THE EFFECTS OF STRUCTURAL CAPITAL ON ORGANISATIONAL EFFICIENCY

Friday Ogbu Edeh; Yeo Sook Fern; Abid Hussain Nawaz

Friday Ogbu Edeh Department of Business Administration, Alex Ekwueme Federal University, Ndufu-Alike, NIGERIA
Yeo Sook Fern Faculty of Business, Department of Business Administration, Multimedia University, MALAYSIA
Abid Hussain Nawaz Director, High Aims School Systems, Jahan Khan Bhakkar, PAKISTAN

Keywords: Structural Capital, Organisational Efficiency, Process Capital, Customer Capital, Innovation Capital

Abstract

Policymakers and practitioners in telecommunication industry are not fully aware of the positive significance of structural capital to the enhancement of their operational and workers efficiency. The aim of this study therefore is to examine the effects of structural capital on organisational efficiency of ICT companies in the Sub-Saharan Africa using the knowledge-based view as theoretical underpinning. Cross-sectional research design was employed while the simple random sampling was used to select five ICT firms. Accessible population of two hundred and fifty participants was drawn from sample frame of five telecommunication firms. Sample size of one hundred and fifty-two was determined from accessible population. Hypotheses were analysed with multiple linear regression techniques with the aid of IBM SPSS. Study found that structural capital has significant positive effects on the organisational efficiency of ICT companies. The study concludes that structural capital measured in terms of process capital, innovation capital and customer capital enhance the organisational efficiency of ICT companies in Sub-Saharan Africa.