The Impact of Intellectual Capital on Jordanian Telecommunication Companies' Business Performance

Abstract

The purpose of the study is to investigate the influence of Intellectual Capital (IC) on Jordanian Telecommunication Companies' (JTC) Business Performance (BP). The study surveyed the managers at JTC companies. Practical data were used in the empirical analysis collected from 84 managers out of about 500 managers, by means of a questionnaire. Statistical techniques such as descriptive statistics, t-test, ANOVA test, correlation and multiple regressions were employed. To confirm the suitability of data collection instrument, a Kolmogorov-Smirnov (K-S) test, Cronbach’s Alpha and factor analysis were used. The results showed a positive significant effect of IC on JTCs' BP. The results also indicated that RC is positively and significantly affect JTCs' BP, while SC and RC do not significantly affect JTCs' BP. The Empirical results also indicated that there are strong inter-relationships and interactions among the three components of IC. The use of a single industry study design limits its generalisability to other industries, so extending the analyses to other industries represent future research opportunities. IC should be taken into serious consideration when formulating the companies' strategy. Finally, it is also recommend currying out researches that compare results with other organizations and industries under similar assessment and measurement.