Abstract

This study aimed at revealing the effect of Intellectual capital on competitive advantage at business organizations of Al-Hassan industrial city in Jordan. The study population consists of managers, heads of HR departments, production operations, financial, marketing and IT departments in 137 different domain business organizations in the Al- Hassan industrial city in the Hashemite Kingdom of Jordan.

A 20% sample was randomly taken from these organizations as the sample is inconsistent. 30 organizations was selected based on complete census as per the following categories, 10 clothes organizations, 10 chemical organizations and 10 food production organizations. 8 questionnaires were distributed in each organization to managers, their deputies and assistants, heads of HR, production operations, financial, marketing, and IT departments.

So, 240 questionnaires were distributed, 187 were retrieved, 3 of them were invalid, 184 questionnaire were analyzed (76%). The results of this study were that the degree of practicing of intellectual capital represented by the human, Structural and relational capital and the competitive were medium. There is no effect for human, Structural and relational capital in achieving competitive advantage. The study recommended to enhance the intellectual capital as it has an essential role to achieve competitive advantage.