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III. EUROPEAN CONFERENCE ON SCIENCE, ART & CULTURE
ECSAC’18 – NORTHERN CYPRUS
Gazimağusa, October12-14, 2018

STUDY ON ROLE OF INTELLECTUAL CAPITAL IN
THE ORGANIZATIONS’ PERFORMANCE

P
PP- 1P- 1

Aida SEDIGHINANLOO , Momen FOADMARASHI 2
1

1 Kanikavan-e Shargh Engineering Company - Iran
2 Faculty of Architecture University of Lisbon, Portugal

In the era of hyper competition, the organizations encounter with the environment featured by increasing com-
plexity, globalization, and dynamics. Therefore, organizations face new challenges to continue and establish their in-
stitution and they need to focus highly on the development and enhancement of inner skills and capabilities in order
to overcome these challenges; this can be achieved by fundamental of organizational knowledge and some procedures
which can be used by organizations to obtain better performance in the business world.
In the economic-driven knowledge century, organizations apply two distinct sources to create values and achieve
profits: material or tangible sources and intellectual or intangible sources. On the other hand, it can be stated that
intellectual capital can explain the indicators of companies’ performance better than physical and material capitals. In
fact, traditional financial accounting cannot calculate the real values of companies and only able to measure financial
balance sheet and tangible assets. Intellectual capital can provide a new and complete model in order to observe the real
value of the organization by which the future value of companies can also be calculated. In present knowledge based
economy, intellectual capital is recognized as an important factor to create values and competitive advantage. Present
study is a descriptive qualitative applied research based on a documentary-library data collection try to debate the
relation between intellectual capital and performance in the organizations.
Keywords: Intellectual Capital, Organizations’ Performance, Organizational Strategy, Organizational Knowledge

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