ISSN: 2222-6990
Open access
In today’s competitive environment, in which creativity and innovation play an important part, organizations are becoming increasingly aware that their physical and financial assets are incapable of generating competitive advantages that are sustainable and perceive that it is their intangible assets which allow value to be created for their products and services. Relational capital is one of the crucial elements of intellectual capital especially in the service industry. The main objective of this paper is to investigate the impact of relational capital on the balanced scorecard performance of life insurance companies in Malaysia. There are 5 hypotheses for this study. The researcher used the Smart-PLS software to generate answers for five hypotheses (H1 to H1d). The managers highlighted the importance of meeting their client’s need and wishes, of fostering client loyalty, of collecting and disseminating their feedback and improvement in quality. The main conclusion from this study is that relational capital gives significant and positive impact on life insurance company performance.
LIAM, (2016). Annual Report 2015. Retrieved from https://www.liam.org.my/pdf/AnnualReport2015_LIAM.pdf
Alipour, M. (2012). The effect of intellectual capital on firm performance: an investigation of Iran insurance companies. Measuring Business Excellence, 16(1), 53–66. https://doi.org/10.1108/13683041211204671
Awadallah, E. A., & Allam, A. (2015). A Critique of the Balanced Scorecard as a Performance Measurement Tool Emad A . Awadallah Department of Accounting and Information Systems Assistant Professor of Accounting Faculty of Commerce. International Journal of Business and Social Science, 6(7), 91–99.
Bontis, N. (1998). Intellectual capital?: an exploratory study that develops measures and models. Management Decision, 36(2), 63–76. https://doi.org/10.1108/00251749810204142
Bontis, N., Dragonetti, N. C., Jacobsen, K., & Roos, G. (1999). The Knowledge Toolbox: A Review of the Tools Available to Measure and Manage Intangible Resources. European Management Journal, 17(4), 391–402. https://doi.org/16/S0263-2373(99)00019-5
Bose, S., & Thomas, K. (2007). Applying the balanced scorecard for better performance of intellectual capital. Journal of Intellectual Capital, 8(4), 653–665. https://doi.org/10.1108/02656710210415703
Buenechea-Elberdin, M., Sáenz, J., & Kianto, A. (2018). Knowledge management strategies, intellectual capital, and innovation performance: a comparison between high- and low-tech firms. Journal of Knowledge Management. https://doi.org/10.1108/JKM-04-2017-0150
Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.) (2nd ed.). United States: Lawrence Erlbaum Associates.
Collins, C., Smith, K. G., & Stevens, C. K. (2001). Human resource practices, knowledge-creation capability and performance in high technology firms. Center of Advanced Human Resource Studies, (01–02), 1–36. Retrieved from http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1064&context=cahrswp
Delgado-Verde, M., Castro, G. M., & Navas-Lopez, J. E. (2011). Organizational knowledge assets and innovation capability: Evidence from Spanish manufacturing firms. Journal of Intellectual Capital, 12(1), 5–19. https://doi.org/http://dx.doi.org/10.1108/14691931111097890
Emadzadeh, Afzali, N., Bagheri, A., Rahimpoor, M., Ezadi, F., & Rahmani, M. (2013). Effect of Intellectual Capital on Firm Performance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(2), 98–103.
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(3), 39–50. https://doi.org/10.2307/3151312
Green, A. (2008). Intangible asset knowledge: The conjugality of business intelligence (BI) and business operational data. Business Process Management Journal, 38(2), 184–191. https://doi.org/http://dx.doi.org/10.1108/MRR-09-2015-0216
Huang, H. C., Lai, M. C., & Lin, L. H. (2011). Developing strategic measurement and improvement for the biopharmaceutical firm: Using the BSC hierarchy. Expert Systems with Applications, 38(5), 4875–4881. https://doi.org/10.1016/j.eswa.2010.09.069
Hurmelinna-Laukkanen, P., & Ritala, P. (2010). Protection for profiting from collaborative service innovation. Journal of Service Management, 21(1), 6–24. https://doi.org/http://dx.doi.org/10.1108/09564230910978511
Kianto, A., Hurmelinna-Laukkanen, P., & Ritala, P. (2010). Intellectual capital in service- and product-oriented companies. Journal of Innovation and Business Best Practices, 11(3), 305–325.
Kianto, A., & Waajakoski, J. (2010). Linking social capital to organizational growth. Knowledge Management Research and Practice, 8(1), 4–14. https://doi.org/10.1057/kmrp.2009.29
Montequin, V. R., Fernandez, F. O., Cabal, V. a., & Gutierrez, N. R. (2006). An integrated framework for intellectual capital measurement and knowledge management implementation in small and medium-sized enterprises. Journal of Information Science, 32(6),
In-Text Citation: (Aziz, Razalli, & Othman, 2019)
To Cite this Article: Aziz, T. N., Razalli, M. R., and Othman, A. Z. (2019). The Impact of Relational Capital as an Important Instrument of Increasing Competitiveness On Balanced Scorecard Performance in Life Insurance Agency in Malaysia. International Journal of Academic Research in Business and Social Sciences, 9(12), 495–505.
Copyright: © 2019 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode