management practices, except knowledge sharing, and employee work
performance. The findings could contribute to the organizational performance context in the aspect of knowledge
management practices and employee work performance. Moreover, the findings could be applied to the
development HR strategies to improve performance.

Keywords: Knowledge Management, Job Satisfaction, Employee Work Performance

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I. INTRODUCTION Mbugua, 2017). Therefore, private banks are usually

Today business world, knowledge has become one recognized for the contribution made in the economic
of the critical driving forces for business success. In activities, innovation, employment and wealth creation
addition, the emergence of rapidly expanding for a nation (Okoth & Kusa, 2013). In addition, as they
technologies for information distribution has focused are in the service sector, banks develop a variety of
attention on knowledge management (Tsirikas & products (including automated teller machine, phone
Katsaros, 2014). Nonaka and Takeuchi (1995) proposed banking, telebanking, Internet banking, etc.) to meet the
knowledge management may growth employee’s needs of customers (Ndubisi, Wah, & Ndubisi, 2007). By
innovation, learning and performance which affect their managing available knowledge of employees, they can
flexibility and job satisfaction. Many organizations are benefit from knowledge management in supporting the
viewing knowledge as the most valuable and strategic creation of new knowledge, inventing new ideas and
resource, and as a result, they are realizing that to taking initiatives to enhance their development and
remain competitive they must manage this resource success in the banking environment (Alrawi & Elkhatib,
(Zack, 1999). In addition, the foundation of 2009). The Myanmar banking industry is characterized
organizational competitiveness in the contemporary by intense competition; therefore, banks should utilize
economy has shifted from physical and tangible their knowledge resources effectively to create
resources to knowledge (Wong & Aspinwall, 2005). competitive advantages and develop a greater ability
Because of the rapidly changing market to act and adapt to the ever-changing tastes and needs
expectations, the demands for new products have of customers (International Monetary Fund, 2018).
been gradually replacing the capital and labor-intensive Therefore, bank managers need to use and manage
firms by knowledge intensive firms, and routine work by their workforce’s knowledge for making decisions and
knowledge worker (Ali & Ahmad, 2006). To provide new performing tasks perfectly for the organizational
and quality products or services, organizations need to success.
have skillful and knowledgeable staffs and leaders. In As human knowledge, skills, and intelligence are
the later time, prime resource of any organization is not tacit and individually centered, they are not easily
its financial or technical resources but it is the captured and processed for the benefit of the
knowledge which is enclosed in the mind of its human organization (Alyoubi, Hoque, & Alharbi, 2018). Many
(Malhotra, 1997). Therefore, knowledge base resources prior studies broadly explained that job satisfaction is
are the path or way that follows in order to have a an employee’s positive/negative perception associated
sustainable competitive edge to the organization with his/her job, which fosters organizational
(Biswakarma, 2018). Moreover, knowledge management commitment and work performance as final outputs
positively affects organizational outcomes of company (Spector, 1997). Although job satisfaction is the most
innovation, product improvement and employee researched topic in the field of organizational behavior,
improvement (Rasula, Vuksic, & Stemberger, 2012). It is it has only rarely been approached from a knowledge-
more important in the service sector especially in a based perspective (Alyoubi et al., 2018). Many
financial institution like banks (Biswakarma, 2018). researchers have been studied the relationship
The role played by banking sector is increasingly between knowledge management and job satisfaction
important for economic development (Ngahu & (Kianto, Vanhala, & Heilmann, 2016; Pruzinsky &

