Intellectual Capital influences Value Creation: Identifying the impacts of constituents of Intellectual Capitalon Value Creation for customers.

Abstract

In recent times, intellectual Capital has gained precedence among the world’s business circles; this is because it enhances the organizational capacity to create value for the customer. The focus of Project Management towards creating Value warrants that due importance should be given to management of intellectual capital along with management of conventional capital. Intellectual capital has many constituent variable; however, this study focuses on the variables: Human Capital and Structural Capital. This study aimed to explore and explain the impact of intellectual capital on the organization’s value creation for the customer, along with analyzing the mediating impact of innovative ability of the employees on the said relation. The study (based in Pakistan, Lahore and Islamabad) focused on the manufacturing and service industry; as earlier studies on intellectual capital were only confined to banking sector. For this purpose, the sample of 219 volunteers provided the data (collected through a questionnaire) for the quantitative analysis of the proposed relations. The results affirm the established hypothesis. The impact of Intellectual Capital on Value creation turns out to be significant, along with innovative ability partially mediating the relation between the two. Following Chapters, discuss the research work done in detail.