The influence of intellectual capital on non-financial performance of commercial banks in Tanzania

Msafiri Allen


Oct 22, 2022


Dec 19, 2022


Dec 21, 2022


The purpose of this study was to establish the predictive model for non-financial performance measures of commercial banks in Tanzania. This study employed a cross-sectional survey design to examine how an intellectual capital component influences the non-financial performance measures of a firm. The participants for this study came from employees of the top ten best commercial banks in Tanzania. Convenience sampling was used to select the desired participants, and purposive sampling was used to select the four banks. Three fifty nine (359) respondents participated in this study and a linear multiple regression analysis was used to establish the best predictive model. The predictive model developed explained 71 percent of the variance in non-financial performance measures of a firm. The model developed is significant as it provides empirical evidence that links intellectual capital components to non-financial performance measures. Further, it explains that by embracing distinctive non-financial performance measures, a firm may have quality services, satisfied customers, and thus, building a long-term competitive advantage. In general, human, customer, structural, and innovation capital were found to be significant predictors of non-financial performance measures of a firm. This study recommends that future researchers may use a structural equation modeling approach to explore more the understanding of the influence of human, customer, structural and innovation capital on non-financial performance measures of a firm.

Keywords: Intellectual Capital, Human Capital, Customer Capital, Structural Capital, Innovation Capital, and Non- financial performance measures of the firm.

Cite this Article

Msafiri A. (2022). The influence of intellectual capital on non-financial performance of commercial banks in Tanzania. University of Arusha Academic Journal, 29-41.


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