Intellectual capital and financial performance of Kenyan state corporations
Abstract
Intellectual Capital is combination of the Intellectual property (IP) held by a business and the
people in that business that can exploit and increase it. The main issue the study aimed to
investigate was Intellectual Capital and Financial Performance of Kenyan State Corporations.
The study main objective was to determine how intellectual capital affects the financial
performance of Kenyan state corporations. The study adopted a descriptive research design in
investigating the concept of intellectual capital and financial performance of Kenyan state
corporations. The target population for the study was formed by the total number of parastatals
currently operating in Kenya which is 192. The study applied a census method to sample the
respondents and therefore the study targeted all the 192 parastatals who were the respondents.
The study used primary data which was collected through self-administered questionnaires. The
data collected was analyzed using SPSS version 16 and presented using descriptive statistics and
inferential statistics. Multiple regression analysis technique was used to determine the effect of
independent variables on the dependent variable. The findings of the study indicate that the
company culture which contains valuable practices of conducting business is the major benefit
resulting from organizational intellectual capital. The findings also indicated that employees
being very highly skilled in their jobs as the major way of human capital to improve the firm’s
performance. The study concluded that organizations should update their database promptly to
enable utilization of organizational capital to spur performance; organizations should strive to
ensure that their employees are considered the best in the industry as a way of utilizing human
capital and hence spurring firm’s performance and organizations should take part in corporate
social responsibility activities as a way of social capital initiative which will create goodwill and
thereby spurring the firm’s performance
Publisher
University of Nairobi