Intellectual Capital and its Impact on Business Performance: Evidences from the Jordanian Hotel Industry

This paper aims to examine the relationship between intellectual capital and business performance in the Jordanian hotel industry. The data for this study were collected from 116 managers of four- and five-star hotels. Regression analyses were conducted to test different research hypotheses. The findings showed that all dimensions of intellectual capital have a positive and significant impact on the business performance of Jordanian hotels. In particular, structural capital as one of the intellectual capital dimensions had the strongest and largest contribution to business performance. The extended knowledge about the importance of intellectual capital and its impact on business performance enables practitioners to develop adequate strategies to better manage organisational performance. Not much research has investigated the importance of these resources in the hotel industry and even less research has been undertaken to explore their significance for Arabic countries. To our knowledge, this research is the first large-scale empirical study, which investigates this relationship in the Arab hotel industry.