This study seeks to investigate empirically, the relationship of knowledge sharing (KS) practices, intellectual capital (IC) practices and performance within the banking organizations in Pakistan. It uses the amended instrument and attempts to collect data from 810 middle level managers through questionnaire of a sample of 42 banks. Structural equation model (SEM) and confirmatory factor analysis (CFA) were applied to assess the nature of relationship and overall fitness of the measurement models among the constructs. The results of confirmatory factor model reveal that all indices satisfactorily meet the thresholds which indicate a well fit of the models. Although, the results of standardized path coefficient postulates that KS and IC practices significantly contribute to banks’ performance; moreover results of standardized path coefficients reveals that human capital, structural capital, and relational capital practices, partially mediate the relationship between KS driven performance. Findings of the study support that all proposed hypotheses are statistically significant (p<0.001) which indicate that IC practices substantially mediate the relationship between KS driven performance; thus corroborating the argument that IC is a valuable strategic resource to leverage the performance based activities.
Keywords: Knowledge Sharing Practices, Intellectual Capital Practices, Performance.