Purpose: The purpose of this study is to investigate how KM practices can facilitate the improvement of organizational performance of Baitul Mal Banda Aceh City. Design/methodology/approach: This is a descriptive research. However, the constraints that occur within the organization and how KM affects the organizational performance is assessed using quantitative approach in the form of correlational study. The target population is all Baitul Mal Banda Aceh officers with the total of 48 employees. Structural equation modeling - partial least square (SEM-PLS) method was employed to test the hypotheses. Findings: The results revealed that KM positively and significantly influences the performance of Baitul Mal officers, especially in terms of work effectiveness and efficiency. This ultimately has a positive effect on the overall performance of the organization and, in general, adds greater value for the Baitul Mal. The study also indicated that the implementation of KM in Baitul Mal Banda Aceh has also been good. Originality/value: To the best of the author’s knowledge, there are still limited literature that study the performance of Islamic treasury organization. Thus, this paper will contributes to that limited scientific resource and will help Baitul Mal regulators in identifying the gaps that hinder the improvement organizational performance.
