Intellectual capital and business performance in the pharmaceutical sector of Jordan

Abstract

Purpose

The purpose of this study is to empirically test the relationship between intellectual capital (i.e. human capital, structural capital, relational capital) and business performance within the pharmaceutical sector of Jordan.

Design/methodology/approach

A valid research instrument was utilized to conduct a survey of 132 top‐ and middle‐level managers from all 15 members of the Jordanian Association of Pharmaceutical Manufacturers.

Findings

A correlation and path analysis were conducted to ascertain the validity of the measures and models. Statistical support was found for the hypothesized relationships.

Research limitations/implications

The findings offer valuable insights on the generalizability of intellectual capital in a novel research setting.

Practical implications

Intellectual capital measurement is of primary interest for senior executives of pharmaceutical firms in Jordan.

Originality/value

The research reported is among only a few to investigate the issue of intellectual capital in Egypt and the first to study pharmaceutical firms.

Citation

Sharabati, A.A., Naji Jawad, S. and Bontis, N. (2010), "Intellectual capital and business performance in the pharmaceutical sector of Jordan", Management Decision, Vol. 48 No. 1, pp. 105-131. https://doi.org/10.1108/00251741011014481