Intellectual Capital Development : A Case Study of Middle East University

Abstract

The purpose of the study was to investigate the influence of Intellectual Capital (IC) on Middle East University's (MEU) Business Performance (BP), through examining the managers' perceptions regarding significance and potential use of IC indicators to leverage MEU's performance. The study surveyed academic and administrative staffs, as well as, Master and Bachelor students at MEU. Practical data were used in the empirical analysis collected from 167 participants out of 3217 elements, by means of a questionnaire. To confirm the suitability of data collection instrument, a Kolmogorov-Smirnov (K-S) test, Cronbach's Alpha and factor analysis were used. Statistical techniques such as descriptive statistics, t-test, ANOVA test, correlation, multiple regressions and stepwise regressions were employed. The results showed that the participants were almost similar in their preferences regarding HC, SC and RC, and they believe that MEU has low implementation regarding these three variables. The results also indicated a positive significant relationship between IC and MEU's BP. However, respondents believe that the RC has the highest effect on MEU's BP, followed by HC, while they do not believe that SC affects MEU's BP. Furthermore, empirical results indicated that there are strong interrelationships and interactions among the three components of IC. The use of a single organization and/or single industry study design limits its generalisability to other organizations and/or industries. Extending the analyses to other settings represent future research opportunities. IC is an important source of organizations' wealth and therefore it should be taken into serious consideration when formulating the MEU's strategy. MEU should coordinate different perspectives of IC to improve MEU's BP and should assign scales for each of the three components of IC. The data suggest that a similar set of IC indicators could be developed for other organizations and industries whether government, public or private, profitable or non-profitable organizations.

The Impact of Intellectual Capital Efficiency on Bank Risks: Empirical Evidence From the Saudi Banking Industry

“…In the last few decades, the evaluation and management of IC have become a very vital topic for all types of organizations including banks. In fact, this topic is likely to receive more attention, since traditional accounting system is no longer suitable in explaining the developments in today's business environment (Sharabati et al, 2013). As reported by Ocean Tomo in 2015, about 84% of the S&P 500 firms' market value is driven by their intangible assets, which in other words is their IC.…”

“…Likewise, another study conducted by Ocean Tomo demonstrated that the share of intangible assets in the market value of the S&P 500 index increased from only 17% in 1975 to around 84% in 2015. Although the concept of IC has been used for several years up until now, there is still no clear cut for its definition nor its classification (Sharabati et al, 2013). A Swedish firm named Skandia came up with its first definition of IC in its 1994 annual IC report as "the possession of knowledge, applied experience, organizational technology, customer relationships, and professional skills" (Edvinsson, 1997).…”

Intellectual Capital and Bank Risk in Vietnam—A Quantile Regression Approach

“…Since the late 20th century, Intellectual Capital (IC) has been received much attention from academics and practitioners because it is recognized as the hidden factors behind the significant gap between a firm's market value and its book value (Lev 2001). Even though the idea of IC has been used for several years, there is still no clear-cut for its definition nor its classification (Sharabati et al 2013). Nahapiet and Ghoshal (1998) define intellectual capital as the knowledge and knowing the capability of a social collectivity, such as an organization, intellectual community or professional practice.…”

Intellectual Capital Management in Egypt’s National Centre for Educational Research and Development (NCERD): A case study

“…He argues that adopting a working definition for IC assets in an organization is a natural precondition for measuring. Marr, Schiuma, and Neely (2004), Sharabati, Nour, andAdel (2013), andLoyarte et al, (2018) suggest that organizations adopt an IC measuring and reporting system for internal and external purposes.…”