MEU Human Capital Indicators - Al-Zaytooneh University Conference1

7/25/2019 MEU Human Capital Indicators - Al-Zaytooneh University Conference1

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Human Capital Indicators within Middle EastUniversityDr. Abdel-Aziz Ahmad Sharabati & Prof. Dr. Abdel-Nasser Ibrahim Nour

E-mail: [email protected] College / Middle East University

Amman ordan

Dr. Abdel-Aziz Ahmad Sharabati

Business College Middle East University

E-mail: [email protected]

P.!.Bo": #$%&'( Amman ##'#$ ordan

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Prof. Dr. Abdul-Naser Ibrahim Nour

ean o Business College Middle East University

E-mail:naser#&**@yahoo.0om

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mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Human Capital Indicators within Middle EastUniversity

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Abstract

Purpose:)he aim o the study is to investigate the im9a0t o ;uman Ca9ital 5;C6 on

Middle East Universityere0olle0ted rom #(* students out o a7out %(#, students= 7y means o a ?uestionnaire. 1tatisti0alte0hni?ues su0h as des0ri9tive statisti0s= t-test= A2!3A test= 0orrelation= multi9le regressions and

ste9>ise regressions >ere em9loyed. )o 0onirm the suita7ility o data 0olle0tion instrument= a

4olmogorov-1mirnov 54-16 test= Cron7a0h8s Al9ha and a0tor analysis >ere used.

"indings/#esults/$onclusions: )he results o the study indi0ated a 9ositive signii0antrelationshi9 7et>een ;C and MEU8s BP. )he results also sho>ed that the res9ondents >ere

almost similar in their 9reeren0es o the E indi0ators over EE and C indi0ators.

Moreover= the results also indi0ated that the res9ondents 7elieved that E and EE are

9ositively and dire0tly ae0t the MEUhile they do not 7elieve that C ae0ts MEUever= the EE >as the most im9ortant= ollo>ed 7y E= >hile still they have a lot o

>or to im9rove C indi0ators. inally= em9iri0al results indi0ated that there are strong inter-relationshi9s and intera0tions among the three 0om9onents o ;C.

#esearch %imitations/#ecommendations:)he use o a single organiDation and/or a singleindustry study design limits its generalisa7ility to other organiDations and/or industries.

E"tending the analyses to other settings re9resent uture resear0h o99ortunities.

$ontributions/Practical Implications:;C is an im9ortant sour0e o organiDations8 >ealth

and thereore it should 7e taen into serious 0onsideration >hen ormulating the ordanianUniversities8 strategy. ordanian Universities should 0oordinate dierent 9ers9e0tives o ;C to

im9rove ordanian Universities8 BP and should assign s0ales or ea0h o the three 0om9onents o

;C.

Social Implications: )he results and indi0ators o the 0urrent study may hel9 to deine=measure= manage and develo9 7oth so0ial 0a9ital and individual 0a9ital 5Brain9o>er6. )he data

suggest that a similar set o ;C indi0ators 0ould 7e develo9ed or other organiDations and

industries >hether government= 9u7li0 or 9rivate= 9roita7le or non-9roita7le organiDations.

'pected (alue:)he 0urrent resear0h may 7e 0onsidered as initiative study that highlightsthe ee0t o ;C on ordanian Universities8 BP. )his study e"tends 9rior resear0h8s vie>9oint

a7out the linear relationshi9 7et>een ;C and organiDations8 BP >ith em9iri0al eviden0e.

)e! *ords: ;uman Ca9ital 5;C6= earning and Edu0ation 5E6= E"9erien0e and

E"9ertise 5EE6= nnovation and Creation 5C6= Middle East University 5MEU6= BusinessPerorman0e 5BP6.

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Introduction and Siterature Teview8

eVnition oW HC8

uvwxyv z{w|yv}~v {} zyy v z{w|{ { xy hi v

wv w {vyyvy xy hi: vx{{ v: y: hEEi }v{v} vwz w z{w|yv}~v {} zyy vw}v} { yw vy w {{~ {}v}w{ xwv yw xw}:yv vxyv{ hEEi }T { v }v{v} y |{ { vw{w w{v xw}w{ w:wvwv wv}{wz hEDDi }}v}T { vw{w v v} w }vvv zyy {} z{w|yv}~v {}}y }| xw{ w ~v{vv wx wyv {{ww{ {} xw} { w xvw{v: vwvw} {} z hEDDi xw{w{v}T uvwxyv v v w~{w{~vv v xw}{~ v {vyyvy xy hi }v }vv{w{{} yv }}v}: wvwv ux}w hEDDi }vv} {v{~{ v zyy {} z{w|yv}~v y {} {vv} { w}v w vw{}{~ vv wy {{ww {} yv}v: {yy {vz v:y: hEDi }v{v} v {{~yv w w v xw}w{ {~{ {vyyv zyy {} wxvv{v { v xw}w{ {} xww{ w~ww} {} vv:

