DO HUMAN CAPITAL DRIVERS, KNOWLEDGE MANAGEMENT CAPABILITIES, AND SERVICE INNOVATION LINKS OF ANY IMPACT ON THE ORGANIZATION PERFORMANCE? THE CASE OF INDONESIAN ISLAMIC BANKING

Abstract

This article aims to propose a model of Indonesia's Islamic Banking performance that consists of human capital driver, knowledge management, service innovation, and performance in an organization.  The research was conducted using a survey approach between June 2019 and December 2019, with a sample size of 276 respondents. The data was analyzed using SMAR-PLS to test the model's hypotheses. The research design is focused on empirical analysis of a model constructed based on the research framework on Islamic banking in Indonesia. The objective this study is to elucidate the development of an organizational performance model supported by internal management organization in a case organization of Islamic banking.  Based on the analysis and discussion, the influencing factors in this study concluded that linking the three variables to Islamic banking performance has a positive and significant influence on the efficiency of Islamic banking performance in general, except the human capital drivers. It is because human capital drivers need mediating variables.