Intellectual Capital Development: A Case Study of Middle East University
Publication Type
Original research

The purpose of the study was to investigate the influence of Intellectual Capital (IC) on Middle East University's
(MEU) Business Performance (BP), through examining the managers’ perceptions regarding significance and
potential use of IC indicators to leverage MEU's performance. The study surveyed academic and administrative
staffs, as well as, Master and Bachelor students at MEU. Practical data were used in the empirical analysis
collected from 167 participants out of 3217 elements, by means of a questionnaire. To confirm the suitability of
data collection instrument, a Kolmogorov-Smirnov (K-S) test, Cronbach’s Alpha and factor analysis were used.
Statistical techniques such as descriptive statistics, t-test, ANOVA test, correlation, multiple regressions and
stepwise regressions were employed. The results showed that the participants were almost similar in their
preferences regarding HC, SC and RC, and they believe that MEU has low implementation regarding these three
variables. The results also indicated a positive significant relationship between IC and MEU's BP. However,
respondents believe that the RC has the highest effect on MEU's BP, followed by HC, while they do not believe
that SC affects MEU's BP. Furthermore, empirical results indicated that there are strong inter-relationships and
interactions among the three components of IC. The use of a single organization and/or single industry study
design limits its generalisability to other organizations and/or industries. Extending the analyses to other settings
represent future research opportunities. IC is an important source of organizations’ wealth and therefore it should
be taken into serious consideration when formulating the MEU's strategy. MEU should coordinate different
perspectives of IC to improve MEU's BP and should assign scales for each of the three components of IC. The
data suggest that a similar set of IC indicators could be developed for other organizations and industries whether
government, public or private, profitable or non-profitable organizations.

Jordan Journal of Business Administration
International Refereed Research Journal
Publisher Country
Publication Type
Both (Printed and Online)