Impact of Knowledge Management on Employee Performance. Mediating Role of Self-Efficacy

Abstract

Knowledge management (KM), has become essential in the fiercely competitive, unpredictable, and quickly evolving corporate world of today. This study aims to quantify the impact of knowledge management processes (i.e., knowledge creation, knowledge application, and knowledge acquisition) and investigate how they improve employee performance. The study used structural equation modeling (SEM) and partial least squares (PLS) to test the hypothesis experimentally. The data acquired from employee IT and Telecoonucation in Rawalpindi and Islamabad surveys are analyzed. The results indicate that knowledge management (KM) methods and techniques have a noteworthy and favorable effect on employee performance. Employee performance is significantly impacted by knowledge creation, application, codification, and personalization strategies; employee performance is also significantly impacted by knowledge acquisition, application, and creation. The study's results indicate that work-related performance may be influenced by the self-efficacy hypothesis, particularly in terms of motivating various employee-related aspects and achieving corporate goals. The researchers aim to evaluate how self-efficacy impacts individual performance at work and the mechanisms through which self-efficacy affects motivation and performance. Therefore, understanding the practical applications of these findings is essential for inspiring employees and enhancing their performance.

Keywords: Knowledge Management, Employee Performance, Self-Efficacy.