Intellectual capital and business performance in the Portuguese banking industry

Previous empirical studies confirm that intellectual capital has a significant and substantive impact on performance. The purpose of this research is to examine the inter-relationships and interactions among intellectual capital components and business performance in the Portuguese banking industry. The concept of relational capital was extended to include 'stakeholder orientation' items. Model development and hypothesis testing was conducted using PLS on a sample of 253 respondents from 53 organisations. Results show a confirmation of previous studies as it relates to hypothesis testing but a difference in psychometric item evaluation given the unique geographical and sectoral context. Recommendations are then made for researchers and practitioners.