Importance oW HC8

yw yy wy {} xw{v ~vv} xw{ v xw{v w {} }v vv w{ u v w{}vv} v wv w v {} vv

w~{w{: vxw hEEJi v}T v~ |wzwv xy{{{~}}vv |w y {vv}T hDi y~{{~ { w~{w{ xw~ | v{ {} vv~{~ w{ {} xw~ ~wy hi }vvywx{~yw{~v v~v w {~ }vvywx{~ {} v{{~ w vvxw~ ~wy: {} hEEi }T w {w{~ { vwxyv} {} |w |vyy{v} |vyy}vvywxv} |vyyxxvv}{} |vyy{~v} w}v{ w~{w{ {{w vv v yyv{~v wv ~ywyw{ ~v: w{~ hEEFi v{w{v}T uvwxyv vw{~ xwv w{v{v} | v{{~ v w~{w{ w{ {} v{v {vv} {} vxyw v xw}vy: v{zv hEEi vywv}Tvvywx{~ {} {~{~ { wxww{ vv vv{v w{v{vv{ w v: v hEDDi xwyv}T w w~{w{ w vv}{ w} x}y {~{~ {} {v{~y wxvv zvxyv{v{v w v xxyv} w y~{{~ | wxwv v~ {}wvv: vww} v: y: hEDDi v}T ww{~ vyx w {vvv wvyy xvw{v w ~{w{ {} w ~v wxvv }{~v: {} u{} hEDi }T {ww{ v v} w wxv

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|wzwv {} w xw}v v w~{w{ | ~yxv w v zyy~x |{ v w~{w{ vyx v w~{w{ w }vvywx v~v |yy wyv zv yv {} zv xwv x w{ v ww y{v:w} {} v hEDi }vyv}T v v{ vw{w yv }v{} w~{w{ zv v ~ y{v v|vv{ w v {v~y {} yw{~ v |wzwv xy{{{~: {yy |{ hEDixw{w{v}T ~v v}w{ {w{ v vxw{y w v wvw }vvywx v v wvy w~ v}w{y yv vxwxwv w v zvwy}vT }v{ y{ vxywv{ zv v:

HC and XrYaniZation[s \usiness ]erWormance ^\]_8

hEEDi w{y}v}T xwv x w{ v{{~vxywv{ {} vw{w ~w|: ww{v {} }v vw hEEi w{}T v v w ~ xvw{v {~vv{ v w~{w{ {

xwv v {v w v{~ wvv: w{ {} v{ hEEixw{v} w {v~v vv}z ywwx v|vv{ u {} vxywvv {wv:} {} wv}v hEEJi w|v}T {~vv{ xv vvxvv} w v{{v xvw{v: {~ {} {~ hEEi {}v}T }vy {} {}vy v u: {}vw {} w{ hEEKi }v}v}Tv{~ u |wy} }v : { v: y: hEDEi {}v}T { xv}wz xv vv { v {}} vxy xy v x{~ w}vy: hEDEi w{y}v}T v xvw{v w v ~{{ {v{vw{ y xy {} wv xy: w{v xy ~{{y{v{v xvw{v: vy {} yv hEDDi w{}T vv{

v w~{w{ zv yv: {yww hEDDi vvyv}T vv ~{{ vyw{ v|vv{ yv {} zv yv w wx{v:vww} v: y: hEDDi w{y}v}T vv xwv vyw{x v|vv{v {} u: v: y: hEDDi {}v}T vv{ ~{{{} xwv vyw{x | xvw{v vv} v{ w{v hi: y {} hEDDi w|v}T {~vv{ ~{{ xwv x w{ w~{w{y xvw{v: {~ {} {hEDDi ~~vv}T {{{~ { xy |yy {vv vvxvw{v: { {} vv hEDDi wvv}T v ~{v} v

{{ww{ xvw{v w~ {w }vy y {} wvxw{y vyw{y xy: y v: y: hEDDi vvyv}T {~vv{xv xwvy wvyv} | vxywvv z{w|yv}~v {~ {}w~{w{y xy: { hEDi w{}T v { wv w{{ww{ {} z{w|yv}~v { w~{w{y {} y w w vxvw{v w vv w~{w{: w} {} {w hEDi {}v}T {} yv{ {~vv{ xw{v v xwv x w{ u: }


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hEDi xwv} xwvv{ { v wxv w {~vv{ w{vw {vv w ywy ~wv{v{ {w{{~ w{ vv yvvyT vvv{vvw{w {} v{v: w}w hEDi v}T {v~{~ xy{{{~ |w}v w~{w{y v~ xy{{{~ vv{y w v{{~ w~{w{ v v yv{ {} zyy {vv}v} w wvvvy vvvv w{ {} xw~ ~wy: wwv{ hEDi w{y}v}T w ~vv}w{ xwvv{ vv} {vv} xw} {}v{{~ w ~}v |w v{v {} v v{v} { v v |wzwv: v: y: hEDJi {}v}T xwv {} }v vv w{w}{{ uvy {{~ ~{w{ u:

