Multidimensional and Comparative Study on Intellectual Capital and Organisational Performance

Abstract

Intellectual capital (IC) as the knowledge‐based equity of organizations is increasingly recognised as an important value contributor to performance. By building on previous research, the study examines the IC components of human capital, structural capital and relational capital as they relate to organisational performance. Following past international studies, a model is developed and statistically tested. A survey is administered to firms across several industries and data is analysed employing structural equation modelling. Recognising that replications and extensions of IC studies are vital to knowledge development, comparisons with international studies are made. The results provide support for the hypotheses where relationships between the IC components and performance are evident. These findings suggest that it is crucial for an organisation to optimise the utilisation of its human capital for the sake of optimising its structural capital, which leads to higher performance. By positioning the study in terms of IC literature, the study offers the ability to compare the present study findings with similar findings across countries.

Hiring and Retaining Skilled Employees in Smes: Problems in Human Resource Practices and Links With Organizational Success

“…Thus, by evaluating the impact on enterprise performance, empirical evidence of the impact of efforts to create the intellectual capital of enterprises combined with such components as human capital, structural capital, relational capital (Urban & Joubert, 2017) is obtained. Similar findings were obtained by Chitsaz et al (2019) on the analysis of the factors of knowledge, skills, and selfefficacy within human capital and their impact on the rate of entrepreneurship activities and national gross product in some countries.…”

Human Capital Factors and Remuneration: Analysis of Relations, Modelling of Influence

“…Based on intellectual capital importance for organization, some researchers proved the core role of its human component for company's value added growth: its significance was the largest comparing with the customer or structural/relational capital (Mačerinskienė andSurvilaitė 2011, Tamošiūnienė andSurvilaitė 2016). Similar research in the field of studying the links between intellectual capital and organizational performance illustrates that the higher performance depends on abilities of organization to optimise the human capital utilisation for the sake of optimising its structural capital (Urban and Joubert 2017). Investigating the knowledge role in profitability increase, it was also argued, that the level of knowledge intensity of companies, which is the feature of intangibility, has strong relations with their financial success (Martins and Lopes 2016).…”

Nexus Between Intellectual Capital and Financial Performance: An Investigation of Chinese Manufacturing Industry

“…Most researchers (Chen et al, 2005;Goh, 2005;Wang, 2011;Lu et al, 2014;Vishnu & Gupta, 2014;Nimtrakoon, 2015;Tripathy et al, 2015;Ma et al, 2017;Urban & Joubert, 2017;Sardo & Serrasqueiro, 2018;Smriti & Das, 2018;Xu & Wang, 2018;Vidyarthi, 2019;Xu & Li, 2019) defined IC in relation to its components-human, structural, and relational capitals. They argued that IC includes the whole knowledge, abilities, and experience of human resource in line with its internal and external organizational structure.…”