Title: Intellectual capital, ethical climate and organisational performance: an interaction analysis

Authors: Jafar Yazdi Moghaddam; Peyman Akhavan; Gholamhossein Mehralian

Addresses: Department of Industrial Engineering, University of Yazd, Iran ' Department of Productivity, Malek Ashtar University of Technology, Iran ' Department of Pharmacoeconomic and Pharmaceutical Management, School of Pharmacy, Shahid Beheshti University of Medical Sciences, Tehran, Iran

Abstract: Current successful and thriving organisations are those that create intellectual capital and convert it into applicable methods to improve their activities and performance. Furthermore, ethical climate is the key issue for such organisations gaining success in implementing the relevant supportive systems. Accordingly, the purpose of this research is to investigate the mutual interaction of ethical climate, intellectual capital, and organisational performance. To run this study, a conceptual model was designed based on a literature review and employees of a knowledge-based organisation were surveyed using a questionnaire. Structural equation modelling (SEM) was used to test the hypotheses and to identify the relationships among research variables. The results show that there is a positive and strong correlation between ethical climate and organisational performance. The relationship between ethical climate and intellectual capital (IC) is also positive and significant, but no significant relationship is observed between IC and organisational performance.

Keywords: ethical climate; intellectual capital; knowledge-based organisations; Iran; ethics; organisational performance; interaction analysis; structural equation modelling; SEM.

DOI: 10.1504/IJLIC.2015.070160

International Journal of Learning and Intellectual Capital, 2015 Vol.12 No.3, pp.232 - 250

Received: 08 Aug 2014
Accepted: 16 Dec 2014
Published online: 28 Jun 2015 *

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