The Role of Investment in Intellectual Capital in improving organizational performance considering knowledge management: The case study of wireless communication sector in Algeria

Abstract

This study aims to clarify the mediation role played by the knowledge management processes in improving the organizational performance through the investment in the intellectual capital. In order to achieve this goal, we have suggested a model for the companies of the telecommunications sector in Algeria (which includes three operators: Mobilis, Djezzy and Ooredoo) wich is based on investment in intellectual capital with a view to improve their organizational performance in the context of the knowledge management.

To reach this goal, we have used the structural equations modeling according to the PLS-PM approach as a way to solve the issues of this study. The analysis of results shows that the human capital and relational capital have a positive and significant effect on improving knowledge management processes, which contribute effectively in developing the organizational performance. In addition, we found a positive contribution of structural capital but it was limited. Therefore, the study recommended that these companies must be improving their level of investment in structural capital through the development of the systems of creation and sharing of knowledge, which is reflected positively on organizational performance.