HC Indicators8

{y {w| vv {w ~vvv{ w{~ wy vvv {}xw{v v~}{~ {}w {} w| w vv {} vyv :

w{ {} vv{zw hEEKi v}T xywvv xyv {} xvw{v}vxv{} w{ {{~ {} }vvywxv{ |vyy w w{ yvvy: vxw hEEKi v{wv}T vw{ xy{{{~ v ~~v yyv{~v |yy v v} wx{v { v v v~}yv wwx{ v: wy{ {} uw{ hEE i }v} v }v w Tv{{~ x yy w xvwxyv z{w|yv}~v xvwxyv xxw{wx{~ |wz wv yv}vx xv: uv hEDEi v}T vv vv v w }vvywx T }v wxv{w{ ww{ yv {}xwyy w{v v {} vvv{v {} {{~ {} }vvywxv{: {} hEDEi }v}v}T xwv vyw{x v|vv{ xv

vxvyy {{~ {} v|} {} w~{w{y xvw{v: zv{{ v:y: hEDEi w{}T {{~ {} zyy v w{~v xv}w w vvv{vwv {} wv z{w|yv}~v {} v}w{:y| hEDi vvyv}T vv ~{{ x w {~ {{~ }vvywxv{ {v{v {}vv{w{ xwy w{ v vvv{v w : v: y: hEDJi divided ;Cinto three elements: learning and edu0ation= e"9erien0e and e"9ertise and innovation and

0reation.

HC ChallenYes8

)he main 0hallenge o ;C is related to: Fhat are the ;C indi0ators ;o> to a0?uire=manage= develo9= and retain ;C GA! He9ort 5+((,6 9ronoun0ed: 2A1A attra0ts and retains

0riti0al 9ersonnel 7y using tools su0h as re0ruiting and retention 7onuses. ;enson 5+((&6

0on0luded: )here is signii0ant alteration in the 9ool o availa7le talent related to 7oth measura7le

demogra9hi0s and a00om9anying >orer attitudes and 9reeren0es. Gil7ride et. al. 5+(#(6 said:

Foror0e 9lanning identiies ;C re?uired to meet organiDational goals. 2andy and Maha9atra

5+(#(6 ound: )he uture su00ess is de9endent 9rimarily on the a7ility to attra0t= retain and

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9rodu0tively manage the shrining 9ool o talented and motivated 9eo9le. A7erdeen Grou9

5+(#(6 re9orts ound: Best-in-Class 0om9anies are a7le to 7alan0e the need to 0ontrol ;C servi0e

0osts >ith the need to im9rove and redu0e the administrative 7urden 9la0ed on ;C 9ersonnel.

a0o 5+(#+6 stated: Business leaders >orld>ide are a>are that having the 7est talent on 7oard

9rovides them >ith a 9ri0eless 0om9etitive advantage. CGMA He9ort 5+(#+6 0onirmed: irms

around the >orld are inding it hard to manage their talent 7ase in the most ee0tive manner. )his

is 9reventing organiDations rom undertaing im9ortant 9roIe0ts or initiatives= and rom

innovating and meeting 9erorman0e and gro>th targets.

Another 0hallenge is relate to: ;o> to measure and evaluate ;C !EC 5+((#6 0on0luded:

;C measures need to loo at a0tual sills= as >ell as= in9uts lie time s9ent in edu0ation. Bassi

and M0Murrer 5+((*6 said: )he measurement systems that most organiDations use to evaluate and

im9rove the ee0tiveness o ;C and its im9a0t on their 7usiness out0omes are grossly

inade?uate. Be00a 5+(('6 stated: Most organiDations la0 not only a 0onsistent and holisti0 vie>

o the >or or0e= 7ut also the ne0essary analyti0s to 9erorm >oror0e o9timiDation. Fang

5+(#(6 suggested: Perorman0e measurement in universities has 7een o0used on out9ut andout0ome measurement. ;o>ever= out0ome and out9ut measures ail to 0at0h the >hole 9ro0ess o

a0ademi0 a0tivities. n9ut and 9ro0ess measures should 7e in0luded in the 9erorman0e

measurement in addition to out9ut and out0ome measures. Most 0urrent 9erorman0e indi0ators

are ?uantitative. )hey are una7le to measure some as9e0ts su0h as 0ustomer satisa0tion and

em9loyee satisa0tion. u0as and Messmore 5+(#(6 stated: ;C management re9ort is a tool or

analyDing 9erorman0e indi0ators. )hereore= the use o ?ualitative indi0ators is 9ro9osed.

