Impact of Training Environment and Human Capital on Training Effectiveness in the Banking Industry of Bangladesh: The Mediating Role of Knowledge Management

Abstract: The fast-changing banking sector in Bangladesh requires professional employee training to achieve both service quality excellence and industry competitiveness. This study investigates the impact of the training environment and human capital on training effectiveness, with a particular focus on the mediating role of knowledge management. The literature shows training quality matters but few studies have proved how knowledge management systems in organizations boost training program effectiveness. Staff capabilities alongside training conditions together with knowledge-sharing approaches will be studied to enhance training effectiveness within the banking industry because this research seeks to solve the existing data gap. The study follows a quantitative design that gathers information through structured surveys from 400 Bangladesh-based commercial bank employees. The researchers leverage stratified random sampling which guarantees equal participation from various banking institutions. SEM analysis examines the full chain of connections that training environment and human capital create in training effectiveness through knowledge management as the linking variable. Analyses are performed through SmartPLS for validating the model as well as hypothesis testing. This research demonstrates that training effectiveness receives substantial positive influence from both training environment elements and employees' competencies. Knowledge management acts as a partial mediator between training environment and human capital which shows that good knowledge-sharing practices enhance employee ability to retain and apply training content. Banks which implement structured knowledge management systems report higher improvements in employee performance together with better training outcomes. This analysis builds upon existing knowledge by utilizing human capital theory together with knowledge-based view to determine training input-to-output relationships in banking institutions. Bank policymakers together with HR professionals should establish knowledge-sharing platforms coupled with mentorship programs and collaborative learning environments because the research findings confirm that these investments enhance training effectiveness.