How Intellectual Capital Reduces Stress on Organizational Decision- Making Performance: the Mediating Roles of Task Complexity and Time Pressure

Previous research claimed that organizational stress, due to task complexity and time pressure, leads to considerably negative effects on the decision-making performance of individuals and organizations. At the same time, intellectual capital (IC), in providing intangible internal and external organizational assets has a positive effect on organizational decision-making performance. This paper develops a structural equation model to analyze the relationships among IC, task complexity, time pressure and decision-making performance. Empirical data are collected from 374 participants, who are from universities, institutes, enterprises, government, with different occupations and expertise. We present two conclusions. First, IC consisting of internal capital, human capital and external capital leads to a reduced complexity of tasks and reduced time pressure and hence reduced organizational stress. Second, reduced organizational stress results in higher levels of performance for organizational decision-making.