An Empirical Investigation of Intellectual Capital Affecting the Performance: A Case of Private Universities in Pakistan

Abstract

The study focused to investigate the effect of intellectual capital on performance of private universities. There are two models used to examine the effect of latent independent variables on latent dependent variables. Two-step structural equation modeling used to test the models to regress the cause and effect relation. The findings depicted that there is very significant effect of intellectual capital on performance of private universities. Human capital, structural capital and relational capital have significant effect on the performance of private sector universities. Human capital is the major contributor in private universities that directly and indirectly affecting the structural and relational capital significantly. To generalize the results to universities the sample size need to increase by including public sector universities and further expand to other service sector.