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Mihalcova, 2017; Kumar, 2018). However, there is no identifies four to six knowledge processes that are
documented study or survey for Myanmar banking cyclically interrelated (Nonaka & Takeuchi, 1995;
sector. To fill this gap in the literature, this study Demarest, 1997; Alavi & Leidner, 2001). Similar to these
examines the impact of knowledge management views, this paper proposes that KM practices can be
practices on employee work performance and the divided into six main types: knowledge creation,
mediating role of job satisfaction on the relationship knowledge acquisition, knowledge sharing, knowledge
between knowledge management practices and application, knowledge codification and knowledge
employee work performance. retention. Definitions of these variables and
corresponding literatures are presented in Table (1).
II. LITERATURE REVIEW
According to the resource-based theory, a company Table 1 Definitions of Knowledge Management Practices
should re-examine its assets and make use of the most Knowledge
valuable ones to maximize the economic value (Barney management Definitions
practices
& Baysinger, 1990). To compete and become successful
Knowledge The organization’s ability to create and
in their own market, organizations must now learn to creation develop new and useful ideas and solutions
manage their intangible asset that is “Knowledge”. This regarding various aspects of organizational
practice is generally known as Knowledge Management activities, from products and technological
(KM) or sometimes is referred to as business intelligence processes to managerial practices (Nonaka &
(Ali & Ahmad, 2006). However, there is no standard Takeuchi, 1995; Kianto et al., 2016).
Knowledge Organizational practices that aims at
definition for knowledge management. According to
acquisition collecting information from extra
Lyons (2000), knowledge management is the concept
organizational sources (Cohen & Levinthal,
in which an enterprise consciously gathers, organizes, 1990; Zahra & George, 2002; Darroch, 2005).
shares, and analyzes its knowledge in term of resources, Knowledge Donation and collection of knowledge among
documents, and people skills. In addition, King (2007) sharing the different knowledge units in an
argued knowledge management as the planning, organization (Becerra-Fernandez, Gonzales, &
organizing, motivating and controlling of people, Sabherwal, 2004; Nonaka I., 1991).
Knowledge Processes of applying knowledge to new
processes and systematic in the organization to ensure
application situations in which users can learn and
that its knowledge related assets are continuously generate new knowledge and having effective
improved and effectively employed. storage and retrieval mechanisms(ways) that
The knowledge management literature includes allow the organization to access that their
several categorizations of KM practices and activities. knowledge easily (Lawson, 2003; Lin & Lee,
Nonaka and Takeuchi (1995) divide KM practices into 2005).
Knowledge The activities needed to codify tacit
knowledge creation, incorporation and dissemination.
codification knowledge into explicit form, to store
Demarest (1997) proposes four KM processes: documented knowledge and to provide up-
knowledge construction, embodiment, dissemination to-date documented knowledge to others in
and use. Alavi and Leidner (2001) discuss knowledge the organization (Filius, De Jong, & Roelofs,
creation, knowledge storage/retrieval, knowledge 2000).
transfers and application. In sum, the literature typically

