Intellectual Capital’ effects on firms’ strategic performance − An empirical study in Condor Electronics - Bordj Bou Arreridj

Abstract

The main objective of this thesis is to investigate and analyze the intellectual capital' effect on firms' strategic performance. We have adopted the three dimensions of intellectual capital (human, organizational, and relational capital) based on Kim, Yoo, & Lee (2011) to measure and determine the concept of intellectual capital, we have also adopted the balanced scorecard with its perspectives (Growth & learning, internal business process, customer, and financial perspective) based on Norton & Kaplan (1991) to determine the strategic performance dimensions. We have followed a mixed-methods research design of descriptive method according to the interpretative paradigm. The empirical study was performed in Condor Electronics-Bordj Bou Arreridj, on a random sample of (170) respondents. A systematic approach was adopted to explore the effect of intellectual capital on strategic performance in a variety of organizational contexts and publications. To achieve the outlined objectives, a bibliometric analysis was carried out on extensive research in the period (2003-2023) in the Scopus database, furthermore, analysing the empirical results by investigating empirically the effect of intellectual capital on strategic performance. Among the key findings: The analysis of empirical data revealed a significant positive effect of IC on firms` strategic performance whereas relational capital has the greatest effect on strategic performance, while bibliometric analysis shows that human capital is the most significant dimension of IC followed by organizational capital then relational capital. The main suggestions: Focusing on human capital management as the core asset of intellectual capital, particularly in terms of competencies-based view, knowledge, and experiences alongside organizational capital, which includes various collective practices at both the group and organizational levels. It is also important to develop relational capital within the firm as it has the most effect on the strategic performance of Condor Electronics. Furthermore, addressing the gap in measuring intellectual capital requires a multi-faceted and comprehensive approach to develop and align intellectual capital with quantitative and qualitative measures and strategic goals of the firm.