Does organizational ambidexterity mediate the relationship between intellectual capital and financial performance

Abstract

Purpose

This paper aims to examine the relationship between different dimensions of intellectual capital and industrial companies' financial performance. In addition, this paper aims to examine the role of organisational ambidexterity in mediating this relationship.

Design/methodology/approach

This paper adopted a quantitative method using a previously validated questionnaire. The questionnaire copies have been distributed to accountants and accounting managers in the context of industrial companies.

Findings

Findings indicate that there is a positive correlation between all dimensions of intellectual capital and organisational ambidexterity. Furthermore, the connection between intellectual capital dimensions and financial performance is notably positive when it comes to relational capital. Additionally, it was established that the various dimensions of capital and financial performance are interconnected through the intermediary influence of organisational ambidexterity.

Originality/value

This paper provides important contributions to managers, policymakers and stakeholders. Jordanian industrial companies must improve the quality of their work by enhancing levels of intellectual capital and organisational ambidexterity that leads to improving the financial performance of companies. Additionally, managers should identify and capitalise on the benefits of other intangible assets and understand more about how to increase the use level of other intangible assets.

Citation

Taha, N., Siam, W., Alshurafat, H. and Al Shbail, M.O. (2024), "Does organizational ambidexterity mediate the relationship between intellectual capital and financial performance", Journal of Intellectual Capital, Vol. 25 No. 4, pp. 711-743. https://doi.org/10.1108/JIC-04-2023-0072