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Table 1 Definitions of Knowledge Management Practices characteristic positively to foster the contextual and
(Cont.) task performance (Razzaq, et al., 2018).
Knowledge Many studies have been done in the area of
management Definitions
knowledge management especially its impact on
practices
Knowledge Activities related to managing personnel
performance (Darroch, 2005; Kuo & Ye, 2010; Delshab,
retention turnover and the associated loss of expert et al., 2020; Etori & Alilah, 2020). Darroch (2005) studied
knowledge - a key strategic resource (Kianto the impact of knowledge management on performance
et al., 2016). in New Zealand organizations and found that
knowledge management have significant impact on
However, the performance of an organization performance. Kuo and Ye (2010) studied the impact of
results collectively from the ability and effort of its IT application and knowledge management capacity on
employees toward achieving organization’s targets. performance and found the significance relationship
Understanding employee work performance is essential between knowledge management capacity and
as the crucial management decisions are based on performance. Delshab and colleagues (2020) studied
individual performance (Sonnentag, Volmer, & the impact of knowledge management on performance
Spychala, 2008). Employees work performance is very of nonprofit sports clubs and found that knowledge
important as it creates the overall organizational management have significant impact on performance.
performance (Berberoglu & Secim, 2015). According to In addition, Etori and Alilah (2020) also study the impact
Armstrong and Taylor (2014) defined performance as of knowledge management on performance of US retail
behavior that accomplishes results. Employee work firms and found that knowledge management
performance is defined as all activities that employees significantly impact the performance. In Myanmar, no
involve to fulfill their obligations toward achieving existing study explores the impact of knowledge
organizational goals and objectives (Kocak, 2006). management practices on employee work performance
Borman & Motowidlo (1993) asserted that performance in banking sector. Therefore, this study aimed to
is classified into two categories; task performance and examine the impact of knowledge management
contextual performance. Task performance refers to practices on employee work performance and,
employees’ direct involvement in practical duties in accordingly, proposed the following hypotheses.
the process of achieving practical outcomes (Borman & H1a: Knowledge creation is positively and
Motowidlo, 1997). Contextual performance refers to significantly related to employee work performance.
extra-role activities that support the social and H1b: Knowledge acquisition is positively and
organizational environment (Borman & Motowidlo, significantly related to employee work performance.
1993). The implementation of knowledge management H1c: Knowledge sharing is positively and significantly
(knowledge management infrastructure and practices) related to employee work performance.
is likely to ensure the provision of work content H1d: Knowledge application is positively and
components and work environment components significantly related to employee work performance.
(Kianto et al., 2016). Some researchers also found that H1e: Knowledge codification is positively and
knowledge management practices can affect the work significantly related to employee work performance.
environment characteristics and work content
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H1f: Knowledge retention is positively and Almahamid et al. (2010) focused on the impact of
significantly related to employee work performance. knowledge sharing on job satisfaction in Jordan.
Spector (1997) defined job satisfaction as the extent However, the literature suggests a weak relationship
to which people like (satisfaction) or dislike between job satisfaction and performance and the link
(dissatisfaction) their jobs. The term job satisfaction is between an individual’s job satisfaction and his/her
close to the concept of employee well-being (Pruzinsky productivity is only very slightly positive (Langton &
& Mihalcova, 2017). Employee well-being is the overall Robbins, 2006). As against that, other authors suggest
quality of an employee’s experience and functioning at that employees’ job satisfaction may affect their
work (Grant, Christianson, & Price, 2007). The definition performance (Gibson, Fichman, & Plant, 1997) and their
includes three dimensions of well-being: psychological, productivity (Hollyforde & Whiddett, 2002). Rasmi, Muis,
physical and social. Well-being is a key factor in both and Pono (2020) studied the impact of compensation,
individual and organizational performance. The impact work environment, and organizational commitment
of poor well-being is reflected in under-performance, towards job satisfaction on the performance and found
absenteeism, presents, sick leave and turnover that job satisfaction has a positive and significant impact
(Pruzinsky & Mihalcova, 2017). on teacher performance. Tentama, Kusuma, & Subardjo
Although a considerable interest regarding the (2019) studied the direct and indirect effect of
connection between knowledge management and job transformational leadership on performance with
satisfaction has been expressed, only few authors have satisfaction as a mediator of the educational staff at the
been able to draw on any structured research in order University of X Yogyakarta. Therefore, this paper
to investigate possible connections (Tsirikas & Katsaros, investigated the mediating effect of job satisfaction on
2014). Ajay and Vandna (2011) have shown that the relationship between knowledge management
there is a positive correlation between knowledge practices and employee work performance. On the
management and employee satisfaction. Overall, basis of proposed research model, following hypothesis
Becerra-Fernandez et al. (2004) argue that knowledge are developed to test the meditating effect on the
management may enhance employees’ flexibility and relationship between variables.
job satisfaction. H2a: The relationship between knowledge creation
Many researchers had been explored the and employee work performance is mediated by job
relationship between knowledge management and satisfaction.
employee job satisfaction (Koseoglu, Bektas, Parnell, & H2b: The relationship between knowledge
Carratier, 2010; Almahamid, Mcadama, & Kalaldeh, acquisition and employee work performance is
2010; Lee & Chaung, 2007). Lee & Chang (2007) mediated by job satisfaction.
examined the relationship between employee job H2c: The relationship between knowledge sharing
satisfaction and knowledge management in an electric and employee work performance is mediated by job
wire and cable group in Taiwan. Singh & Sharma’s satisfaction.
(2011) studied Indian telecommunication industries and H2d: The relationship between knowledge
found a positive association between knowledge application and employee work performance is
management and employee job satisfaction. mediated by job satisfaction.

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H2e: The relationship between knowledge judgment (Sekaran & Bougie, 2016). The convenience
codification and employee work performance is sampling method was applied for the study. A draft
mediated by job satisfaction. questionnaire was prepared based on previous
H2f: The relationship between knowledge retention literature and translated to Myanmar using back
and employee work performance is mediated by job translation method. Then the questionnaire was
satisfaction. distributed to 48 respondents to test pilot study.
Based on the above discussion and proposed Reliability analysis was used as preliminary analysis for
hypotheses, the conceptual framework is illustrated in the pilot study. Based on the results of the pilot study,
Figure (1). This framework argues that the six the questionnaire was refined for the main data
dimensions of KM Practices– knowledge creation, collection. To cover incomplete response, the 400
knowledge acquisition, knowledge sharing, knowledge people who are working in privet bank were targeted as
application, knowledge codification and knowledge the sample size for the study. Then, 600 questionnaires
retention can improve the likelihood of employee work were distributed to private bank employees and out of
performance. This framework also showed that the which 500 questionnaires were returned. Therefore, the
relationship between knowledge management response rate is 83.33% and after eliminating
practices and work performance is mediated by job incomplete response 434 questionnaires were used. In
satisfaction. the main study, after analyzing scale reliability with
Cronbach’s Alpha, regression analysis was used to test
Knowledge the hypotheses specified in the model.
Management

Knowledge Employee A. Research Measurement

Creation Work The study aimed to test the impact of knowledge
Knowledge Performance
management practices on employee work
Acquisition Task
performance
performance, and mediating role of employee job
Knowledge
satisfaction on the relationship between knowledge
Sharing Contextual
management practices and employee work
Knowledge performance
Application
performance. In order to get this aims, six knowledge
Job
Knowledge Satisfaction
management practice dimensions were used. For the
Codificatio measure of the research model, scale items were
Knowledge adopted from various previous studies. For the
Retention knowledge management practice variables, scale items
were adopted from the work of Kianto (2008), Jakob
Figure 1 Conceptual Framework
(2003), Wiig (2003). In this study, job satisfaction is
treated as unidimensional measure and adopted from
III. RESEARCH METHODOLOGY Fernandes and Awamleh (2006). In addition, scale items
The exploratory research was mainly used in this for employee work performance variables were
study. Non-probability sampling gives a variety of adopted from Koopmans et al. (2014).
alternative techniques based on researchers’ subjective
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B. Reliability Analysis significant impact on employee work performance.

For the internal consistency of the scale items used Knowledge sharing, knowledge application, and
in the study Cronbach’s Alpha analysis was used. knowledge retention have positive and significant
Various authors suggested that the value of Cronbach’s impact on employee work performance, meaning that
Alpha above 0.7 means good reliability (Zikmund, hypotheses H1c, H1d, and H1f are accepted. However,
Babin, Carr, & Griffin, 2010). However, Hair, Black, Babin, other three dimensions, knowledge creation,
and Anderson (2014) suggested that Cronbach’s Alpha knowledge acquisition, and knowledge codification
value 0.6 can be used in exploratory research. For the don’t have significant impact on employee work
main study, as shown in Table (2), Cronbach’s Alpha performance – rejecting the hypotheses H1a, H1b, and
values range from 0.609 to 0.9, and all these values H1e. Table (3) shows that 32.6% (R-square = .326) of
were aligned with the criteria set by Zikmund et al. variation in employee work performance is explained
(2010) and Hair et al. (2014). by knowledge management practices variables. Among
these variables, knowledge sharing dimension of
Table 2 Reliability Analysis for the Research Variables knowledge management practices have greatest impact
Sr. Research Variables Number Croanbach’s on employee work performance, the value of beta is
No. of Items Alpha
0.226, which is the largest among other variables.
1. Knowledge Creation 8 .767
2. Knowledge 7 .763
Table 3 Multiple Regression Analysis: Knowledge Management
Acquisition
Practices and Employee Work Performance
3. Knowledge Sharing 7 .900
4. Knowledge 4 .827 Coeffi-
cients R- F-
Application
(Beta) t P Square F sig
5. Knowledge 5 .841
Codification Knowledge .061 1.187 .236 .326 34.383 .000
6. Knowledge Retention 3 .603 Creation
7. Job Satisfaction 7 .877 Knowledge -.036 -.914 .361
8. Task Performance 7 .872 Acquisition
9. Contextual 12 .898 Knowledge .226*** 4.967 .000
Performance Sharing
n=434 Knowledge .183*** 4.538 .000
Application
Knowledge -.005 -.106 .916
IV. ANALYSIS AND DISCUSSIONS Codification
A. Testing the relationship between knowledge Knowledge .117* 2.529 .012
management practices and employee work Retention
performance a. Dependent Variable: Employee Work Performance
To test the effect of knowledge management *** = p<0.001, * = p<0.05, n=434
practices on employee work performance, in order to
reach the first objectives, multiple regression analysis B. Testing the mediation effect of job satisfaction on
was done. As shown in Table (3), 3 out of 6 dimensions the relationship between knowledge management
of knowledge management practices have positive and practices and employee work performance

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To test the mediation effect of job satisfaction on Figure 2 represents the result of the path analysis
the relationship between knowledge management on job satisfaction mediating on the relationship
practices and employee work performance, which can between knowledge creation and employee work
reach the second objective, the methodology performance. Knowledge creation has a positive direct
suggested by Baron and Kenny (1986) was used. effect on employee work performance. As for indirect
Preacher and Hayes, (2004) indicated that most effect, knowledge creation has significant positive
mediation analyses are guided by the procedures impact on job satisfaction and job satisfaction has
outlined by Baron and Kenny (1986). According to this significant positive impact on employee work
methodology, mediation occur when four conditions performance. The results prove that job satisfaction is
are met. First, independent variable (knowledge partially mediating on the relationship between
management practices dimensions) significantly effects knowledge creation and employee work performance.
the mediator (job satisfaction). Second, the mediator
(job satisfaction) significantly effects the dependent Job Satisfaction
.271*** .210**
variable (employee work performance). Third, the
independent variable (knowledge management Knowledge Employee Work
.110**
practices dimensions) has significant effect on Acquisition Performance
dependent variable (employee work performance) in
Knowledge .166*** Employee Work
the absence of the mediator (job satisfaction). Fourth,
Acquisition Performance
when the mediator (job satisfaction) is added to the
*** p<0.001, **p<0.01
model, the effect of independent variable (knowledge
management practices dimensions) on the dependent
Figure 3 Path analysis for knowledge acquisition and employee
variable (employee work performance) is significantly work performance
reduced. Test of the mediation effect of job satisfaction
on the relationship between knowledge management Figure 3 represents the result of the path analysis
practices and employee work performance results are on job satisfaction mediating on the relationship
shown in Figure 2 through 7. between knowledge acquisition and employee work
performance. Knowledge acquisition has a significant
.502***
Job Satisfaction positive direct effect on employee work performance.
.130**
As for indirect effect, knowledge acquisition has
Knowledge .264*** Employee Work significant positive impact on job satisfaction and job
Creation Performance satisfaction has significant positive impact on employee
.330***
work performance. The results prove that job
Knowledge Employee Work
Performance
satisfaction is partially mediating on the relationship
Creation
between knowledge acquisition and employee work
*** p<0.001, **p<0.01
performance.
Figure 2 Path analysis for knowledge creation and employee Figure 4 represents the result of the path analysis
work performance on job satisfaction mediating on the relationship
between knowledge sharing and employee work

