Abstract
Intellectual capital is among the new, advanced management notions developed to overcome the inadequacy of previous administrations, to adapt to new situations and forge ahead of the competition. Intellectual capital means the information, experience and skills that offer advantage in competition and reveal the values existing within the structure of an enterprise. These values also exist in the relationship between the enterprise and the environment and with the employees. Although some research studies on intellectual capital (IC) have been conducted, to date no research has been carried out on the effects of IC on qualitative and quantitative organizational performance. For this reason, IC and its effects on firm performance (both qualitative and quantitative) were evaluated in this study. Following the evaluation of the intellectual capital and its sub-elements, the differentiation of the sub-elements is made. Then the reliability and validity of these sub-factors are calculated. The intellectual capital model has been tested by the structural equality model (SEM). According to research results, IC explains 92 per cent of a firm’s performance. The effect of IC on qualitative performance is 0,84, while on quantitative performance it is 0,72. RC impresses qualitative performance with coefficient 0,94, quantitative performance with coefficient 0,60; HC impresses qualitative performance with coefficient 0,92, quantitative performance with coefficient 0,54 less; SC impresses qualitative performance with coefficient 0,90, quantitative performance with coefficient 0,53. According to the results of the research, IC affects both the qualitative and the quantitative performance of firms by supplying extensive knowledge to the managers.
Highlights
As a result of changes in the transition to an information society, as well as changes in management, customers, competition, market structures and organizational sense, the classic paradigms of the concept of governance have changed, and intellectual capital (IC) has become a highly valued aspect of business (Edvinsson, 2002)
Following the development of communication technologies and social networks, as well as changes in the market-place, human capital (HC) was recognised as more important than the other capital components of organisations. This revolution in the understanding of HC resulted in a great deal of research, much of which concluded that HC directly affects firm performance
With the information and explanatory text presented above, IC and its factors and the subdimensions of these factors can be identified, and the research model developed for relationships between factors of IC
Summary
As a result of changes in the transition to an information society, as well as changes in management, customers, competition, market structures and organizational sense, the classic paradigms of the concept of governance have changed, and IC has become a highly valued aspect of business (Edvinsson, 2002). We test the effects of the IC model, as well as the effects of sub-factors on quantitative and qualitative performance by analyzing the structural equation model (SEM) and the structure of intellectual capital. For this purpose, the sub-factors of intellectual capital and its elements, and the sub-factors of the scale of performance were identified by means of a study questionnaire conducted for business owners and managers in Turkey. The effects of the IC components and sub-factors on the quantitative and qualitative performance of enterprises were examined, and recommendations were made to researchers and practitioners in line with the results presented
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