Exploring Multidimensional View of Intellectual Capital and Business Ethics on Organizational Performance by Using Bootstrapping Method: Evidence from Pakistani Pharmaceutical Industry

The objective of this research is to examine the effect of business
ethics (BE) and intellectual capital (IC) on the organizational performance
(OP). In order to run this study, a conceptual model was
designed based on the literature review, and the employees of the
knowledge-based organization in pharmaceutical sector were surveyed
using a closed-ended questionnaire. Modern successful and
thriving organizations are those that create IC and convert it into
applicable methods to improve their activities and performance
within the boundaries of BE. This research is exploratory and quantitative
in nature: 400 responses were directly gathered from the
employees of the pharmaceutical industry through five-scaled questionnaire.
This research examined the direct and indirect effect of
BE and IC on the OP. Structural equation modeling (SEM), descriptive
statistics, correlation, multiple regression techniques were used
to analyze the impact of IC and BE on the performance. Bootstrapping
method is employed in order to test the mediating effect of
variables. Two-step SEM was used to the models to regress the
cause and effect relation. The findings depicted that there is a very
significant effect on BE and IC in the performance of pharmaceutical
organizations. General BE, ethics in finance, ethics in human resource
management, and ethics in sales and marketing have direct
and significant impact on the OP. Human capital, structural capital
and relational capital have significant indirect (mediating) effect on
the performance of the pharmaceutical industry. Finally, it has been
concluded from the results of the research study that IC is the major
contributor of the OP as a mediating variable with defined set of
principles of BE in the pharmaceutical sector of Pakistan.