Simple and Multiple Relationship between Intellectual Capital and Organizational Innovation among Faculty Members of Isfahan University of Medical Sciences

Intellectual capital is a key factor in innovating, creating and maintaining competitive advantage in a knowledge-based economy. Considering intellectual capital in the academic context is necessary to create innovation and gain competitive advantage. This study aimed to investigate the relationship between intellectual capital and organizational innovation among university faculty members. In this descriptive correlational study, 248 faculty members of Isfahan University 0f Medical Sciences were selected through stratified random sampling in 2014. The data was collected through Bontis`s Intellectual Capital questionnaire and Ismail`s Organizational Innovation questionnaire. The collected data were analyzed using descriptive statistics, correlation test, and stepwise regression analysis. The results showed a significant correlation between intellectual capital and organizational innovation (p <.05, r =.457). Furthermore, it was found that intellectual capital was a good predictor of organizational innovation (r2 =.209).The results of regression analysis showed that human capital index accounted for 20.5% of the variance in organizational innovation in step 1. Human capital and relationship explained 23.1 % of variance in organizational innovation in step 2. Staff viewpoints based on gender, educational level, work experience, academic rank, and the faculty they worked in did not reach statistical significance. Regarding the significant positive correlation between intellectual capital and organizational innovation, it seems necessary to pay attention to invisible intellectual capital in universities. Thus, university administration should benefit more from human, structural and relational capitals to create innovation.