The Effect of Intellectual Capital on Competitive Advantage in the Jordanian Telecommunication Sector

  • Raed Kareem Kanaan, Dr. Amman Arab University, Jordan
  • Ulya Nawaf Obeidat Department of Business Management, University of Jordan, Amman, Jordan
  • Bader Yousef Obeidat, Dr. Department of Business Management, The University of Jordan, Jordan
  • Mohammad Orsan Al-Zu'bi Department of Business Management, University of Jordan, Amman, Jordan
  • Mohammd Abuhashesh E-Marketing and Social Media Department, Princess Sumaya University for Technology (PSUT), Amman, Jordan

Abstract

This paper sought to examine the effect of intellectual capital on competitive advantage in the Jordanian telecommunication sector. Indeed, intellectual capital is generally assumed to be an important aspect of the organization and one of the most conducive to innovative activity and unrestrained competition. The paper finds that the tripod of intellectual capital, namely, human capital, structural capital, and relational capital has a significant influence on achieving a competitive advantage. Among these three dimensions, relational capital is the most influential component in enhancing the competitive advantage. Considering these results, the research presented many recommendations for future research, the most important ones is implementing this study on other sectors, resort to multi-method of data collection, and the use of probability sampling techniques.

Downloads

Download data is not yet available.

Author Biographies

Raed Kareem Kanaan, Dr., Amman Arab University, Jordan

Bader Yousef Obeidat, Dr., Department of Business Management, The University of Jordan, Jordan

References

Abualoush, S., Bataineh, K., & Alrowwad, A. (2018a).The role of knowledge management process and intellectual capital as intermediary variables between knowledge management infrastructure and organization performance. Interdisciplinary Journal of Information, Knowledge, and Management, 13, 279-309.

Abualoush, S., Obeidat, A., & Tarhini, A. (2018b). The role of employees’ empowerment as an intermediary variable between knowledge management and information systems on employees’ performance. VINE Journal of Information and Knowledge Management Systems, 48(2), 217-237.

Abuhashesh, M., Al-Dmour, R., & Masa'deh, R. (2019a). Factors that affect employees job satisfaction and performance to increase customers’ satisfactions. Journal of Human Resources Management Research, 1-23.

Abuhashesh, M., Al-Dmour, R., & Masa'deh, R. (2019b). Factors that impact job satisfaction and performance among employees in the Jordanian industrial sector. Proceedings of the 32nd International Business Information Management Association Conference, IBIMA 2018-Vision 2020: Sustainable Economic Development and Application of Innovation Management from Regional expansion to Global Growth, 4285-4305.

Abuhashesh, M., Al-Khasawneh, M., & Al-Dmour, R., (2019c). The impact of Facebook on Jordanian consumers’ decision process in the hotel selection. IBIMA Business Review, 1-16.

Abuhashesh, M., Mohammad, S.J., & Al Khasawneh, M. (2019d). The attitude of Jordanian customers towards virtual stores. Int. J. Islamic Marketing and Branding, 4(1), 59-75.

Al-dalahmeh, M., Khalaf, R., & Obeidat, B. (2018). The effect of employee engagement on organizational performance via the mediating role of job satisfaction: The case of IT employees in Jordanian banking sector. Modern Applied Science, 12(6), 17-43.

Al-Dmour, R., Obeidat, B., & Almajali, D. (2015). The practice of HRIS applications in business organizations in Jordan: An empirical study. 4th Scientific & Research Conference on New Trends in Business, Management and Social Sciences (COES&RJ-TK15/1).

Al-Syaidh, N., Al- Lozi, M., & AlHarrasi, J. (2016). Transformational leadership and its role on the effectiveness of employees’ behavior: A theoretical study. Journal of Business & Management (COES&RJ-JBM), 4(1), 14-35.

Amiri, A.N., Jandghi, G., Alvani, S.M., Hosnavi, R., & Ramezan, M. (2010). Increasing the intellectual capital in organization: Examining the role of organizational learning. European Journal of Social Sciences, 14(1), 98-108.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.

Barney, J.B., & Turk, T.A. (2016). 5 superior performance from implementing merger and acquisition strategies: A resource-based. The Management of Corporate Acquisitions: International Perspectives, 105.

Blumberg, B., Cooper, D.R.,& Schindler, P.S. (2014). Business Research Methods (4th ed). United States: McGraw Hill Higher Education

Bontis, N. (1998). Intellectual capital: An exploratory study that develops measures and models. Management Decision, 36(2), 63-76.

