The mediator role of knowledge management and innovative capability affecting firm performance among commercial banks in Thailand

Firm performance is the ultimate concern among stakeholders. The research objectives are two-fold—to determine the mediator role of knowledge management and innovative capability in driving performance among commercial banks in Thailand, and to provide recommendations and contributions based on the relevant findings. The sample comprising 600 bank officers from the six biggest commercial banks in Thailand was selected using the multi-stage sampling method. A questionnaire was used as the data collection tool and the data were analyzed via structural equation modeling (SEM). The empirically collected data generates a fit conceptual model (x2/df = 1.179, p = 0.116, GFI = 0.976, AGF = 0.951, CFI = 0.978, NFI = 0.970, and RMSEA = 0.011). In the findings, organizational structure, organizational strategy, intellectual capital, innovative capability, and knowledge management have a direct influence on firm performance (p < 0.05). Knowledge management and innovative capability were found to be mediators in the paths of organizational structure, organizational culture, intellectual capital, and firm performance (p < 0.05).