| dc.description.abstract | The study focused on intellectual capital, corporate reputation, corporate culture and
performance of firms listed on Nairobi Securities exchange. The literature shows that
the combined effect of intellectual capital components has an influence on corporate
performance. However, most of the literature have shown contradictory results, with
some showing that intellectual capital has a positive influence on corporate
performance, others show there is no relationship and others negative relationship
between intellectual capital and corporate performance. Different from previous
studies, the current study introduced corporate reputation as a mediating variable and
corporate culture as a moderating variable. The broad objective of this study was to
establish the effect of different combinations of predictor variables (Intellectual
capital, corporate reputation and corporate culture) on corporate performance. It was
guided by four objectives based on the direct influence, mediating effect, moderating
effect and joint effect of the study variables on corporate performance. The study was
founded on resource based view of the firm theory. The review of literature provided
conceptual and empirical gaps that formed the basis of the conceptual model and
conceptual hypotheses. The population of the study consisted of fifty (50) companies
listed on Nairobi Securities Exchange. The study used cross-sectional survey design
where data was collected at one point in time across all the organizations. The survey
period covered four financial years from 2009 to 2012. A survey questionnaire was
the main tool of data collection and was distributed to the 50 heads of human resource
departments in the different firms. The study also utilized secondary data obtained
from Capital Market Authority Statistical bulletins and Nairobi Securities Exchange
Handbook 2012-2013 to collect data on financial performance. The response rate
from the field was thirty four (34) firms (68%). The reliability test showed that study
dimensions were reliable, apart from task-oriented culture that had a cronbach alpha
of 0.262, thus was not considered for further analysis. The study utilized employeeoriented
culture. The researcher divided the hypotheses into two categories; financial
and non-financial. Hypotheses were tested one at a time, beginning with non-financial
where linear regression analysis were conducted to explain the variation among the
variables. Due to the lack of evidence supporting linear relationships between
intellectual capital and financial indicators, optimal scaling was used to test the
financial measures of performance. The study found that there was significant
relationship between intellectual capital and non-financial performance and financial
performance measured by return on assets. The findings also indicated that there was
no significant relationship between intellectual capital and return on equity and
Dividend Yield of firms listed on Nairobi Securities Exchange. It was found that
corporate reputation mediates the relationship between intellectual capital and both
non-financial performance and financial performance. Employee-oriented culture did
not moderate the relationship between intellectual capital and corporate performance.
The study established that the joint effect of intellectual capital, corporate reputation,
and employee-oriented culture on non-financial performance and financial
performance measured by return on assets was greater than individual effect of each
predictor variable providing support for the resource based view of the firm. The
results have diverse implications for policy, practice and research. There were
limitations to the study, but they did not affect the credibility of the results. | en_US |
