Effect of knowledge management on intellectual capital

In the dynamic and competitive banking industry, knowledge management plays a vital role in enhancing intellectual capital, which is considered a valuable intangible asset for organizations. The purpose of this paper is to examine the effect of knowledge management (KM) on intellectual capital (IC). The study aims to provide a comprehensive understanding of how knowledge management initiatives affect the development, utilization, and enhancement of intellectual capital. The research method used is a quantitative approach, using data collection techniques with survey methods by distributing questionnaires. Data were garnered with questionnaires from 96 employees. To achieve this objective, a quantitative analysis was conducted using the Statistical Package for the Social Sciences (SPSS) as the analytical tool. Moreover, the regression analysis demonstrated that knowledge management practices significantly predict intellectual capital in Commercial Risk Group, Bank Mandiri. The study found that knowledge management processes, including knowledge socialization (KS), knowledge externalization (KE), and knowledge internalization (K1) were significant predictors of intellectual capital. These results emphasize the importance of fostering a culture of knowledge-sharing and continuous learning within the organization to enhance intellectual capital. In conclusion, this study provides empirical evidence of the positive impact of knowledge management on intellectual capital in Bank Mandiri.