ISSN: 2222-6990
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This article discusses on the importance of Intellectual Capital in organization. In this new millennium, the dependence on intellectual capital has an indispensable rise on the economy from industrialization into knowledge-based economy. The main motivation behind this study is to educate that intangible asset is recognized as the key driver of efficiency and economic growth. Moreover, the competitive business environment is compulsory for firm to apply an innovative method to conduct business. Therefore, Intellectual Capital is needed to protect the organizations against the demand of innovation and competitive business environment in today’s knowledge-oriented economy. Nowadays, sources of economic value and wealth encompasses not only the goods manufactured by organizations but also their intangible assets. Hence, intellectual capital will attribute to additional role in generating values. In the knowledge based socio-economic period where intellectual capital has become one of the production factors, performance measurements for organization may not be viable with traditional accounting practices any longer as many people value intellectual somewhat than physical resources. The main idea of exploring Intellectual Capital in banking industry is because of the nature of banking industry as a knowledge intensive industry. Moreover, countries economy and growth highly dependent on monetary and financial stability, thus banking industry plays a crucial role in the development of financial systems.
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In-Text Citation: (Saddam, 2021)
To Cite this Article: Saddam, S. Z. (2021). Intellectual Capital: The Current Affluence of Organizations in Malaysian Banking Industry. International Journal of Academic Research in Business and Social Sciences, 11(1), 11–21.
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