How Does Intellectual Capital Affect Organizational Performance

Introduction

1.1 Background of the study In the knowledge era, higher education institutions are under pressure to utilize intangible assets to produce sophisticated knowledge to the society and to participate in developing the economic growth of countries. Intellectual capital is the key resource for management to achieve strategic objectives . Based on the findings of previous studies , measuring, managing and reporting intellectual capital is an effective approach in the decision making process and in avoiding wasting money and time, and in gaining useless resources that did not contribute to organizations performance. Also, it is important to align strategic objectives with intellectual capital dimensions and performance. And

Another researchers empirically proved that the relationship are inconsistently varied and reported that there is no significant link between the two variables (Gholam hossein et al , 2012) . This calls for the need to conduct more in depth research to investigate the link between intellectual capital components and organizational performance in different industries and countries. The effect of intellectual capital on organizational performance cannot be explained and generalized the result without considering the value , belief , shared vision of employees in organization . indeed intellectual capital components are not able to affect performance if there is no trust between employees and managers and no existing trust between employees to ensure knowledge sharing. No previous research Considering organizational culture and climate in the Investigating of the relationship between intellectual capital and performance in higher education institutions , thus, the findings of this research are unique contributions to the existing

This research is the first study to empirically examine the moderating effect of organizational culture between IC and performance in Saudi higher education institutions. In the Arab world, intellectual capital is a novel concept and not fully understood by organizations (Sharabati, & Bontis, 2010). Also, the relationship between IC and performance is not sufficiently studied. Although past studies have investigated the relationship between intellectual capital and organizational performance in different industries and different countries, the aforementioned researches findings