Chahal, H., & Bakshi, P. (2014). Effect of intellectual capital on competitive advantage and business performance: Role of innovation and learning culture. International Journal of Learning and Intellectual Capital, 11(1), 52-70.

Chahal, H., & Bakshi, P. (2015). Examining intellectual capital and competitive advantage relationship: Role of innovation and organizational learning. International Journal of Bank Marketing, 33(3), 376-399.

Chen, Y.S. (2008). The positive effect of green intellectual capital on competitive advantages of firms. Journal of Business Ethics, 77(3), 271-286.

Ding, Y. (2010). Study on the management of intellectual capital. International Journal of Business and Management, 5(2), 213.

Duodu, B., & Rowlinson, S. (2016, June). Intellectual capital and innovation in construction organizations: A conceptual framework. In the Engineering Project Organization Conference (EPOC2016).

Dženopoljac, V., Janoševic, S., & Bontis, N. (2016). Intellectual capital and financial performance in the Serbian ICT industry. Journal of Intellectual Capital, 17(2), 373-396.

Edvinson, L.M. (1997). MS, intellectual capital: Realizing your company’s true value by finding it’s hidden roots.

European Commission (2006a). Innovation policy in a knowledge-based economy, Merit Study commissioned by the European Commission Enterprise Directorate General, EUR 17023, available at: www.cordis.lu/innovation-smes/src/studies.html

Grimaldi, M., Cricelli, L., & Rogo, F. (2012). A methodology to assess value creation in communities of innovation. Journal of Intellectual Capital, 13(3), 305-330.

Guthrie, J., Petty, R.M., & Ricceri, F. (2004). External intellectual capital reporting: Contemporary evidence from Hong Kong and Australia.

Hall, R. (1992). The strategic analysis of intangible resources. Strategic Management Journal, 13(2), 135-144.

Hesterly, W., & Barney, J. (2010). Strategic management and competitive advantage. Upper Saddle River, NJ.

Hinterhuber, A. (2013). Can competitive advantage be predicted? Towards a predictive definition of competitive advantage in the resource-based view of the firm. Management Decision, 51(4), 795-812.

Hsu, L.C., & Wang, C.H. (2012). Clarifying the effect of intellectual capital on performance: The mediating role of dynamic capability. British Journal of Management, 23(2), 179-205.

Jaradate, O.M., Al-Samralie, F.A., & Jadallah, N.A. (2012). Intellectual capital and its role in achieving competitive advantage: A field study for the Jordanian income tax service. European Journal of Scientific Research, 69(3), 399-415.

Johnson, G., Scholes, K., & Whittington, R. (2016). Exploring corporate strategy: Text and cases. Pearson Education.

Kamukama, N. (2013). Intellectual capital: Company's invisible source of competitive advantage. Competitiveness Review: An International Business Journal, 23(3), 260-283.

Kavida, V., & Sivakoumar, N. (2009). Intellectual capital: A strategic management perspective. IUPJournal of Knowledge Management, 7(5/6), 55.

Karajeh, H., & Maqableh, M. (2014). Security of cloud computing environment. Proceedings the 23rd IBIMA Conference on Vision 2020: Sustainable Growth, Economic Development, and Global Competitiveness, 2202-2215.

Li, Q., & Chang, C. (2010). The customer lifetime value in Taiwanese credit card market. African Journal of Business Management, 4(5), 702.

Liao, S.S., Chen, C.C., Hu, D.C., Chung, Y.C., & Liu, C.L. (2017). Assessing the influence of leadership style, organizational learning and organizational innovation. Leadership & Organization Development Journal, 38(5).

Ma, H. (2004). Toward global competitive advantage: Creation, competition, cooperation, and co-option. Management Decision, 42(7), 907-924.

Makadok, R. (2010). The interaction effect of rivalry restraint and competitive advantage on profit: Why the whole is less than the sum of the parts. Management Science, 56(2), 356-372.

Manzaneque, M., Ramírez, Y., & Diéguez-Soto, J. (2017). Intellectual capital efficiency, technological innovation and family management. Innovation, 19(2), 167-188.

Maqableh, M., Rajab, L., Quteshat, W., & Khatib, T. (2015). The impact of social media networks websites usage on students’ academic performance. Communications and Network, 7(4), 159-171.

Marr, B. (2004). Measuring and benchmarking intellectual capital. Benchmarking: An International Journal, 11(6), 559-570.

Masa'deh, R. (2012). The impact of management information systems (MIS) on quality assurance (QA): A case study in Jordan. International Journal of Information, Business and Management, 4(2), 93-110.

