Proceedings of the 3rd European Conference on Intellectual Capital

Fattah Nazem
It means that 0.03% <strong>of</strong> <strong>the</strong> variation in <strong>the</strong> dependant variable <strong>of</strong> intellectual capital management is
explained by a collection <strong>of</strong> <strong>the</strong>se indices. The variable <strong>of</strong> creative problem-solving indicates <strong>the</strong>
highest amount <strong>of</strong> internal consistency in <strong>the</strong> external latent variable. The Lambda rate <strong>of</strong> external
latent variable <strong>of</strong> organizational culture components was 3.37 for x4 (individual initiative), 2.5 for x5
(risk tolerance), 3.01 for x6 (direction), 2.28 for x7 (integration), 1.22 for x8 (conflict tolerance), 2.36
for x 9 (management contact), 2.07 for x10 (control), and 2.31 for x11 (reward system) whose
accumulation form <strong>the</strong> organizational culture variable with <strong>the</strong> effectiveness rate <strong>of</strong> 0.80. It means that
80% <strong>of</strong> <strong>the</strong> variation in <strong>the</strong> dependant variable <strong>of</strong> intellectual capital management is explained by a
collection <strong>of</strong> <strong>the</strong>se indices. The variable <strong>of</strong> individual initiative indicates <strong>the</strong> highest amount <strong>of</strong> internal
consistency in <strong>the</strong> external latent variable.
The Lambda rate <strong>of</strong> internal latent variable <strong>of</strong> intellectual capital management components was 8.77
for y1 (human capital), 8.82 for y2 (structural capital), 9.25 for y3 (customer capital) whose
accumulation form <strong>the</strong> intellectual capital variable. The variable <strong>of</strong> customer capital indicates <strong>the</strong>
highest amount <strong>of</strong> internal consistency in <strong>the</strong> internal latent variable. Since <strong>the</strong> model’s goodness <strong>of</strong> fit
index is 0.93, it can be stated that it has an acceptable fit. The calculated index indicates <strong>the</strong> direct
effect <strong>of</strong> problem solving components and organizational culture on intellectual capital management.
The index is very low for variable <strong>of</strong> creative problem-solving (0.03) but it is very high for <strong>the</strong> variable
<strong>of</strong> organizational culture (0.80). Moreover, <strong>the</strong> model shows that <strong>the</strong> highest direct effect is related to
“integration”, <strong>the</strong> component <strong>of</strong> organizational culture, on intellectual capital management.
The following table presents <strong>the</strong> indices related to <strong>the</strong> model’s fit:
Table 1: Model’s fit indices
Index
Chi-Square
Lewis-Tucker (Non-normed fit index)
Bentler-Bonett’s (Normed fit index)
Hoelter
Root Mean Square Error (RMSE)
GFI
Rate
364.47
0.92
0.91
0.84
0.019
0.93
Interpretation
Full fit (α=0.001)
High fit (more than 0.90)
High fit (more than 0.90)
High fit (more than 0.70)
High fit (equal to or less than 0.05)
High fit (more than 0.90)
The six goodness <strong>of</strong> fit indices indicate presented model’s fit and empirical data. Therefore,
desirability adaptation is provided for <strong>the</strong> designed model and empirical data and can approve it as an
appropriate model for <strong>the</strong> intellectual capital management. On this account, an appropriate model for
intellectual capital management is designed based on <strong>the</strong> structural equations and <strong>the</strong> desirability
adaptation is an indicative <strong>of</strong> structural equation based on creative problem-solving and organizational
culture with intellectual capital. On <strong>the</strong> whole, it can be proposed that this proposed model has full fit
since Chi-square was higher than 300 (X=364.47) and was significant at 0.001.Also, Lewis-Tucker’s
non-normed fit index (0.92) and Bentler-Bonett’s normed fit index (0.91) were both higher than 0.90.
Besides, Hoelter’s index (0.84) was higher than 0.70 and shows high fit. The root mean square error
(RMSE) (0.019) was lower than 0.05 and indicates <strong>the</strong> new model’s fit.
5. Discussion and conclusions
The results <strong>of</strong> path analysis indicated that since model’s goodness <strong>of</strong> fit index is 0.93, it can be stated
that it has an acceptable fit. The calculated index shows <strong>the</strong> direct effect <strong>of</strong> creative problem-solving
components (0.03) and organizational culture (0.80) on intellectual capital management. Moreover,
<strong>the</strong> model shows that <strong>the</strong> highest direct effect is related <strong>the</strong> variable <strong>of</strong> organizational culture in
intellectual capital model.The results <strong>of</strong> this study is in line with <strong>the</strong> research by Edvinsson & Malone
(1997) in that both emphasize <strong>the</strong> important role <strong>of</strong> organizational culture in intellectual capital model
and consider culture and values as <strong>the</strong> core <strong>of</strong> intellectual capital. Also, Sanchez et al. (2007) believe
that organizational culture is a new instrument to evaluate intellectual capital.
In <strong>the</strong>ir view toward organizational culture, Sandra et al. (2007) consider it as a new tool to evaluate
intellectual capital. In <strong>the</strong>ir model, culture is <strong>the</strong> focal point between different assets. In Kaplan &
Norton’s (2004) model <strong>of</strong> intellectual capital, <strong>the</strong>re is a special attention paid to <strong>the</strong> culture and <strong>the</strong>
environment <strong>of</strong> learning. In <strong>the</strong> model, culture is <strong>the</strong> core which interrelate <strong>the</strong> components <strong>of</strong>
intellectual capital. In Brooking‘s (1997) model, culture is considered as an infrastructure asset which
encompasses values, ceremonies, and heroes known by <strong>the</strong> organization’s work force. In <strong>the</strong>
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