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performance. Knowledge sharing has a positive direct direct effect on employee work performance. As for
effect on employee work performance. indirect effect, knowledge application has significant
positive impact on job satisfaction and job satisfaction
Job Satisfaction has significant positive impact on employee work
.630*** -.0003
performance. The results prove that job satisfaction is
Knowledge Employee Work partially mediating on the relationship between
.381***
Sharing Performance knowledge application and employee work
performance.
Knowledge .380*** Employee Work
Sharing Performance
Job Satisfaction
*** p<0.001 .375*** .116**

Figure 4 Path analysis for knowledge sharing and employee Knowledge .284*** Employee Work
work performance Codification Performance

Knowledge .327*** Employee Work

As for indirect effect, although the knowledge
Codification Performance
sharing has significant positive impact on job
*** p<0.001, **p<0.01
satisfaction, job satisfaction doesn’t have significant
impact on employee work performance. Therefore, job Figure 6 Path analysis for knowledge codification and employee
satisfaction doesn’t have mediating effect on the work performance
relationship between knowledge sharing and employee
work performance. Figure 6 represents the result of the path analysis
on job satisfaction mediating on the relationship
Job Satisfaction between knowledge codification and employee work
.234*** .171***
performance. Knowledge codification has a positive
Knowledge Employee Work direct effect on employee work performance. As for
.266***
Application Performance indirect effect, knowledge codification has significant
positive impact on job satisfaction and job satisfaction
Knowledge .306*** Employee Work has significant positive impact on employee work
Application Performance
performance. The results prove that job satisfaction is
*** p<0.001, **p<0.01
partially mediating on the relationship between
knowledge codification and employee work
Figure 5 Path analysis for knowledge application and employee
work performance performance.

Figure 5 represents the result of the path analysis

on job satisfaction mediating on the relationship
between knowledge application and employee work
performance. Knowledge application has a positive

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Job Satisfaction positive impact on employee work performance –

.430*** .100**
accepting hypothesis H1c. This result is aligned with the
Knowledge Employee Work finding of Chaarani and Abiad (2020), Kinyua, SMA, and
.315***
Retention Performance JM (2015), and Darroch (2005). Knowledge application
was found to have significant positive impact on
Knowledge .358*** Employee Work employee work performance – accepting hypothesis
Retention Performance
H1d. This result was aligned with the findings of Kinyua
*** p<0.001, **p<0.01
et al (2015). In addition, knowledge retention also
found to have significant impact on employee work
Figure 7 Path analysis for knowledge retention and employee
work performance performance – accepting hypothesis H1f. This result
was aligned with the findings of Alyoubi et al. (2018).
Figure 7 represents the result of the path analysis However, three dimensions of knowledge management
on job satisfaction mediating on the relationship practices, knowledge creation, knowledge acquisition,
between knowledge retention and employee work and knowledge codification did not find to have
performance. Knowledge retention has a positive direct significant impact on employee work performance –
effect on employee work performance. As for indirect rejecting H1a, H1b, and H13. These results mean that
effect, knowledge retention has significant positive organization’s ability to create, acquire, and
impact on job satisfaction and job satisfaction has documentation of knowledge do not significantly relate
significant positive impact on employee work to employee work performance. These findings are
performance. The results prove that job satisfaction is contrary to most of the previous researches. However,
partially mediating on the relationship between Prusak and Weiss, (2007) argued the reasons behind the
knowledge retention and employee work performance. failure of knowledge practices, such as creation, sharing,
According to these figures (from figure 2 to 7), job and codification, are due to the complexity of
satisfaction is partially mediating the relationship knowledge management and the need to go beyond
between 5 (out of 6) dimensions of knowledge technological systems. Most organizations’ documents
management practices and employee work are presented in an isolated fashion. There is not
performance. However, job satisfaction does not have enough context to enable knowledge workers to make
mediating effect on the relationship between connections between related documents (Prusak &
knowledge sharing and employee work performance. Weiss, 2007).
The second objective of the study was to examine
C. Discussion the mediating effect of job satisfaction on the
One of the objectives of this study was to relationship between knowledge management
investigate the impact of knowledge management practices dimensions and employee work performance.
practices on employee work performance and it was The findings indicate that job satisfaction is partially
found that 3 out of 6 dimensions of knowledge mediating on the relationships between 5 out of 6
management practices has significant positive impact dimensions, except knowledge sharing, of knowledge
on employee work performance. According to multiple management practices and employee work
regression analysis, knowledge sharing has significant performance – accepting hypotheses H2a, H2b, H2d,