Bloom7erg Business>ee Hesear0h 1ervi0es 5+(##6 0on0luded: n the ne"t t>o years ;C

management >ill 7e a maIor o0us or integration= as 0om9anies in0reasingly need to evaluate=

develo9= 9romote and 0om9ensate talent on a glo7al 7asis. Aryanindita and Budi 5+(##6 sho>ed:

)he C 0om9onent 0an 7e used as a guide in assessing the 9erorman0e o the university. He9ort

to Congressional He?uesters 5+(#+6 mentioned: ;igh-9erorming organiDations identiy their

0urrent and uture ;C needs= and then 0reate strategies or identiying and illing ga9s.

Stud! Purpose and +b,ecties:

)his study investigates the ee0t o ;C indi0ators on the MEUing ?uestion: s there a dire0t im9a0t o ;C elements on MEUithin ;C 0onte"t 7y identiying and deining the main attri7utes o

?uality and 9rodu0tivity o ;C= i.e. to 9oint out 0riti0al a0tors o ;C and ind suita7le >ays or

measurement and management in that 0onte"t.

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Stud! Importance and Scope:

)his study 9resents the ne0essary 0om9onents o ;C deinitions. t 9artially o0uses on

managerial norms= and 9artially on so0ial norms. A 7etter understanding o the ee0t o ;C

elements on the MEUs 0on0lusions that 0an 7e 7enei0ial not only or MEU 7ut also to

other universities= institutions and 9oli0y maers. )he 0ontent also may 7e o an interest toa0ademi0 studies related to the re9orting and de0ision maing 0on0erning ;C. )his study might

7e 0onsidered as initiative that 9resents the ee0t o ;C on ordanian universities< BP. this

study is 9ut to use in the near uture= it 0ould 9resent an im9ortant 0ornerstone that a0ilitates

0ross-dis0i9linary dialogue a7out ;C indi0ators in ordanian universities. )his resear0h is also an

im9ortant one= in terms o the analysis o the situation o ;C in ordanian organiDations= as >ell

as in determining some o the relevant ;C indi0ators used 7y those organiDations.

Problem Statement:

v{w{v} wv v xwyv w }v{{~ {} }v{{~ {}w v{~ {} vy{~ {} vv w{ u {w vyv} ww{v w~{w{ w {} vv w v |wy}|}v xwyv:A00ordingly= the 9ur9ose o this resear0h is to identiy the main indi0ators >hi0h 0onstitute ;C=

and to investigate the ee0t o ;C elements on MEUers to the

ollo>ing ?uestions:

ain uestion:

#. s there a dire0t im9a0t o the ;C on MEUs:

#.# . s there a dire0t im9a0t o learning and edu0ation varia7le on MEU


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H

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^ S` E

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)he ;C hy9othesis 0an 7e urther divided into three hy9otheses a00ording to ;C varia7les

as ollo>s:

;(.#: E varia7le does not have a dire0t im9a0t on MEU


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]opulationb ample and Unit oW nalysis8v }}yv {vhi w}{{ xv {v {~v} xv w{ {v JEEE: v v w v } vv |vv w JEDK }v{ hv {}vywi { v L v v{v xwxyw{ | ~vv} w vxywv v wxw {v~{~ { {vv} w xy{~: )he survey unit o analysis >as0om9osed o all Master and Ba0helor students dra>n rom the MEU.

he uestionnaire8{v w v { wwy { y{~ vvxwv v }vvywxv{ w vv} {v{: {y v w vvw w{ |vv }vvywxv} }vxv{}{~ w{ xw vvv: vvyx w vxv v vw{{v | }v~{v} {} }vvywxv} { w{| xwvv {} vv w}vy: v{ v vw{{v | y}v}w~ vxv {vv| {} x{vy w }~v:

uestionnaire (ariables: nde9endent 3aria7les 5;C6: 5items # to +# in the

?uestionnaire6: )hrough literature revie>= the resear0her has identiied three im9ortant

inde9endent varia7les that 0ontri7ute to MEU8 BP: learning and edu0ationL e"9erien0e and

e"9ertiseL and innovation and 0reation. Ea0h >as tested 7y , ?uestions. e9endent varia7le 5BP6:

5items ++ to %# in the ?uestionnaire6: e9endent varia7le o the study is related to MEU8 BP. BP

>as measured through #( indi0ators as sho>n in the analysis. All varia7les >ere measured 7y

ive-9oint iert-ty9e s0ale to ta9 into the individual8s 9er0e9tions= ranging rom value #

5strongly disagree6 to value 5strongly agree6 used throughout the ?uestionnaire.

