Title: The effect of the components of intellectual capital on organisational performance: evidence from the telecom industry

Authors: Faisal Masood; Khalil Ahmed Channa; Syed Mir Muhammad Shah

Addresses: Department of Business Administration, Sukkur IBA University, Pakistan ' Department of Business Administration, Sukkur IBA University, Pakistan ' Department of Business Administration, Sukkur IBA University, Pakistan

Abstract: The purpose of the research is to examine the effect of the individual components of intellectual capital: human capital (HC), structural capital (SC), and relational capital (RC) on both financial performance (FP) and operational performance (OP) in the telecom sector of Pakistan. The quantitative research design is used and a questionnaire is distributed among telecom sector employees to collect the data. The findings show overall intellectual capital is significant for both financial performance and operational performance. Among the individual components, human capital is a positive and significant contributor to both financial performance and operational performance. The results specifically indicate that the telecom sector employees are creative in nature and effectively utilise their skills and knowledge. In contrast, structural capital shows an insignificant relationship to both financial performance and operational performance. Structural capital can be improved by bringing flexibility to information systems and operations procedures. The contribution of relational capital is also insignificant that can be enhanced by maintaining long-term relations with customers in the telecom sector.

Keywords: human capital; structural capital; relational capital; financial performance; operational performance.

DOI: 10.1504/IJKMS.2023.133858

International Journal of Knowledge Management Studies, 2023 Vol.14 No.4, pp.457 - 479

Received: 24 Dec 2021
Accepted: 28 Mar 2023
Published online: 04 Oct 2023 *

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