Abstract
This study seeks to empirically examine the impact of knowledge sharing (KS) practices on overall performance of banks within the framework of intermediate measures(i.e. knowledge infrastructure and process capabilities).The study adopted the amended instrument and collected the data from 810 middle level managers through questionnaire from a sample of 42 banks. Structural equation model (SEM) and confirmatory factor analysis (CFA) were applied to assess the nature of relationship and overall fitness of the measurement model among the constructs using the AMOS software. The results of confirmatory factor model reveal that all the indices satisfactorily meet the thresholds which indicate a well fit of the models. Although, results of standardized path coefficient reveal that KS practices and components of knowledge management (KM) capabilities (i.e. knowledge infrastructure and process capabilities) significantly contribute overall banks performance in terms of improved product and service quality, customer intimacy (e.g. customers’ satisfaction in terms of improve product quality and services) and operational and financial performance. The findings of study support that all the proposed hypotheses are statistically significant (p <0.001) except H3d and H4d and further indicating that all the components of KM capabilities significantly mediate the relationship between KS driven performance, thus corroborating the argument that KM initiatives are imperative to leverage the performance based activities. This study provides valuable insight for academicians and practitioners and suggests that managers need to build effective knowledge management (KM) mechanisms and should take more initiatives to speed up investment on KM resources because that will help to consolidate KS-oriented performance of banks. Further both KS practices and KM capabilities will produce significant impact on overall performance when they are aligning together which will enable the organization to respond rapidly in ever changing environment.