Data $ollection and Anal!sis:

uestionnaires >ere delivered to #+( out o a7out %(#, students. )he resear0her gathered

only ##+ ?uestionnaires. Another * res9ondents ailed to 0om9lete the ?uestionnaire statements0orre0tly. )hereore= the a0tual num7er o ?uestionnaires analyDed >as only #(* 5*+ Master and

$$ Ba0helor students6 re9resenting %.N o the total unit o analysis. !n0e the 0om9leted

?uestionnaires >ere re0eived 7a0= the resear0hers 0he0ed them or 0om9letion. )he res9onses

>ere 0oded against 1P11 +(.

Normal Distribution 0)olmogoro-Smirno 5 6est2: )a7le 5#6 sho>s that all the

inde9endent and de9endent varia7les are normally distri7uted 7e0ause signii0an0e level >as

more than 9er0ent 5Bollen et. al. +((6.

6able 012: Normalit! 6est: +ne-Sample )olmogoro-Smirno 052 6est

#eliabilit! 6est:yv hi w| w{ yx 0oei0ients |vvv~vv} vxyv vv w{ yx vy |vv v|vv{ E:KEE

#(

(ariables 0)-S25 Sig.E (.'$* (.$,+

EE (.&,$ (.+&&

C (.'%% (.$

;C (.,%# (.*'

BP (.*#$ (.'$*


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{} E:J: A00ording to Bontis 5+((#6 and Bollen et. al. 5+((6 w{Al9ha a7ove(.*( is a00e9ted.

6able 042: $ronbach7s Alpha for (ariables:

(alidit!:)>o methods >ere used to 0onirm 0ontent validity: irst= multi9le sour0es o

data >ere used to develo9 and reine the model and measures. )hen= a0tor analysis 5Pearson8s

Prin0i9al Com9onent Analysis6 >as 0arried out or all items in0luded in the ?uestionnaire. )a7le

5%6 sho>s that all de9endent and inde9endent varia7le items >ere valid= sin0e their a0tor loading

values >ere more than (.$. )his result mat0hes >ith 9revious studies= su0hL as Bontis 5+((#6=

Bollen et. al. 5+((6 and Bin smail 5+((6.

6able 082: "actors %oading for $ (ariables

Extraction Method: Principal Component Analysis

Data Anal!sis and #esults

Stud! (ariables Anal!sis:

uman $apital (ariables: )a7le 5$6 sho>s that the average means o res9ondents8

9er0e9tion a7out the im9lementation o ;C varia7les >ere ranging rom +.', to %.#%= >ith

standard deviation that ranges rom 5(.*%$ to (.**+6. 1u0h results indi0ate that there is a varied

agreement on the im9lementation o ;C varia7les. )he overall result indi0ates that there is no

signii0ant im9lementation o the ;C varia7les among MEU= >here the total average mean is

%.(( >ith standard deviation (.('and 5tO(.( #.*$6.

6able902: ean; Standard Deiation and +ne-Sample 6-6est #esults for $ (ariables.

)a7les 5=*=,6 sho>ed that the average means o res9ondents8 9er0e9tion a7out the

im9lementation o E varia7le >ere ranging rom +.,& to %.%= >ith standard deviation that

ranges rom 5(.&,% to #.+#&6. Fhile or EE varia7le >ere ranging rom +.*, to %.+= >ith

##

(ariables Alpha

E (.,+$

EE (.,((

C (.,'$

;C (.'%&

BP (.'%

$ (ariables "actor 1 'traction

E (.,,& (.*(,

EE (.'%% (.*&$

C (.*&, (.$'

;C (.&'% (.&**

BP (.*&, (.$'

$ (ariables eanStd.

deiation

6

alue

6

tabulatedE %.#% (.**+ +.(%+ #.*$

EE %.(# (.*$, (.#&% #.*$

C +.', (.*%$ -+.#(% #.*$

;C %.(( (.(' (.( #.*$


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standard deviation that ranges rom 5(.&$% to #.+%+6. inally= or C varia7le >ere ranging rom

+.,& to %.($= >ith standard deviation that ranges rom 5(.'' to #.(&6. 1u0h results sho>ed that

there is a varied agreement on the im9lementation o E= EE and C varia7les items. )he

results also indi0ated that there is a signii0ant im9lementation o the E varia7le= >here the

total average mean is %.#% and 5tO+.(%+ Q #.*$6= >hile there is no signii0ant im9lementation o

the EE varia7le= >here the total average mean %.(# and 5tO (.#&% #.*$6= and C varia7le=

>here the total average mean +.', and 5tO-+.#(% #.*$6.

6able 02: ean; Standard Deiation and +ne-Sample 6-6est #esults for %& (ariable Items.

