Determining the influence of intellectual capital on the organisational performance of banking sector in Kelantan, Malaysia

In this study the researchers attempt to examine the effect of intellectual capital on the organisational performance of banking sector operating in Kelantan, Malaysia. There is no doubt that intellectual capital is considered as the prime asset of an organisation to stay in a competitive business environment. In a knowledge-based economy organisations mainly based on intangible or soft assets. These assets refer to intellectual capital. Intellectual capital is considered as the nucleus of knowledge-based economy. In this study, a total of 250 individuals were involved to examine the role of intellectual capital in the banking sector operating in Kelantan, Malaysia. Multiple regression analysis was used to test the research hypotheses. The findings of this study revealed that four research hypotheses were supported while three research hypotheses were not supported. This study provides empirical findings of the contribution of intellectual capital to banking sector in Malaysia.