Structural Capital Development within Middle East University

Abstract

The aim of the study is to investigate the impact of Structural Capital (SC) on Middle East University's (MEU) Business Performance (BP). To fulfill the purpose of this study, practical data were collected from 167 participants out of about 3217 elements, by means of a questionnaire. Statistical techniques such as descriptive statistics, t-test, ANOVA test, correlation, multiple regressions and stepwise regressions were employed. To confirm the suitability of data collection instrument, a Kolmogorov-Smirnov (K-S) test, Cronbach’s Alpha and factor analysis were used. The results of the study indicated a positive significant relationship between SC and MEU’s BP. Moreover. The respondents believed that R&D is positively and directly affects the MEU’ BP, and they do not believe that S&P and IPRs affect MEU's BP. Finally, empirical results indicated that there are strong inter-relationships and interactions among the three components of SC. The use of a single organization and/or a single industry study design limits its generalisability to other organizations and/or industries. The data is also limited to Jordanian organizations. Extending the research to other settings represent future research opportunities. SC is an important source of organizations’ wealth and therefore it should be taken into serious consideration when formulating the MEU’ strategy. This strategy formulation process can be enhanced by fully integrating SC indicators into management practices. The data suggest that a similar set of SC indicators could be developed for other organizations and industries whether government, public or private, profitable or non-profitable organizations. The current research may be considered as initiative study that highlights the effect of SC on MEU’ BP. The results can provide the reference for further research about the relationship between SC and BP.