The Effect of Knowledge Capital on the Competitive Advantage in Jordanian Islamic Banks

Abstract

The study aimed to identify the effect of knowledge capital with its combined dimensions (human capital, structural capital, relational capital) on competitive advantage with its combined and individual dimensions (quality, flexibility, excellence, and cost) in Jordanian Islamic banks, by following the descriptive analytical approach. The study population consisted of (3) Jordanian Islamic banks and all of these banks were included in the study sample. The study also used a questionnaire to collect primary data from individuals working at the upper, middle, and lower administrative levels in the main departments of Jordanian Islamic banks, where (150) questionnaires were distributed, and (132) valid questionnaires were retrieved for statistical analysis. To analyze the data, descriptive statistics methods were used, and multiple linear regression analysis was used to test the study hypotheses. The study found a statistically significant effect of knowledge capital on competitive advantage in Jordanian Islamic banks, as the significant effect appeared for all (human capital, structural capital, and relational capital). The study recommended the importance of Jordanian Islamic banks defining a strategic vision and objectives that focus on exploiting knowledge capital to achieve competitive advantage, and working to achieve integration between knowledge capital and the company's strategies.