The Impact of Intellectual Capital on the Performance of Universities

Intellectual capital is a concept that is achieving researcher's attention day by day. The main purpose of this research study is to explore the role and relationship of intellectual capital and its three components on the performance and efficient working of universities in Pakistan. Education sector especially universities were selected because it plays a critical role for the development and growth of knowledge intensive sector. So in this research study 3 components of intellectual capital such as human capital, structural capital and relational capital were taken as independent variables and institution's performance is taken as dependent variable. In this research study a structured questionnaire is adopted from the past research studies and 800 responses have been collected from various public and private university students in Pakistan. Reliability analysis is conducted to check the reliability of constructs and Pearson's correlation is applied to explore the relationship of three components of IC on institution performance. Results indicate that all the three components show a significant relationship with performance but among the three components, the relation of human capital is more prominent.