Intellectual Capital Development: A Case Study of Middle East University

The purpose of the study was to investigate the influence of Intellectual Capital (IC) on Middle East University s(MEU) Business Performance (BP), through examining the managers’ perceptions regarding significance andpotential use of IC indicators to leverage MEU s performance. The study surveyed academic and administrativestaffs, as well as, Master and Bachelor students at MEU. Practical data were used in the empirical analysiscollected from 167 participants out of 3217 elements, by means of a questionnaire. To confirm the suitability ofdata collection instrument, a Kolmogorov-Smirnov (K-S) test, Cronbach’s Alpha and factor analysis were used.Statistical techniques such as descriptive statistics, t-test, ANOVA test, correlation, multiple regressions andstepwise regressions were employed. The results showed that the participants were almost similar in theirpreferences regarding HC, SC and RC, and they believe that MEU has low implementation regarding these threevariables. The results also indicated a positive significant relationship between IC and MEU s BP. However,respondents believe that the RC has the highest effect on MEU s BP, followed by HC, while they do not believethat SC affects MEU s BP. Furthermore, empirical results indicated that there are strong inter-relationships andinteractions among the three components of IC. The use of a single organization and/or single industry studydesign limits its generalisability to other organizations and/or industries. Extending the analyses to other settingsrepresent future research opportunities. IC is an important source of organizations’ wealth and therefore it shouldbe taken into serious consideration when formulating the MEU s strategy. MEU should coordinate differentperspectives of IC to improve MEU s BP and should assign scales for each of the three components of IC. Thedata suggest that a similar set of IC indicators could be developed for other organizations and industries whethergovernment, public or private, profitable or non-profitable organizations