6able 02: ean; Standard Deiation and +ne-Sample 6-6est #esults for 3P Indicators

#+

No. Items ean Std. Deiation 6 alue 6 tabulated

# Em9loyee8s 0om9eten0e %.(' #.(, (.,% #.*$

+ )eam >or %.% #.+#& +.&$' #.*$

% Continuous training +.,& (.&,% -+.#&* #.*$

$ Continuous learning +.&+ (.&&+ -(.,'% #.*$

Edu0ation average %.+# #.(%& +.(* #.*$

* 4no>ledge sills develo9ment +.&+ #.(** -(.,+& #.*$

, Maret share im9rovement %.*$ #.#'# .&$ #.*$ean total %& 8.18 ?.est 0ost/transa0tion +.*, #.+%+ -+.,& #.*$

ean total & 8.?1 ?. 9rograms laun0hed %.($ #.(& (.%*, #.*$

#& 4no>ledge sharing +.'$ (.'&* -#.'$% #.*$

+( 1atisa0tion >ith innovation. +.'$ (.&&, -#.*, #.*$

+# Motivation 0ommitment +.' (.&,$ -#.&* #.*$

ean 6otal I&$ 4.>= ?.


13/25

#elationships beteen the Stud! (ariables:

Beore testing the hy9otheses= Pearson 0orrelation 5r6 >as 0arried out to test the 0orrelation

among the res9onses o ;C varia7les= then 7et>een them and BP indi0ators. )he ta7le 5&6 sho>s

that the ;C varia7les signii0antly and strongly related to MEU< BP.

Insert 6able 0@2: Pearson7s $orrelation 0r2 Among Independent (ariables; and *ith Dependent (ariable

%& & I&$ $ 3P

%&

& (.#+RR

I&$ (.%+'RR (.$+(RR

$ (.,'&RR (.'+%RR (.,%,RR

3P (.$(RR (.++RR (.%+'RR (.$RR

B$orrelation is significant at ?.?1 leels 04-tailed2

Pearson 0orrelation matri" ta7le 5&6 sho>s that the relationshi9s 7et>een the ;C varia7les:

E= EE and C >ith MEUhere r e?uals (.$(= (.++ and (.%+'res9e0tively. or the ;C varia7le r e?uals (.$ indi0ates a very strong relationshi9 7et>een the

;C and MEU


14/25

Dependent Variable: Business Performance

Independence of errors: ur7in Fatson test is 0ondu0ted= >here 5dO#.&,,6= >hi0h

a99ro"imately e?uals t>o. )his indi0ates that the residuals are not 0orrelated >ith ea0h otherL

thereore= the inde9enden0e o errors is not violated.

ultiple #egressions:v v yv E:JF vvwv v w}vy v~}v} v{~

yv w v v} w yxyv v~vw{ | v }:

6able 0112: #esults of ultiple #egression Anal!sis: #egressing $ (ariables against 3P

ain !pothesis:

;(: ;C elements 5varia7les6 do not have a dire0t im9a0t on MEUs the results o the multi9le regressions analysis that regress the threevaria7les o ;C together e"9lained %+.* 9er0ent o the varian0e= >here 5H+ O(.%+*= O#*.$$=

1ig. O(.(((6. )hereore= the null hy9othesis is reIe0ted and the alternative hy9othesis is a00e9ted=

>hi0h states that the ;C varia7les ae0t MEUs the signii0ant ee0t o ea0h varia7le >ithin the ;C. t sho>s that the

EE varia7le has the highest ee0t on MEUhere 5BetaO(.%%= sig.O(.(((6= ollo>ed 7y

the E varia7le= >here 5BetaO(.+#(= sig.O(.(#,6= inally= the C varia7le does not have

signii0ant ee0t= >here 5BetaO(.(&= sig.O(.+,(6.6able 0142: Cn-standardized and Standardized $oefficients of ultiple #egression odel for $ (ariables

#$

$ (ariablesulti-$ollinearit! Statistics

6olerance (I"

E (.,++ #.%'

EE (.*** #.(#

C (.'(* #.+$#

4 -

$ (ariables

Cn-standardized

$oefficients

Standardized

$oefficients

B 1td. Error Beta t-value 9

5Constant6 #.%(* (.+&$ $.$$' (.(((

E (.+#( (.(', (.+%# +.$+( (.(#,R

EE (.%% (.(&+ (.%*+ %.*%# (.(((R

C (.(& (.('* (.#(( #.#(& (.+,(


15/25

*Calculate is less than 0.05

)he relationshi9 7et>een the de9endent and inde9endent varia7les derived 7y this model

0an thus 7e e"9ressed as:

Human capital = 1.0! " 0.#10 $%&'( " 0.5 $'&'( " 0.0)5 $&C(

Sub-h!pothesis 1:

;(.#: E varia7le does not have a dire0t im9a0t on MEUs that there is a 9ositive dire0t and signii0ant ee0t o the E varia7le on

the MEUhere 5BetaO(.+%#= sig.O(.(#,6. 1in0e 5tO+.$+(=p hi0h indi0ates that the E varia7le ae0ts

