The Role of the Intellectual Capital in Raising the Performance of Employees in the Commercial Banks in Saudi Arabia

Authors

  • Wael Sh. Basri Northern Border University, College of Business Administration

Keywords:

Human capital, Intellectual capital, Performance, Relational capital, Structural capita

Abstract

This research aims to measure the extent of the impact of the policy of the commercial banks by the intellectual capital with its three components: the human, structural, and relational based on different authors’ perspectives, and the results of many researches and studies in this area. The research adopted the questionnaire as a study tool to collect data from the study sample consisting of a group of employees in the commercial banks at Northern Border district. The study findings showed that there is a positive relationship of both: the bank’s policy and performance, which are affected by the intellectual capital in a relatively moderate way. The research recommends indeed raising the technical level of employees, improving systems and procedures, supporting innovation, developing the leadership personality of banks’ employees, following the policy of attracting customers, and finally increasing the stocks and shares of banks in the financial market.

Author Biography

Wael Sh. Basri, Northern Border University, College of Business Administration

Northern Border University, College of Business Administration 
College of Business Administration, ArAr. Saudi Arabia
wael.basri@nbu.edu.sa 

Dr. Basri. is currently the Dean of Admission and Registration working, also he
is working as Assistance Professor in College of Business Administration in
Northern Border University. He holds bachelor’s degree in from college of Science, MPA in  Public Administration, Management and Information Technology, PhD in Business Administration  & Management and Information Technology. His area of expertise includes Management and Information Technology , strategic Management, Human Resource Development and
Training, and communication and information Management. My research is focused on Information and communication Management, Human Recourse
Training, Strategic Planning, and Academic Accreditation. Having long been
interested in development my current research Activities re-oriented toward
higher education enhancement throughout information technology and information and communication technology management.


 

References

Abbas, Mohammad, Sihlia (2004), the intellectual capital relationship with the overall qualitymanagement-analytical study and a proposed model, administrative, Year 26, No. 97, June 2004.

Al- Shammari, Sajid, Nasser (2013). The impact of the intellectual capital in the performance of the telecommunications sector in light of the external business environment: An Empirical Study in Kuwait, the Middle East University, Jordan.

Al-Yahya, Khalid bin Othman. (2012) .complexity of Development Management, the gap between the human capital and the institutional reform, the Development Forum, the third annual meeting of the family, Doha, Qatar.

Bilal Khalaf Alsakarneh, the administrative Creativity, Al-Masirah House for publication and distribution. Jordan, 2011.

Cabrita, MR and Bontis N., 2008, Intellectual capital and Business Performance in the Portuguese Banking Industry, International Journal of Technology Management, 43, pp. 212-237.

Chang, S., Chen S. and Lai J., 2008, The Effect of Alliance Experience and Intellectual capital on the Value Creation of International Strategic Alliances, Omega, 36, pp. 298-316.

Chauvin, K. and Hirschey, M., 1993, Advertising, R & D Expenditures and the Market Value of the Firm, Financial Management, 22, pp. 128-40.

Cohen, S. and Vlismas, O. 2013, Analysing the relationship between intellectual capital and performance in local governments, Global Business and Economics Review, Vol. 15, Nos. 2/3, pp. 233-250.

Dechow, P. M., Hutton, A. P., & Sloan, R. G. (1999). An empirical assessment of the residual income valuation model. Journal of accounting and economics,26(1), 1-34.

Eberhart, A., Maxwell, W. and Sidique, A., 2004, An Examination of Long-term Abnormal Stock Returns and Operating Performance following R & D Increases, Journal of Finance, 59, pp. 623-650.

Edvinsson, L. and Malone M., 1997, Intellectual capital.Realizing Your Company's True Value by Findings Its Hidden Brainpower, Harper Collins Publishers, Inc, New York.

Emilio Passetti, Andera Tenucci, Lino Cinquini, and Marco Frey, Intellectual capital communication: evidence from social and sustainability reporting, "XIII Workshop of AIDEA study group on communication to financial markets, Bari, 2009.

Felicia Levy, A Simulated Approach to Valuing Knowledge Capital, PhD. School of engineering and applied science, George Washington University, USA, 2009.

Firer, S., & Mitchell Williams, S. (2003). Intellectual capital and traditional measures of corporate performance. Journal of intellectual capital, 4(3), 348-360.

Hansson, B., 2004, Human capital and Stock Returns: is the Value Premium an Approximation for Return on Human capital?, Journal of Business Finance & Accounting, 31, pp. 333-357.

Hirschey, M. and Weygandt, J., 1985, Amortization Policy for Advertising and Research and Development Expenditures, Journal of Accounting Research, 23, pp. 326-335.

Hsu, YH and Fang W., 2009, Intellectual capital and New Product Development Performance: The Mediating Role of Organizational Learning Capability, Technological Forecasting and Social Change, 76, 5, pp. 664-677.

