Intellectual Capital and Organizational Performance

In today’s knowledge economy the tangible assets like intellectual capital has become a source of sustainable growth and competitive lead. Corporations are paying more focus on value creation through these tangible assets. Better organizational performance can be ensured through effective management of firm’s intellectual capital. The main purpose of this study is to highlight the interconnection among intellectual capital constituents and business performances in Pakistan. Intellectual capital constitutes; human capital, innovation capital and customer capital. The study uses exploratory approach to develop conceptual model, propose hypotheses and test these hypotheses quantitatively on scientific basis. The data has been collected through structured self administered survey questionnaires. Structural equation model (SEM) approach is adopted to test hypotheses. The study found overall significant association between overall intellectual capital. Significant associations have also been noted among all three dimensions of intellectual capital and the organizational performance. The implications and applications of the study have also been discussed in detail.