Author(s): Zeyad Alkhazali, Issam Aldabbagh, Ayman Abu-Rumman
With the ever-increasing attrition rate of organizational performance in national banks, the Jordanian banks continue to face a number of economic difficulties and imbalances in the economic structure, their results witnessed a decline in many case. This study aims to investigate the effects of Total Quality Management (TQM) on the relationship between Human Resource Management (HRM) practices and Knowledge Management (KM) strategies towards organizational performance of Jordanian banks. Result of Partial Least Squares (PLS) path analysis supports all variables in the hypothesized direct relationship with organizational performance. Relationship between HRM practices (training and development, performance appraisal and compensation) and KM strategies (knowledge acquisition, knowledge conversion, knowledge protection, knowledge application and knowledge sharing) towards organizational performance proved to be significant. Results of the analysis also suggest that TQM moderates the relationship between HRM practices and KM strategies and organizational performance; while the moderation effects of TQM on compensation, knowledge acquisition and organizational performance are not been supported. Findings of this study lend empirical, support to the view that joins value creation chains between variables, can confer competitive advantage. Thus, Jordanian national banks particularly should focus on creating a synergic combination between TQM, HRM practices and KM strategies implementation to enhance their manager’s practices towards creating sustainable effectiveness of organizational performance.