Masa’deh, R., Obeidat, B., Zyod, D., & Gharaibeh, A. (2015). The associations among transformational leadership, transactional leadership, knowledge sharing, job performance, and firm performance: A theoretical model. Journal of Social Sciences (COES&RJ-JSS), 4(2), 848-866.

Mehralian, G., Rasekh, H.R., Akhavan, P., & Ghatari, A.R. (2013). Prioritization of intellectual capital indicators in knowledge-based industries: Evidence from pharmaceutical industry. International Journal of Information Management, 33(1), 209-216.

Mertins, K., Alwert, K., & Will, M. (2006, September). Measuring intellectual capital in European SME. In Proceedings of I-Know (Vol. 6, pp. 6-8).
Newbert, S.L. (2008). Value, rareness, competitive advantage, and performance: A conceptual‐level empirical investigation of the resource‐based view of the firm. Strategic Management Journal, 29(7), 745-768.

Obeidat, B., Tarhini, A., & Aqqad, N. (2017). The impact of intellectual capital on innovation via the mediating role of knowledge management: A structural equation modelling approach. International Journal of Knowledge Management Studies, 8(3-4), 273-298.

Porter, M.E. (2008). Competitive advantage: Creating and sustaining superior performance. Simon and Schuster.

Putnam, R.D. (1995). Tuning in, tuning out: The strange disappearance of social capital in America. PS-WASHINGTON-, 28, 664-664.

Rocha, E.A. (2012). The impact of the business environment on the size of the micro, small and medium enterprise sector: Preliminary findings from a cross-country comparison. Procedia Economics and Finance, 4, 335-349.

Rodrigues, L.L., Tejedo-Romero, F., & Craig, R. (2017). Corporate governance and intellectual capital reporting in a period of financial crisis: Evidence from Portugal. International Journal of Disclosure and Governance, 14(1), 1-29.

Schiuma, G., & Marr, B. (2001). Measuring and managing intellectual capital and knowledge assets in new economy organizations. Bourne M., Performance Measurement Handbook, GEE Publishing Ltd.

Sekaran, U., & Bougie, R.J. (2016). Research methods for business: A skill building approach. John Wiley and Sons.‏

Seleim, A.A., &Khalil, O.E. (2011). Understanding the knowledge management-intellectual capital relationship: a two-way analysis. Journal of Intellectual Capital, 12(4), 586-614.

Sharabati, A.A., Nour, A.N., & Shamari, N.S. (2013). The impact of intellectual capital on Jordanian telecommunication companies' business performance. American Academic & Scholarly Research Journal, 5(3 special issue), 32.

Sofian, S., Tayles, M., & Pike, R.H. (2004). Intellectual capital: An evolutionary change in management accounting practices. University of Bradford, School of Management.

Stewart, T. (1997). Intellectual capital: The new wealth of organizations. New York: Doubleday Dell Publishing Group.

Subramaniam, M., & Youndt, M.A. (2005). The influence of intellectual capital on the types of innovative capabilities. Academy of Management Journal, 48(3), 450-463.

Sudrajat, D. (2015). Competitiveness improvement of Indonesian logistics service providers: A conceptual model and future research framework. Advanced Science Letters, 21(4), 1049-1052.

Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic capabilities and organizational agility: Risk, uncertainty, and strategy in the innovation economy. California Management Review, 58(4), 13-35.

Wang, Z., Wang, N., & Liang, H. (2014). Knowledge sharing, intellectual capital and firm performance. Management Decision, 52(2), 230-258.

Wheelen, T.L., Hunger, J.D., Hoffman, A.N., & Bamford, C.E. (2015). Strategic management and business policy: Globalization, innovation, and sustainability, Global Edition.

Winter, S.G. (2014). The future of evolutionary economics: Can we break out of the beachhead?. Journal of Institutional Economics, 10(4), 613-644.

Yaseen, S.G., Dajani, D., & Hasan, Y. (2016). The impact of intellectual capital on the competitive advantage: Applied study in Jordanian telecommunication companies. Computers in Human Behavior, 62, 168-175.
Published
2020-01-01
How to Cite
KANAAN, Raed Kareem et al. The Effect of Intellectual Capital on Competitive Advantage in the Jordanian Telecommunication Sector. Journal of Business & Management (COES&RJ-JBM), [S.l.], v. 8, n. 1, p. 1-19, jan. 2020. ISSN 2306-7179. Available at: <http://centreofexcellence.net/index.php/JBM/article/view/jbm.2020.8.1.1.19>. Date accessed: 27 jan. 2020. doi: https://doi.org/10.25255/jbm.2020.8.1.1.19.