The Impact of Knowledge Management on Performance Through Intellectual Capital in Yemen’s Telecom

Abstract

In the contemporary knowledge-driven economy, organisations are increasingly dependent on knowledge management and intellectual capital as key drivers for enhancing organisational performance. Despite the growing academic interest in these domains, research examining their combined impact remains limited, particularly within the context of the telecommunications sector in developing economies. This study aims to address this gap by identifying the impact of knowledge management on organisational performance through intellectual capital in the Yemeni telecommunications sector. To achieve this objective, the present study employed the quantitative research methodology, incorporating descriptive and analytical approaches. SPSS was utilised for descriptive and preliminary statistical analysis, while PLS-SEM was employed to examine the effects among the variables. The questionnaire was the principal instrument used to collect the necessary data for this study. A structural model has been proposed for the study variables, illustrating the relationship between knowledge management, intellectual capital, and their subsequent impact on organisational performance. The non-proportional stratified random sampling method was employed to select the study sample individuals. The model was evaluated using data obtained from 289 individuals employed in the Yemeni telecommunications sector. The study's findings indicated that knowledge management positively impacts organisational performance (B=0.776; p < 0.05), suggesting that knowledge management plays a significant role in enhancing organisational performance. In addition, intellectual capital was found to have a statistically significant direct impact on organisational performance (B=0.557; p < 0.05), highlighting its contribution to enhancing organisational performance. Furthermore, the results revealed a significant effect of knowledge management on IC (B=0.852; p < 0.05), suggesting that knowledge management enhances intellectual capital, which in turn strengthens its impact on organisational performance. Moreover, the mediation analysis confirmed that intellectual capital mediated the relationship between knowledge management and organisational performance, demonstrating that knowledge management influences organisational performance both directly and indirectly through intellectual capital. The findings contribute to the development of the resource-based view (RBV) and the knowledge-based view (KBV) by demonstrating how knowledge management and intellectual capital interact and jointly influence organisational performance. Furthermore, this study contributes to the extant literature by presenting a model that connects these variables in the telecommunications sector, a field that has not been sufficiently studied in previous research. In light of the aforementioned findings, the study recommended an increased focus on organisational performance and the establishment of organisational units within the organisational structures of the Yemeni telecommunications sector concerned with knowledge management, due to its significant impact on enhancing organisational performance in the Yemeni telecommunications sector.