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     Research Journal of Applied Sciences, Engineering and Technology


The Role of Intellectual Capital (IC) on Survival or Decline of Organizations: A Case Study of EN Bank

1Hamid Reza Hadjali, 1, 2, 3Meysam Salimi and 1, 2Mehrdad Salehi
1Management of Economical Institution Department, University of Economic Sciences, Tehran, Iran
2Graduate School of Management (GSM), Management and Science University, Malaysia
3Department of Mechanical and Manufacturing Engineering, University Putra Malaysia, 43400 UPM Serdang, Selangor, Malaysia
Research Journal of Applied Sciences, Engineering and Technology  2013  3:738-749
http://dx.doi.org/10.19026/rjaset.5.5017  |  © The Author(s) 2013
Received: June 07, 2012  |  Accepted: July 02, 2012  |  Published: January 21, 2013

Abstract

This study aimed to evaluate the role of Intellectual Capital (IC) on organizations’ performance in banking industry. Target population of this study was selected from branches of EN bank in Tehran. Sampling method followed the simple random approach and the data were collected by using a questionnaire. The sample included 227 managers of the EN Bank in Tehran province. Factor (construct) validity in description of this study was done. This research discussed the intellectual capital’s main components such as 3 aspect of human, structural and client capital and their impact on organizational performance. For hypotheses testing and confirmative factor analysis, path analysis software of LISREL was employed. Research findings demonstrate that however, in branches of EN Bank in Tehran province, there are strong mutual relationships between the components of intellectual capitals (human capital, structural and client capital) but these capitals and the relationships between them are not related to organizational performance.

Keywords:

Client capital, human capital, Intellectual Capital (IC), LISREL organizational performance, path analysis, structural capital,


References


Competing interests

The authors have no competing interests.

Open Access Policy

This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.

Copyright

The authors have no competing interests.

ISSN (Online):  2040-7467
ISSN (Print):   2040-7459
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