The Interactional Effects of Intellectual Capital and Knowledge Management on Applying Total Quality Management (TQM): A Field Study on Commercial and Islamic Banks Working In Southern Governorates of Jordan

Abstract

The aim of this study was to identify the nature of the relationship between intellectual capital and knowledge management, and their impact on applying total quality management in several commercial and Islamic banks working in southern governorates of Jordan. A questionnaire was developed to collect data from the sample of the study represented by 31 branches and 130 questionnaires were distributed. 15 were exempted and only 115 questionnaires were considered valid to be analyzed statistically. Analysis of the data indicated the following. First, the average of the respondents' answers regarding the level of intellectual capital development was moderate with a score of 3.44. Second, the mean score with respect to respondents' answers regarding the level of knowledge management processes was also moderate with a score of 3.60. Third, the results of the study have shown that there is a significant and positive relationship between intellectual capital investment and knowledge management processes. Finally, there is a significant and positive impact of both intellectual capital investment and knowledge management processes on applying TQM. This study recommended managers to pay more attention to recruit, retain and develop its talented employees internally and externally as well as to develop technology in knowledge management, especially in the processes of storing and distributing knowledge.