Effect of Intellectual Capital on Tito

Abstract

Intellectual capital is the total value of all of an organization’s intangible assets. It includes human, relational and structural capital. It takes a holistic view of all the aspects of a business that give it a competitive advantage. This study examined the effect of intellectual capital on competitive advantage on Tito Eatery, using the Intellectual capital dimensions (human, relational and structural capital) relationship with competitive advantage as objectives. 342 employees of Tito Eatery were used, Multiple regression analysis was adopted with the help of SPSS package. The finding shows that human capital has a significant effect on achieving a competitive advantage at (α ≤ 0.05), structural capital enhancing the competitive position at (α ≤ 0.05) and relational capital has a significant influence on achieving a competitive advantage at (α ≤ 0.05). the null hypothesis was rejected. It is recommended researchers should adapt other measurement method as relying on the financial reports to determine the market share.