The Most Influential Component of Intellectual Capital Components on The Level of Innovation Among the Faculty at Universities in Saudi Arabia

Abstract

Intellectual Capital (IC) resources such as relational capital, structural capital and human capital are important factors for success in institutions. Evidence indicates that IC is significant in obtaining a competitive advantage. Current universities are slow to promote and encourage innovation despite the IC resources at their disposal. In Saudi Arabia, no study has investigated the impact of IC on the innovation level in the education context. The purpose of this study was to investigate the main influential factor of intellectual capital that leads to more innovation among faculty members in universities operating in Saudi Arabia. The study used a descriptive research design. A mixed method was adopted in the research. This included qualitative and quantitative methods. The study population comprised of the faculty members in Saudi Arabia universities. Primary data was collected via survey questionnaires and semistructured interviews. Quantitative research data was used to measure the opinions in the responses provided by respondents surveyed. The independent variables were human capital, structural capital and social/relational capital. The moderator variables were government Intellectual Capital policies and financial support. The dependent variable was innovation level. Responses from interviews were analyzed qualitatively to help derive key patterns and themes regarding IC and innovation. The quantitative data collected was analyzed using Stata software. The statistical methods employed in the analysis were v descriptive statistics and regression analysis. Qualitative data was analysed using Nvivo 12. Based on the quantitative analysis, the study found that the level of intellectual capital affects the innovation level among faculty members. The government policies toward relational capital and the government policies toward structural capital are the most influential components. Additionally, the results from the qualitative analysis revealed that structural capital is the main factor of the Intellectual capital components that has a dominating influence in intellectual capital support. This study contributes to the IC literature, establishing a clear relationship between IC and university innovation level. The findings will help provide recommendations to decision-makers and research stakeholders to support intellectual capital efforts in universities