Assessing the impact of different components of intellectual capital on the performance of non-profit organisations in the UK

Abstract

The paper examines the relationship between intellectual capital (IC) determinants and performance in non-profit organisations (NPOs) in the UK. It focuses on the productivity of human capital in social housing associations (SHA) and other charities (OC). We analysed the efficiency and effectiveness of 64 NPOs using Pulic's value added intellectual coefficient. We employed ordinary least squares regression analyses on data obtained from annual reports over two years. We found that SHA had lower levels of IC efficiency than OC. Our results revealed that value added intellectual capital coefficient was negatively associated with performance of SHAOC, whereas, the value added capital employed coefficient was positively associated with the effectiveness of SHAOC. We concluded that HC was an important component than capital resources in SHA. Our results were limited due to a small sample and short period that was considered.