Managers should have a keen and sharp view on such capital. Therefore, this study explains relational capital as a cooperative relationship with customers, suppliers, stakeholders, governments and other agencies. Among the other dimensions of IC, technological capital is also essential for organizational value creation. Scholars define the concept with different attributes, i. Further, Bueno et al. Among various conceptualizations, this study proposes technological capital as ICT knowledge, research and development R and D and technological operations as well as infrastructure, which create competitive advantages for organizations 20 , IC can be a productive tool for the organization to make knowledge available for the internal and the external environment Such a tool provides a learning platform for organizations to improve its process, procedures and system to enhance growth as well as successive relationships with customers and suppliers.
However, many developing countries still lack such knowledge technology. According to McNamara 36 , technology shortage results from various factors, such as budget constraint, lack of technological knowledge as well as awareness, incompatible system and low level of IT equipment. Accordingly, this research utilizes the benefits of technological knowledge to envisage its growth in a developing economy. Knowledge is considered as something broader, richer, as well as deeper than data and information. Davenport and Prusak 37 defined knowledge as framed experiences, values, information and knowledge, which is available not only in repositories, but also in organizational processes, procedures, routines and norms.
Organizations that have not developed their knowledge assets fail to survive Knowledge process capability is a multi-faceted concept defined with different approaches and disciplines. Gold et al. However, Filius et al. Workforce obtains knowledge from the internal and the external environment as well as attains solutions through brainstorming meetings.
Moreover, such sessions bring changes in procedures, policies and constructive knowledge for employees. In an organization, knowledge creation takes place through problem-solving and allocating new projects to employees. Lastly, knowledge is implemented by utilizing employees and customer experiences 39 , Organizational performance has been explained in various perspectives. Moreover, organizational performance has been evaluated with different techniques in different studies and the operationalization as well as the conceptualization of such a concept is still progressing 41 , In addition, this study also gauges output per worker, value added per worker, cost of production and new product development 45 - This research conceptual model is grounded on the theoretical perspectives of resource-based view RBV and knowledge-based view KBV.
According to Barney 48 the resource-based theory provides a sustained competitive advantage, which is produced by organizational distinctive resources. Such resources ought to be valuable, rare, inimitable and non-substitutable. Resource-based view theory explains that all resources may not lead to organizational performance simultaneously and that resource utilization may differ across organizations and firms.
In such case, the major challenge of organizations is to notify those resources that directly influence organizational performances 49 , According to Wernerfelt 51 , resources include not only products, but also tangible and intangible assets. Apart from the traditional tangible resources, numerous scholars investigated the intangible resources, such as IC human, structural, relation and technological capital and their effects on organizational performance 27 , 29 , Therefore, the current study used RBV as one of the base theories to depict the relationship between IC dimensions and organizational performances.
Furthermore, KBV theory considers knowledge as one of the most strategic resources of organizations 7 , Sustained competitive advantage can be achieved from such knowledge resources, which are difficult to imitate, considerably complex, heterogeneous and immobile. According to KBV theory, compared with tangible assets, knowledge-related resources highly contribute to attaining improved organizational performances 7 , Kianto et al.
The most central and essential dimension of IC is human capital. Human capital with its inimitability elements brings competitive advantage in organizations The effective utilization of such valuable assets enhances creativity, which, in turn, brings improved organizational performances 27 , Employees need a sound working environment and management support to motivate them to complete their tasks efficiently and effectively. Among the dimensions of IC, structural capital serves as non-human knowledge resources to sustain and improve performances in a competitive business environment 13 , 29 , According to Zangoueinezhad and Moshabaki 59 , companies with conducive structural facilities communicate knowledge to employees, which help them perform well for organizational success.
Similarly, customers and suppliers are indirectly linked to businesses and this relationship is also as important as the other assets. Cousins et al. On the other hand, Garcia-Merino et al. They added that building relations with customers and suppliers takes time, thus, such capital has a delayed effect on performance. Subsequently, cultural effects also matter given that certain countries have already developed such capital that no longer brings competitiveness.
