THE IMPACT OF INTELLECTUAL CAPITAL ON ORGANIZATIONAL INNOVATION: A STUDY ON BANKING SECTOR OF PAKISTAN

Abstract

The aim of the study is to determine the impact of intellectual capital on organizational innovation in banking sector of Pakistan. The objectives that have been proposed for this particular study are to: study the concept of intellectual capital and its elements, study the impact of intellectual capital on organizational innovation in banking sector of Pakistan and to provide recommendations to the banks operating within the banking sector of Pakistan regarding how they can improve their working environment management practices. The researcher has used survey strategy through which quantitative data is gathered. The quantitative data is gathered through the questionnaires. The questionnaires were circulated among a sample of 186 respondents, selected through convenience based sampling in non-probability sampling technique. The data gathered for the research is assessed and analyzed through statistical software SPSS. The research findings can be concluded by stating that author has identified answers for developed research questions. In fact, it has been noted that researcher has achieved the aim because all of the tested hypotheses accepted representing that there is a positive relationship between variables. In certain, it has been evaluated that intellectual capital in terms of human capital, social capital and organizational capital adds creativity and innovation to the bank. The findings depict that data collected for each of the variable of the study is reliable and authentic. The regression findings of the study concluded that human capital and organizational innovation are moderately associated with each other. Considering the findings being obtained so far, it has been evaluated that social capital is found to be highly effective for the development of organizational innovation. Based on this fact, researcher recommends that future practitioners must employ and integrate measures for developing social capital for the development of organizational innovation.