Identifying Interactions among the Components of Intellectual Capital by Using Structural Equation Modeling Technique in the Iranian Banking Industry

Intellectual capital, which has been described as intangible assets, may be used as a source of sustainable competitive advantage. However, intellectual capital components have to interact to create value. The purpose of this empirical study is to investigate the situation of three elements of intellectual capital, i.e. human capital, structural capital, and customer capital, and their inter-relationships in the banking industry of Iran. The study was conducted by using a psychometrically validated questionnaire which was originally administrated in Canada. To explore the constructs and to develop the items, Principal Component Analysis (PCA) and Linear Structural Relations (LISREL) were used. The final specified model demonstrates a meaningful inter-relationship among the elements of intellectual capital. According to the study's findings, in the Iranian banking industry human capital has positive effects on structural capital as well as customer capital. On the other hand, structural capital causes the increase in the growth and strength of customer capital.