In the era of a knowledge-centered economy, how organizations manage their human resources plays a decisive role in shaping their overall performance. Yet, the outcomes of such management practices are not consistent across institutions, as they often depend on the level and effective application of intellectual capital (IC). This research examines how knowledge-based human resource management (HRM) practices influence organizational performance, highlighting the moderating effect of IC in universities located in Ethiopia’s Amhara regional state. The study aims to uncover the extent to which intellectual capital enhances or alters the relationship between HRM practices and performance outcomes. Adopting a quantitative research approach, a cross-sectional survey was conducted among 364 employees selected using stratified sampling methods. Data were gathered through structured questionnaires to analyze the connections among the core variables. Findings demonstrate that knowledge-based HRM practices substantially improve university performance, and that intellectual capital strengthens this impact. To fully benefit from IC, universities are encouraged to invest in enabling infrastructures—such as laboratories, technology systems, and innovation hubs—that support their strategic goals. Such initiatives are essential for stimulating knowledge creation and building an innovative culture, which are critical to achieving sustainable success in the competitive academic landscape.
