The role of intellectual capital (IC) on survival or decline of organizations: A case study of EN Bank

Abstract

This study aimed to evaluate the role of Intellectual Capital (IC) on organizations' performance in banking industry. Target population of this study was selected from branches of EN bank in Tehran. Sampling method followed the simple random approach and the data were collected by using a questionnaire. The sample included 227 managers of the EN Bank inTehran province. Factor (construct) validity in description of this study was done. This research discussed the intellectual capital's main components such as 3 aspect of human, structural and client capital and their impact on organizational performance. For hypotheses testing and confirmative factor analysis, path analysis software of LISREL was employed. Research findings demonstrate that however, in branches of EN Bank in Tehran province, there are strong mutual relationships between the components of intellectual capitals (human capital, structural and client capital) but these capitals and the relationships between them are not related to organizational performance. © Maxwell Scientific Organization, 2013.