International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Relationship of Intellectual Capital Dimensions and Performance of Banks in Malaysia: An Exploratory Study
Rosni Abdul Wahid, Rosli Mahmood

Abstract
The purpose of this paper is to explore the relationship between dimensions of intellectual capital and performance of banks in Malaysia. The dimensions studied are human capital, relational capital and structural capital. A quantitative survey method was employed and data were collected using questionnaires. The sample was the branch managers of commercial banks in Malaysia, and they were chosen because they are responsible for strategic decisions at the corporate as well as the strategic business unit levels. A total of 1844 questionnaires were mailed to the respondents, and 345 usable responses were received, giving a response rate of 18.70 percent. Descriptive statistics were used to analyze the characteristics of the respondents including frequency, mean, and measures of reliability, while multivariate technique employed was multiple regressions. The findings revealed that significant relationships exist between human and structural capitals and bank performance, while no significant relationship was found between relational capital and bank performance. These findings may be of help to banks to utilize more of their internal resources to compete and survive the intensely competitive business environment.

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