Leveraging intellectual capital for quality management excellence through knowledge management in the banking sector

Abstract

This study examines the mediating role of knowledge management (KM) in the relationship between intellectual capital (IC) and total quality management (TQM) in commercial banks in Sana’a, Yemen. A quantitative cross-sectional research design was adopted, and data were collected through a structured questionnaire from 328 employees and managers representing different departments of commercial banks. The data were analyzed using SPSS and SmartPLS 4 to test the hypothesized relationships and mediation effect. The findings reveal that intellectual capital has significant positive relationships with both knowledge management and total quality management, while knowledge management is also positively associated with total quality management. Furthermore, knowledge management partially mediates the relationship between intellectual capital and total quality management (β = 0.345, p < 0.001), indicating that effective knowledge management practices enhance the contribution of intellectual capital to quality management. These findings suggest that commercial banks can derive greater value from their intellectual capital by developing mechanisms for creating, sharing, and applying organizational knowledge. Practically, bank managers should strengthen knowledge-oriented policies, employee knowledge development, knowledge-sharing mechanisms, and organizational systems that facilitate the effective utilization of intellectual assets. Such practices can support TQM implementation, enhance service quality, and strengthen organizational sustainability and competitive advantage in a rapidly changing, knowledge-based banking environment.