Intellectual Capital Impact on Organizations’ Performance

Abstract

The abundance of traditional financial evaluation methods reflects historical performances. It is necessary to consider such elements which add value off-balance sheet towards growth. It is argued that there is the difference between book value and market value of a firm, and that difference could be explained by intellectual capital profile. The study is proposed to investigate the impact of six intellectual capital elements human capital, structural capital, customer capital, technology capital, social capital and spiritual capital on the overall performance of the firms. The impact is diagnosed. A developed questionnaire is used to conduct the study. Correlation analysis depicts the data, OLS is used to conduct the analysis.

Keywords: Intellectual Capital, Firms’ Performance, Service Sector, Pakistan

JEL Classification: G32