Impact of Intellectual Capital on the Organizational Performance of Islamic Banking Sector in Malaysia

Abstract

In a contemporary business environment, intellectual capital is considered as the most critical strategic asset for the success of the organization. Intellectual capital is a life blood of the high-tech and knowledge intensive organizations. Banking sector is considered as a knowledge intensive segment. Therefore, there is a great need to nourish the concept and applications of intellectual capital in banking sector. In Malaysia, banking sector is mainly based on conventional banking sector and Islamic banking sector. This study was conducted on Islamic banking sector operating in Kula lumpur Malaysia. A total of 120 individuals were participated in this study to examine the influence of intellectual capital on the organizational performance of Islamic banking sector. Pearson correlation and multiple regression analysis were used to determine the influence of intellectual capital on the performance of Islamic banking sector. The results revealed that intellectual capital has significant influence on the performance of Islamic banking sector in Malaysia.