Hung-Chao Yu, Wen-Yin Wang, and Chingfu Chang, The Pricing of Intellectual Capital in the IT Industry, Department of Accounting, College of Commerce, National Chengchi University, Taipei, 11605, TAIWAN, 2009.

Jamal Khair-Allah, the administrative creativity, Osama House for publication and distribution. Jordan, 2009.

Lev, B., Radhakrishnan, S. and Zhang W., 2009, Organization Capital, Abacus, 45, 3, pp. 275-298.

Majdi Abdel Karim Habib, teaching thinking in the information era, Introduction- concepts - keywords - theories, Delar for the Arab Thought, Cairo, 2003.

Marr, Bernard, Gray, Dina, Neely, Andy Why do Firms Measure Their Intellectual Capital, Journal of Intellectual Capital, Vol.4, Issue, 4 (2003).

Martín-de-Castro, G., Delgado-Verde, M., López-Sáez, P., & Navas-López, J. E. (2011). Towards ‘an intellectual capital-based view of the firm’: origins and nature. Journal of Business Ethics, 98(4), 649-662.

Martínez Torres, A., 2006, Procedure to Design a Structural and Measurement Model of Intellectual capital: An Exploratory Study, Information & Management, 43, pp. 617-626.

McGrattan, ER, and Prescott, EC, 2007, Unmeasured Investment and the Puzzling US Boom in the 1990s, Working Paper 13499, National Bureau of Economic Research.

Mohabbot Ali, Habib Khan, and Zohra Fatima, Intellectual Capital Reporting practices: A Study on Selected Companies in Bangladesh, Journal of business study, Vol. xxix, No.1, 2008.

Mohamed Mahmoud Al-Hileh. Education technology for the thought development between saying and practicing, Al-Masirah House for publication and distribution, Jordan, 2002.

Muhammad Yunus, Nawal and Said, Younis, Mona. (2012). The impact of the intellectual capital on improving the organisational performance, a study of the opinions of a sample of the teachers of the Technical Institute in Mosul, Journal of Economic Sciences, Volume VIII, Issue 30, Mosul, Iraq.

Nour A, Qashi D, and Karakesh J, Intellectual capital: the importance and measurement and disclosure of intellectual study of multiple perspectives, the economic magazine Baghdad College, No. 25, 2010, p. 23.

Ohlson, J. A. (1995). Earnings, book values, and dividends in equity valuation*.Contemporary accounting research, 11(2), 661-687.

Pantzalis, C. and Park, JC, 2009, Equity Market Valuation of Human capital and Stock Returns, Journal of Banking and Finance, 33, pp. 1610-1623.

Ramirez, Y., 2010, Intellectual Capital Models in Spanish Public Sector, Journal of Intellectual Capita, 11, 2, pp. 248-264.

Serrano, C., Mar, C. and Bossi, A., 2003, The Measurement of Intangible Assets in Public Sector using Scaling.

Shibli Ismail al-Suyuti, the reality of the administrative innovation for the administration of the operating banks in the West Bank, the third scientific conference, "Business management organizations: the contemporary global challenges", Faculty of Economics and Administrative Sciences, the Private Applied Science University, Jordan, 27-29 / 4/2009 .

Sougiannis, T., 1994, The Accounting Based Valuation of Corporate R & D, The Accounting Review, 69, pp. 44-68.

Stewart, TA, 1991, Brainpower, Fortune, 123, pp. 44-50.

Suciu, M.; Bratescu, A.; Pocoprus, L. & Lmbrisca, C. 2011. Reporting on Intellectual Capital: Value Driver in the Romanian Knowledge Based Society, International Journal of Education and Information Technologies, 5(2), 215-224.

Sveiby, KE, 1997, The New Organizational Wealth: Managing and Measuring Knowledge Based Assets, Berrett Koehler, San Francisco, CA.

Swart, J., 2006, Intellectual capital: Disentangling an Enigmatic Concept, Journal of Intellectual capital, 7, 2, pp. 136-159.

Talaat Asaad Abdel-Hamid, how to attract customers in distinguished sales, Al-Ahram Co., Cairo, 2007.

Tariq Suwaidan, the principles of creativity, the Gulf Innovation Company for investments and training, Kuwait, 2002.

Techniques, Journal of Intellectual Capital, 4, 2, pp. 249-275.

Wall, A., 2005, The Measurement and Management of Intellectual Capital in the Public Sector. Taking the Lead or Waiting for Direction ?, Public Management Review, 7, 2, pp. 289-303

Downloads

Published

2015-09-04

How to Cite

Basri, W. S. (2015). The Role of the Intellectual Capital in Raising the Performance of Employees in the Commercial Banks in Saudi Arabia. Asian Journal of Business and Management, 3(4). Retrieved from https://ajouronline.com/index.php/AJBM/article/view/3000

Issue

Section

Articles