The Effect of the Intellectual Capital on Business Performance Empiri

Question: The effect of the intellectual capital on business performance: Empirical study in Australia. Answer: 1: Introduction 1.1 Background of the study The modern day business has many aspects and inherent values. The intangible value of a business, which includes the human capital, inherent value in relationships (also known as relational capital), structural capital, is known as intellectual capital (IC) (Nawaz, Haniffa Hudaib, 2014). It is one of the main tools to ensure the competitive advantage and the economic prosperity of the organization. The intellectual capital is usually utilized by the organizations to ensure the success of the organization by improving parameters such as value creation, innovativeness, creativity, competitive advantage and others (Nawaz, Haniffa Hudaib, 2014). The intellectual capital enhances the corporate performance of the organizations. 1.2 Problem Statement The intellectual capital is a growing focus area of the organizations as the human capital or the human resources is considered as the most crucial components of organizations. Australia possesses a culturally diverse workforce and the important components of the intellectual capital are often misunderstood. There is a need to develop a best practice framework of intellectual capital in Australia. In this study, the influences of IC on the performance of the Australian organizations are discussed. 1.3 Research Aims and Objectives To understand the concept of intellectual capital To critically analyze the effect of intellectual capital To evaluate the factors for improved business performance To determine the relationship between intellectual capital and business performance 1.4 Research Questions What are the positive impacts of intellectual capital? What is the importance of intellectual performance? How the intellectual capital does affect the business performance? How can the organizational performance be improved by intellectual capital? References Armstrong, M., Taylor, S. (2014).Armstrong's handbook of human resource management practice. Kogan Page Publishers. Bhatti, W. A., Zaheer, A. (2014). The Role of Intellectual Capital in Creating and Adding Value to Organizational Performance: A Conceptual Analysis.Electronic Journal of Knowledge Management,12(3). Brenner, M., Coners, A., Matthies, B. (2015). Process capital as strategic success factor. InHandbook on Business Process Management 2(pp. 133-152). Springer Berlin Heidelberg.