Previous studies indicate that the linkage between human resource management (HRM) practices and organizational performance is tenuous. Some key intermediate elements evidently have not been accounted for. In an era where intangibles have become the source of wealth and progress, intellectual capital could be one of the missing links. Therefore, this study predicts that the three components of intellectual capital, namely, human capital, relational capital, and organizational capital, mediate the relationship between HRM practices and organizational performance. Data from 277 hospitals, with a response rate of 56%, confirm the mediation role of intellectual capital in explaining the effect of HRM practices on organizational performance.
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