THE EFFECTS OF KNOWLEDGE MANAGEMENT, ISLAMIC LEADERSHIP, AND SELF-EFFICACY ON EMPLOYEE PERFORMANCE VIA JOB SATISFACTION IN BANKS IN BONE REGENCY

Abstract

This study was conducted to examine the influence of Knowledge Management, Islamic Leadership, and Self-Efficacy on employee performance through Job Satisfaction in the banking sector in Bone Regency. The research employed a quantitative method with a correlational design to explore the direct and indirect relationships among the studied variables. Primary data were collected from 202 respondents who were actively employed in various banking institutions operating in Bone Regency. The data were analyzed using Structural Equation Modeling (SEM) to test the hypothesized relationships and to assess both the direct effects of the independent variables and the mediating role of job satisfaction. The findings showed that Knowledge Management, Islamic Leadership, and Self-Efficacy had a positive and significant effect on job satisfaction, indicating that better knowledge-sharing practices, value-based leadership, and stronger employee confidence contribute to higher levels of satisfaction at work. Furthermore, Knowledge Management and Islamic Leadership demonstrated positive but insignificant effects on employee performance, suggesting that these factors alone may not be strong predictors of performance outcomes in the banking context. The results also confirmed that Knowledge Management and Islamic Leadership had positive yet insignificant influences on performance, consistent with previous findings in similar organizational settings. Importantly, Knowledge Management, Islamic Leadership, and Self-Efficacy had a positive and significant effect on employee performance when mediated by job satisfaction. This highlights the crucial role of job satisfaction as an intervening variable that enhances the impact of organizational knowledge practices, leadership approaches, and employees’ belief in their abilities.