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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
Author(s)
Anne Kariuki, Kellen Kiambati
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DOI:10.17265/2328-2185/2017.06.004
Affiliation(s)
Karatina University, Karatina, Kenya
ABSTRACT
The broad objective of this
study was to establish the moderating effect of corporate culture on the
relationship between intellectual capital and organizational performance of
firms listed on Nairobi Securities Exchange. The review of literature provided
conceptual and empirical gaps that formed the basis of the conceptual
hypotheses. Two hypotheses were deduced from general objective: Intellectual
capital has a significant influence on corporate performance; corporate culture
moderates the relationship between intellectual capital and corporate
performance. A cross-section research
design was adopted. A survey questionnaire was the main tool of data collection
and was distributed to the 50 heads of human resource departments in the
different firms’ period covering four financial years from 2009 to 2012. The
study also utilized secondary data obtained from Capital Market Authority
Statistical bulletins and Nairobi Securities Exchange Handbook 2012-2013 to
collect data on financial performance (ROA, ROE, and Dividend Yield). Data were
tested for reliability results showing that study dimensions were reliable,
apart from task-oriented culture that had a Cronbach alpha of 0.262, thus being
not considered for further analysis; thus the study relied on employee-oriented
culture as a measure of corporate culture. The hypotheses were tested using
multiple regression analysis and hierarchical regression respectively. Multiple
regression analysis showed that intellectual capital had a significant
influence on non-financial performance and no significant influence on
financial measures of performance (ROA, ROE, and Dividend Yield). Test for
moderation showed that the interaction term was not significant and thus,
employee-oriented culture did not moderate the relationship between
intellectual capital and corporate performance. The study demonstrates
importance of the influence of intellectual capital on non-financial
performance of firms listed on Nairobi Securities Exchange. The results show
that interplay among human capital, social capital, and organization capital is
important for firms listed on Nairobi Securities Exchange and that the firms
should nurture the employees into sharing their knowledge by creating internal
and external networks and also creating support system within the organization
to retain the knowledge.
KEYWORDS
intellectual capital, corporate culture, employee-oriented culture, task-oriented, corporate performance
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