The integrated effect of the components of intellectual capital on organization performance

Abstract

Since the rise of the knowledge‐based economy, many worldwide companies have begun to deal with different frameworks to manage and evaluate the performance of intellectual capital, especially in the area of knowledge management services. This paper presents critically review several articles in the field of intellectual capital in relation with firm performance to shed light on different arguments discussed regarding the subject. It is argued that management should evaluate and prioritize their intellectual capital competitive. Based on the analytic hierarchy process, the study analyses interdependences among intellectual capital elements and determines the impacts of core competences on organizational performance through reviewing several studies. Thus, in attempting to figure out the impact of intellectual capital components on company’s performance, the study will analyze and discusses the results from the studies. The results obtained from this review showed that there is a significant relationship between the intellectual capital and organizational performance, while there might be little evidence to reject this positive effect.