Abstract

The goal of this research is to determineif intellectual capital could mediate the influence of knowledge management on the branch performance offices of state-owned banks. If we compare to the ASEAN banks, the performance of state-owned banks is weak, especially in the case of operational cost efficiency depressing the potential for large profits. The low level of performance cannotbeseparatedfrom of the low performance of branch offices. BI's expectation as stipulated in the BI Regulation of 2010 is that the banking sector should perform the maximum role of branch offices because if the management of branch offices understandknow more than head officedoes.The improvement in knowledge management should be made by state-owned banks at branch offices.Beside, it is necessary that aggregation of all knowledge and employee competence that allows companies to gain competitive advantage. In my research, the method of research used is explanatory survey. Structural Equation Modeling (SEM) using LISREL was chosen to test the hypothesis.152 pieces of sample were taken from the whole state-owned banksoffices in West Java. The focus of the assessment is the branch officees of state-owned banks located in the region of West Java because the industry's contribution in the region to GRDP is relatively large. My research concluded that the effect of Knowledge Management on Intellectual Capital was significant. The effect of Knowledge Management and Intellectual Capital on the performance of each Branch Office is significant. In this case intellectual capital played a role in mediating the effect of Knowledge Management to the Branch performance Offices of state-owned banks in West Java. The Branch offices conducting knowledge management continuously resulted the good intellectual capital, which would strengthen the role of knowledge management in improving the branch performance.

Highlights

  • IntroductionState-owned banks have a fairly good positioning at this time

  • On a national scale, state-owned banks have a fairly good positioning at this time

  • The results of previous research are the same as the results of the authors' research that to increase intellectual capital that is effective and has added value requires the continuous application of knowledge management

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Summary

Introduction

State-owned banks have a fairly good positioning at this time. The enforcement agreement the AEC industry of banking services, the severity level of competition will begin to be felt state-owned banks, especially the competition that comes from the banks of Singapore, for example DBS in the year of being declared as e the best bank in Asia Pacific 2014 version of Global Finance. This award was arecognition that the Singapore bank had the right positioning strategy. The ability of state-owned banks to collect third party funds.Supported by a large

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