Structural capital and its effect on organizational performance: A case study of Telekom Malaysia Berhad (TM) headquarters

Structural capital is “organizational-level knowledge” present in the firm as a result of a learning meta-process called institutionalization. This knowledge basically resides in organizational routines, processes, strategy and culture which codify and preserve memories and knowledge. The purpose of this paper is to determine the relationship and influence of the structural capital on organizational performance. This study was conducted at Telekom Malaysia Berhad (TM) Headquarters and aims to address the significance element in intellectual capital focusing only on structural capital towards organizational performance. A mixed method research approach was used with a pragmatic knowledge claim with strategies of inquiry that involve sequential quantitative and qualitative data collection through questionnaire survey and interviews. Overall results revealed that structural capital do matters and have a significant influence on organizational performance of TM. The findings obtained in this study particularly useful for both employers and employees in understanding the importance of structural capital towards performance of TM. It is suggested that TM should implement system and program framework to be part of TM's policy as a contribution to TM's organizational success. The study also implies that the importance of structural capital should be emphasized not only to TM but also to other organizations for future research.