EXAMINING THE ROLE OF INTELLECTUAL CAPITAL IN DETERMINING THE FIRM PERFORMANCE: A STUDY FROM CONSTRUCTION INDUSTRY OF UAE

Abstract

It is believed that intellectual capital is among the core organizational resources which play their significant in defining the organizational performance. However, its components like human capital, structural capital, relational capital, and spiritual capital have achieved little attention from the context of construction industry. The aim of this study is to examine the role of stated components of intellectual capital on the performance of construction industry in UAE. Primary data was collected through structural questionnaire based on the study items from existing literature. A valid sample of 408 respondents from the construction industry was collected and analyzed through measurement model and structural model assessment. It is observed that all the tests for measurement model assessment have confirms the validity and reliability of the constructs. Furthermore, the findings through structural equation modelling approach suggest that there is a significant and positive impact of human capital, structural capital, spiritual capital, and relational capital on the performance of construction industry. The findings of this study would be of great support for various policy makers like project managers, owners, and various stakeholders specifically in the construction industry. Besides, this study is limited in the form of quantitative analysis, consideration of construction industry, and four components of intellectual capital. Future studies are highly recommended to consider these limitations for providing some better generalization and advance implications too.