Enhancing organisation effectiveness through human, relational and structural capital: an empirical analysis / Amrizah Kamaluddin, Rashidah Abdul Rahman

The research deepens the understanding of the role of intellectual capital in creating corporate wealth from the perspective of a developing nation like
Malaysia. A different economic set up where there exists different technological advancements (Chen, Cheng and Hwang, 2005) and differences in views on the metaphors of knowledge between the West and Asia (Andriessen and Boom, 2007) suggests that, a different implication of intellectual capital may exist. Thus, the research contributes to the intellectual capital literature of the ASEAN
countries where culture, politics, economics and social environment provide a
different perspective and challenges. Resource-based theory views, intellectual
capital as the resources of wealth creation, vital to firm financial performance
and the key driver to achieve sustained competitive advantages (Riahi-
Belkaoui, 2003; Tayles, 2004).The current research investigates the
relationship of Malaysian listed companies’ intellectual capital with
organisation effectiveness. Based on the results through questionnaire survey
of 155 Malaysian companies’ managers, it was found that among the intellectual
capital components, structural and relational capital significantly influence
the organisation’s effectiveness with structural capital as the strongest
predictor. This reveals that structural capital, which comprises investment
enhancement in technology, processes and systems, coupled with relational
capital which includes customer-oriented and market driven activities, are
imperative in determining high performance and competitive advantage