MEUhi0h indi0ates that the EE varia7le ae0ts

MEUhi0h indi0ates that the C varia7le does not signii0antly ae0t MEUise regressions model 5A2!3A6 sho>s the im9ortan0e o

the EE varia7le= >here 5R2=0.273, F=39.040, Sig.=0.0006. )he se0ond ste9>ise regression

model sho>s the im9ortan0e o the EE varia7le 9lus E varia7le= >here 5R2=0.318,

F=23.998, Sig.=0.0006. )hereore= it is 0on0luded that the se0ond model in0reases H+>ith (.($=

this means that the EE varia7le alone e"9lains +,.%N o the varian0e in the MEU


16/25

)a7le 5#$6 sho>s the relation 7et>een the ;C varia7les and MEUise

regression model sho>s that there is a 9ositive dire0t relation 7et>een the EE varia7le and

MEUhere 7eta e?uals (.++. )he se0ond ste9>ise regression model sho>s that there is a

9ositive dire0t relation 7et>een the EE varia7le 9lus E varia7le >ith MEUhere 7eta

e?uals (.%&* and (.+$,= res9e0tively. 1u0h results indi0ate that the EE varia7le the most

im9ortant varia7le= ollo>ed 7y the E varia7le= >hile the C varia7le has no signii0ant

im9a0t the MEUed that there is a varied

agreement on the im9lementation o E= EE and C varia7les items. )he results indi0ated

that there is a signii0ant im9lementation o the E varia7le= >hile there is no signii0ant

im9lementation o EE and C varia7les. )he results seem to suggest that the res9ondents

either they are not a>are a7out the role o ;C varia7les in ordanian Universities8 BP= or they do

not 7elieve that ;C is im9ortant or B9= or they 7elieve that the MEUhile they do not 7elieve that the EE and C is im9lemented in MEU. As

0om9ared >ith 9revious studies= the 0urrent study results are not su99orted 7y 1oian et. al.5+(($6 study >hi0h rated 5%.&$6= Bin smail 5+((6 study rated 5%.%*6= 1alleh and 1alamat 5+((,6

study rated 5%.,#6= Miller 5#&&&6 study rated 5%.*%6= Moslehi et. al. 5+((*6 study rated 5%.#6=

Berglud et. al. 5+((+6 study rated 5%.#6= 1hara7ati et. al. 5+(#(6 study rated 5%.$%6. n addition=

the result is not su99orted also 7y im 5+((+6= 4uo 5+((%6= Bollen et. al. 5+((6= Bontis et. al

5+(((6= irer and 1tain7an 5+((%6 and )omer 5+((6.

#*

odel 1 odel 4

$ (ariables Cn-standardized

$oefficients

3

beta Cn-standardized

$oefficients

3

beta

Constant #.,', #.$$(

EE (.$' (.++ (.%*, (.%&*

E - (.++$ (.+$,

C -


17/25

%earning and ducation (ariable:)he average mean o res9ondents< 9er0e9tion a7out

the im9lementation o E >as %.#%. )he results indi0ated that there is a signii0ant

im9lementation o the E varia7le. t seems that the res9ondents are a>are o the role o the

learning and edu0ation in MEUithin edu0ation industry average= they 0oo9erate >hen they >or in team

tass= and they try to im9rove the maret share >hen they are 9erorming their Io7s. ;o>ever=

they 7elieve that: )hey do not have enough 0ontinuous learning= training= no>ledge and sills

develo9ment >hi0h negatively im9a0ted em9loyeehi0h rated 5%.'6 ordanian Pharma0euti0al industry

has rated higher mean 0om9ared >ith the 0urrent study mean.

'perience and 'pertise (ariable:)he average mean o res9ondents< 9er0e9tion a7out

the im9lementation o EE >as %.(#. )he results sho>ed that there is no signii0ant

im9lementation o the EE varia7le. t seems that the res9ondents are either una>are o the role

o e"9erien0e and e"9ertise in ordanian Universities8 BP= or they strongly 7elieve that EEvaria7le is not im9lemented >ith MEU. ;o>ever= eviden0e seems to suggest that the em9loyees

are not in agreement on the im9lementation o the EE varia7le items: Hes9ondents 7elieve that:

Em9loyees are e"9erts and ei0ient and trying to 9erorm their 7est. )hey try to >or hard to

mae their organiDations dierent. ;o>ever= the em9loyees8 turnover is high= stas are not

9roessional and the MEU does have lo>est 0ost 9er transa0tion. )his may 7e due to the la0 o

management su99ort and to the >eanesses o em9loyees8 loyalty. )he a7ove result is su99orted

7y Bin smail 5+((6 study regarding the em9loyees8 e"9ertise >hen they 9erorm their Io7s. Also

su99orted 7y 1hara7ati et. al. 5+(#(6 regarding em9loyees turn over= the ordanian

9harma0euti0al industry rated 5%.$6= mu0h higher that higher edu0ation industry.

