The purpose of this study is to investigate the influence of Relational Capital (RC)
on Jordanian Pharmaceutical Manufacturing (JPM) Organizations’ Business Performance
(BP). Practical data were collected by means of a questionnaire. Statistical techniques such
as descriptive statistics, t-test, ANOVA test, correlation, multiple regressions and stepwise
regression were employed. To confirm the suitability of data collection instrument, a
Kolmogorov-Smirnov (K-S) test, Cronbach’s Alpha and factor analysis were used. The
results of the study indicated a positive significant relationship between RC and JMP
Organizations’ BP. Moreover, findings suggest that the JPM Organizations’ RC performance
can clearly explain productivity and profitability more than market valuation. The use of a
single industry study design limits its generalisability to other industries. The data is also
limited to Jordanian Organizations; therefore, extending the analyses to other settings
represents future research opportunities. The research results might help both academics and
practitioners to be more ready to understand the components of RC and provide insight into
developing and increasing them within their Organizations. RC is an important source of
Organizations’ wealth and therefore it should be taken into serious consideration when
formulating the JPM Organizations’ strategy.

Title

European Journal of Business and Innovation Research

Publisher

European Journal of Business and Innovation Research

Publisher Country

United Kingdom

Publication Type

Both (Printed and Online)

Volume

1

Year

2013

Pages

85-100