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H2e, and H2f. However, job satisfaction doesn’t have study, the results show that knowledge sharing
mediating effect on the relationship between positively and significantly influence on employee work
knowledge sharing and employee work performance – performance. This can be implied that by providing
rejecting hypothesis H2c. donation and collection of knowledge among the
different knowledge units in an organization, the bank
V. CONCLUSIONS can improve work performance of its employees,
A. Theoretical Contribution Further, knowledge application also has a positive and
This study contributes to knowledge management significant influence on employee work performance.
literature in several perspectives. The first contribution By applying bank employee knowledges into new
of this study fulfills theoretical gaps that present in situation and generating their knowledge into new
knowledge management literature and gain and ideas, the bank can obtain effectiveness in their work
understanding of the relationship among knowledge performance. Moreover, knowledge retention also
management practices, job satisfaction and employee positively and significantly influences on employee
work performance. The finding of this study reveals that work performance. Therefore, this can be implied that
knowledge management practices dimensions are, in by managing personnel turnover and the associated
some way, the drivers of bank employees work loss of expert knowledge, bank can maintain employee
performance. The second contribution would be the work performance.
empirical evidence that the relationships between the In addition to the direct effect of knowledge
knowledge management practices dimensions and management practices on employees work
employee work performance are partially mediated by performance, the mediating effects of job satisfaction
job satisfaction of bank employees. This can provide on the relationship between knowledge management
better understanding of a variable that affect the practices and employee work performance has also
relationship between knowledge management studied. The result of the study revealed that when job
practices and employee work performance. satisfaction is mediated, five of six dimensions of
knowledge management practices positively and
B. Managerial Implications significantly influence on employee work performance.
This study makes implication by providing banking These five dimensions of knowledge management
sector with better insights into knowledge management practices are knowledge creation, knowledge
practices, including knowledge creation, knowledge acquisition, knowledge application, knowledge
acquisition, knowledge sharing, knowledge application, codification and knowledge retention. The result of the
knowledge codification and knowledge retention, in study showed that when job satisfaction is mediated,
order to improve employee work performance. Further, knowledge sharing is not positively and significantly
by linking these issues to work performance, this study influence on employee work performance. As a result,
demonstrates the importance of knowledge this can be implied that when the bank emphasized job
management practices for better employee work satisfaction of their employees, all the dimensions of
performance. Therefore, improved employee work knowledge management practices are more considered
performance can be one of the long-term benefits of for the employees work performance except
fulfilling knowledge management best practices. In this knowledge sharing. Therefore, banks manager should

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perceive and recognize the benefits of knowledge objectives 12 hypotheses were tested by multiple
management practices that can increase employee regression methods and the results showed that, in the
work performance. absent of job satisfaction as a mediator, knowledge
sharing, knowledge application, and knowledge
C. Recommendation for future research retention have significant positive impact on employee
This study investigated the impact of knowledge work performance. However, when job satisfaction is
management practices on employee work performance included as mediator, knowledge management
and the mediating role of job satisfaction on the practices variables, except knowledge sharing, have
relationship between knowledge management significant indirect impact on employee work
practices and employee work performance. According performance and their relationships are partially
to the findings of this study, there are several mediated by the mediator.
suggestions for further research. Firstly, the researcher
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