Innoation and $reation (ariable:)he average mean o res9ondents< 9er0e9tion a7out

the im9lementation o C >as +.',. )he results indi0ated that there is no signii0ant

im9lementation o the C varia7le. t a99ears that the res9ondents are either una>are o the role

o the C in ordanian Universities8 BP= or they strongly 7elieve that the MEU does not

im9lement C varia7le. Eviden0e might suggest that em9loyees have some agreement on the

la0 o C varia7le im9lementation: Hes9ondents 7elieve that the em9loyees are not 0reative

and 7right= do not voi0e their o9inion. )hey are not en0ouraged to 7ring ne> ideas or 0ome u9

>ith ne> ideasL at the same time they have lo> motivation and 0ommitment to share ne> ideas.

Em9loyees also do not laun0h high num7er o ne> 9rograms 0om9ared to others= and they are not

satisied >ith innovation 9oli0ies and 9rograms. )his may 7e due to the la0 o managementsu99ort= and the 0ulture that generally does not su99ort innovation and 0reation. )he a7ove result

is su99orted 7y Bin smail 5+((6 study regarding the em9loyees idea sharing and 9ra0ti0ing

0reativity= 7ut it is 0ontradi0ted regarding the em9loyees8 innovation and 0reation >hen they

9erorm their Io7s. )he 0urrent results are su99orted 7y 1hara7ati et. al. 5+(#(6 study in some

9oints and 0ontradi0ting in other 9oints= 7ut generally s9eaing= ordanian Pharma0euti0al

ndustry rated higher C 5%.+,6.

#,


18/25

3usiness Performance Indicators: )he average mean o res9ondents< 9er0e9tion a7out the

im9lementation o BP indi0ators >ere %.+. Hesults sho>ed that there is an agreement among

res9ondents a7out the role o BP. )he result indi0ates that there is a signii0ant role o BP

indi0ators. Eviden0e seems to suggest an im9rovement in MEUard 9erorman0e im9rovement= and the res9ondents are a>are o

the role o BP indi0ators. )he 0urrent study results are in line >ith 9revious studies su0h as:

1oian et. al. 5+(($6 study rated 5%.+(6= Bin smail 5+((6 study rated 5%.(#6= and Moslehi et. al.

5+((*6 study rated 5+.$6= 1hara7ati et. al. 5+(#(6 study rated 5%.'6.

#elationships beteen the Stud! (ariables: Pearson 0orrelation matri" sho>ed that the

relationshi9s 7et>een the ;C varia7les: E= EE and C >ith MEUealth and thereore it should 7e taen into

serious 0onsideration >hen ormulating the ordanian Universities8 strategy. )his strategy

ormulation 9ro0ess 0an 7e enhan0ed 7y ully integrating ;C indi0ators into management

9ra0ti0es. ordanian Universities should 0oordinate dierent 9ers9e0tives o ;C to im9rove

ordanian Universities8 BP and should assign s0ales or ea0h o the three 0om9onents o ;C.

inally= the data suggest that a similar set o ;C indi0ators 0ould 7e develo9ed or other

#'


19/25

organiDations and industries >hether government= 9u7li0 or 9rivate= 9roita7le or non-9roita7le

organiDations.

Social Implications:

)he results and indi0ators o the 0urrent study may hel9 to deine= measure= manage and

develo9 7oth so0ial 0a9ital and individual 0a9ital 5Brain9o>er6. 1o0ial 0a9ital is the 0a9a0ity o

the so0iety to 0reate and develo9 entre9reneurs= inventors= innovators and leaders. ndividual

Ca9ital or Brain9o>er 9rograms are a7out 0hanging the individualhi0h in0reases the individual8s ei0ien0y and 9rodu0tivity

to 7e one o the 0ore 0a9a7ilities or 0ore 0om9eten0es or organiDations and so0iety. )his 0an 7e

done 7y using the Brain9o>er test and %*( T test= >hi0h >ill hel9 in sele0tion= evaluation=

develo9ment and training.

'pected (alue:

)he 0urrent resear0h may 7e 0onsidered as initiative study that highlights the ee0t o ;C

on ordanian Universities8 BP. Moreover= it 0ould 7e an initiative study that divided ;C into three

varia7les and o0using on the role o ea0h varia7le on Universities8 BP. )his study e"tends 9rior

resear0h8s vie>9oint a7out the linear relationshi9 7et>een ;C and organiDations8 BP >ith

em9iri0al eviden0e. )he results 0an 9rovide the reeren0e or urther resear0h a7out the

relationshi9 7et>een ;C and BP.

#&


20/25

TeWerences8

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Ante0edents and Conse?uents.ournal of ntellectual Capital3ol. % 2o. %= +((+= 99. ++%-+$,.

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