Impact of Structural Capital on Telecommunication Industry's Business Performance: Applied Study in the State of Kuwait

Naser S alShammari


The purpose of this study is to investigate the influence of Structural Capital (SC) on Telecommunication Industry (TI) organizations’ Business Performance (BP), through examining the managers’ perceptions regarding significance and potential use of SC indicators to leverage TI organizations’ BP. The study was considered as a causality study. It investigated the effect of independent variables: systems and programs, research and development and intellectual property rights on the dependent variable; i.e., TI organizations’ BP. The study surveyed the managers working at the TI organizations. To approach the aim of the study, practical data was used in the empirical analysis, collected from 118 persons out of 500 persons, by means of a questionnaire. Several statistical techniques were used. The results of the study indicated a positive significant impact of SC on TI organizations’ BP. Through having a stronger SC within TI organizations, managers can manage and leverage the present SC to achieve further performance improvement in the future. The results also indicated that the managers in TI organizations were almost similar in their preference of systems and programs, followed by research and development. Such results suggest that there is a need to adopt a more comprehensive approach to manage all the three types of SC together. However, systems and programs indicators are the most important indicators to distinguish the organizations from one another, followed by research and development indicators, while they still have a lot of work to do in order to improve intellectual property rights.


Structural capital (SC), Systems and programs (SandP), Research and development (RandD), Intellectual property rights (IPRs), Business performance (BP), Telecommunications industry (TI)


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