Lastly, technological capital plays an important role in organizations. Increasing business practices as well as improving efficiency and competitiveness have become a primary requirement for businesses 20 , Accordingly, on the basis of the above analysis, authors have proposed the following hypotheses to show that, in a developing country perspective, a strong relationship exists between IC dimensions and organizational performances. Knowledge process capability needs an input, such as IC, to work in parallel and boost its utilization in organizations.
IC and KM may be viewed as referring to knowledge stocks and processes, respectively Human capital plays a lead role to process such knowledge Jaw et al.
Scientific Research Effectiveness The Organisational Dimension
The capabilities as well as teaching and leadership quality of senior managers should be used to produce an open-mind and conducive learning environment to encourage employees to complete their tasks. According to Nonaka et al. Organizations can provide a good working space, a good database to reduce work hours and platforms for interaction to discuss common organizational goals. Such structural facilities promote prevailing knowledge and influence innovation in the organization 3 , Moreover, relational capital is fairly important in the knowledge flow of organizations.
Carmeli and Azeroual 30 asserted that knowledge leads to constructive benefits for organizational performance. Moreover, customers and suppliers have wealth of knowledge and their efficient as well as effective utilization supports the organizations to accomplish the desired objectives Currently, the role of technological capital is highly important in competitive and knowledge-based business organizations.
Such technological capital promotes organizational effort for knowledge processes, i. Lopez et al. To apply such technology, firms must develop a knowledge strategy to provide the basis for the information technology strategy.
In addition, Perez-Lopez and Alegre 16 confirmed that IT plays a dominant role to enhance management processes, which leads to improved organizational performances. Accordingly, the following hypotheses are derived from the aforementioned conceptual model. A nine-item measurement of human capital was adopted form Bontis 29 and Subramaniam and Youndt 3. Structural capital was measured with 6 items developed by Bontis et al. The remaining IC dimensions, such as relational capital and technological capital, were measured with 5 and 6 items, respectively.
Organizational Psychology: The Social Dimension of Work | Introduction to Psychology
The items of both constructs are based on the works of previous researchers 20 , 27 , 34 , Knowledge process capability was measured with 6 items adopted from Filius et al. Finally, organizational performance was measured with 7 items 42 , 44 , The present study is based on perceptual measures in collecting data for analysis. Furthermore, various studies have also used the perceptual measurement of IC and organizational performance 52 , Large companies were selected for this study because such companies are more focused on knowledge and emphasized on IC.
The survey data has been collected from January-June, The respondents of this study are managerial level employees, distributed questionnaires. The self-administrated and surface mail method was used for data collection. After discarding unusable responses, we used usable responses in this study, with a response rate of Statistical analysis: The SPSS software version 22 was used to find out the value of mean and standard deviation. For the measurement of measure, multiple regression analysis, warp partial least square WapPLS version 0.
Warp partial least square is Robust software of structural equation modelling that simultaneously deals with measurement and structural models. Moreover, WapPLS has the ability to automatically deal with missing data and applies different quality fit indices Measurement model: The measurement model examined construct validity convergent validity and discriminant validity and reliability.
Similarly, square root of AVE was checked to measure discriminant validity. Composite reliability and Cronbach alpha were used to measure reliability. Finally, block variance inflation factor was used to measure multicollinearity.
The SPSS software was used to find out the value of mean and standard deviation. The value of mean ranged from 3. All construct mean values were above a midpoint of 2.
The standard deviation values ranged from 0. These values are reported in Table 1. The square root of AVE measures correlations among constructs and a construct has good discriminant validity if respondents fully understand questions related to a construct Table 1 shows the constructs in diagonal values, which refer to the square root of AVE and that all the diagonal constructs were greater than off-diagonal values.
Accordingly, these results confirm that this study achieved discriminant validity. The results of FL ranged from 0.
However, 2 items HC 9 and SC5 , which did not fulfill the criteria, were deleted. The AVE values ranged from 0. The composite reliability ranged from 0. All latent variables are within the acceptable satisfactory level of 0. The WarpPLS 5. The results ranged from 1. Assessment of the structural model: The hypothesized relationships among latent variables were discussed in the structural model Fig. Path coefficients and p-values were also calculated. The hypothesized model showed a model-data fit for all suggested indices. The value of average block variance inflation factor AVIF was 1.
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