Relationship of Intellectual Capital With The Organizational Performance of Pharmaceutical Companies in Pakistan

Abstract

Today numerous organizations recognized the worth and importance of intellectual capital. There is no doubt intellectual capital plays a crucial role in the current ever-challenging and aggressive business environment, particularly in knowledge-intensive organizations such as pharmaceutical industry. The organizations that aspire to be branded as being successful and competitive need to demand and find better ways to improve their organizational performance by utilizing their intellectual capital. Generally, intellectual capital comprises human capital, consumer capital and structural capital. Therefore, this study attempted to find the relationship of the components of intellectual capital with the organizational performance of pharmaceutical companies in Pakistan. Three hypotheses, which attempted to test the relationship of the components of intellectual capital with the performance of the pharmaceutical companies in Pakistan, were proposed, and Pearson correlation was used for this purpose. The findings showed that intellectual capital has positive relationship with organizational performance and all three research hypotheses were supported.

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