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Intellectual capital, ethical climate and organisational performance: an interaction analysis

Author

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  • Jafar Yazdi Moghaddam
  • Peyman Akhavan
  • Gholamhossein Mehralian

Abstract

Current successful and thriving organisations are those that create intellectual capital and convert it into applicable methods to improve their activities and performance. Furthermore, ethical climate is the key issue for such organisations gaining success in implementing the relevant supportive systems. Accordingly, the purpose of this research is to investigate the mutual interaction of ethical climate, intellectual capital, and organisational performance. To run this study, a conceptual model was designed based on a literature review and employees of a knowledge-based organisation were surveyed using a questionnaire. Structural equation modelling (SEM) was used to test the hypotheses and to identify the relationships among research variables. The results show that there is a positive and strong correlation between ethical climate and organisational performance. The relationship between ethical climate and intellectual capital (IC) is also positive and significant, but no significant relationship is observed between IC and organisational performance.

Suggested Citation

  • Jafar Yazdi Moghaddam & Peyman Akhavan & Gholamhossein Mehralian, 2015. "Intellectual capital, ethical climate and organisational performance: an interaction analysis," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 12(3), pages 232-250.
    • Handle: RePEc:ids:ijlica:v:12:y:2015:i:3:p:232-250
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    Cited by:

    1. Sakinah Mat Zin & Ahmad Azrin Adnan & Iskandar Hasan Abdullah, 2017. "Intellectual Capital: How Do Islamic Ethics Rejuvenate It?," Asian Social Science, Canadian Center of Science and Education, vol. 13(3), pages 1-70, March.

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