The Impact of Quality Management Skills on Employee Performance: The Mediating Role of Innovation in UAE Banking Institution

Abstract

This study examines the relationship between quality management skills and employee performance, with innovation acting as a mediating variable within the UAE banking sector. The study focuses on three dimensions of quality management skills, namely problem-solving skills, analytical skills, and leadership, and investigates their direct and indirect influence on employee performance within the National Bank of Ras Al Khaimah in the UAE. The study is grounded in the Resource-Based View (RBV), Human Capital Theory, and Dynamic Capabilities Theory, which emphasize the strategic importance of employee competencies and innovation capability in achieving organizational effectiveness and competitive advantage. A quantitative research approach was adopted, and data were collected from 363 employees of the National Bank of Ras Al Khaimah. The study employed Partial Least Squares Structural Equation Modelling (PLS-SEM) using SmartPLS software to evaluate the measurement and structural models and test the proposed hypotheses. The findings revealed that problem-solving skills, analytical skills, and leadership have significant positive effects on employee performance. The results also demonstrated that innovation significantly mediates the relationships between problem-solving skills and employee performance, as well as between leadership and employee performance. However, the mediating effect of innovation on the relationship between analytical skills and employee performance was not significant. The study confirms that quality management skills and innovation capability are essential determinants of employee effectiveness, operational efficiency, and service quality within UAE banking institutions. The study contributes to the existing literature by providing empirical evidence regarding the combined influence of quality management skills and innovation on employee performance in the UAE banking sector. The findings offer practical implications for banking institutions seeking to improve employee competencies, strengthen innovation capability, and enhance organizational competitiveness through effective quality management practices.