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Human Resource Practices and Organization Capability: Role of Knowledge Management

Mamoona Rasheed, Dr. Salman Iqbal
University of Central Punjab Lahore, Pakistan


This paper examines the relationship between HR practices such as training and development, incentives and employees participation, knowledge management and organization capability. Employees always play a vital role in every organization by sharing their knowledge with their colleagues that help to achieve the organization’s capability. There is little research on these construct in developing countries like Pakistan. Pakistan has different HR culture as compare to developed countries. The organizations provide the discussion about the impact of HR practices on knowledge management and organization capability. The quantitative study has conducted from individuals who are working in private banks situated in Lahore. This study focused on primary data collection through questionnaire. The sample size was 120 individual employees. Data analyzed using well-known statistical techniques as Structure Equation Modeling through statistical software AMOS. The results of this study indicate that training and development and incentives both are positively linked with knowledge management. On the other side, employee’s participation has not relationship with knowledge management. Moreover, there is a positive association between knowledge management and organization capability. The findings also suggest that knowledge management is very important for achieving organizational capability. Organizational capability may be improved when HR managers implemented the HR practices effectively. Study has key implications for knowledge management and innovation fields theoretically and practically.
Keywords: Employee’s Participation, Incentives, Training and Development, Organization Capability, Innovation Performance, Knowledge Management
JEL Code: M10
*Corresponding author

International Conference on International Trade Abstract Book/ editörler Kürşat Çapraz Irina Raluca Badea

İstanbul: Hiperlink Yayınları, 2018.

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