Understanding the Impact of Adopting Intellectual Capital Components on Achieving the Competitive Advantage (Case of Jordanian Insurance Companies)

Abstract

In this paper we examine the level and determinants of competitive advantage in Jordanian insurance companies because of its importance in giving a unique position to companies in the market to be superior to its competitors. However, this study concludes that the relationship between intellectual capitals measured by “Structural Capital” has a significant positive influence on competitive advantage. While the other variables “Human capital and structural capital” have no statistical significant impact on competitive advantage. Despite the importance of this study, it holds some limitations. First, the current research may show other relationships among variable at different points of testing. Second, this research was conducted in small country (Jordan) that is considered to be a developing country. The results may not generalize to other developed countries. Third, despite the fact that the current study has sufficient sample size, the appropriate sampling of the research impedes the generalization of findings.

Keywords: Intellectual Capital, Human Capital, Structural Capital, Relational Capital, Competitive Advantage, Jordanian Insurance Sector.

DOI: 10.7176/EJBM/12-23-08

Publication date:August 31^st 2020