The effect of intellectual capital on organizational innovation performance

Intellectual capital is known as a key strategic asset for organizational performance and Innovative solutions and its management are critical to maintaining competitive advantage. This paper analyzes the relationship between intellectual capital, competition and driving innovation in 8 factories in the rubber and plastics industry. To assess these factors, the 246 views of managers and employees of companies surveyed were obtained by using random sampling. The used tool in this research was a questionnaire. Reliability was measured via used Cronbach's Alpha formula and in order to study its validity, conceptual-superficial method was used obtaining expert's views that indicated its suitability validity. To analyze the data, the software LISREL 8.8 was used to test the research hypotheses. The results showed that components of intellectual capital (human capital, structural capital, relational capital) to create a competitive advantage and drivers of innovation are impressive.