Intellectual Capital and Organizational Performance of Tech Industry in Kenya: Case of Andela Kenya Limited

Abstract

The purpose of the study was to examine the influence of intellectual capital on the organizational performance of technology firms in Kenya, focusing on Andela Kenya Limited. While Andela has played a key role in nurturing software engineering talent in Africa, it faces challenges in optimizing the human, structural, and relational capital to sustain its competitive performance. These challenges include retaining talent, codifying knowledge, and fostering strategic relationships. Using the Resource-Based View (RBV) theory as the theoretical framework the study sought to analyze the relationship between intellectual capital dimensions and organizational performance at Andela Kenya. The study targeted all employees at Andela Kenya Limited, recognizing that staff at all levels contribute to the development and utilization of intellectual capital. A descriptive correlational research design was employed. Data was collected through structured questionnaires and analyzed using the Statistical Package for the Social Sciences (SPSS). The Pearson Product-Moment Correlation Coefficient assessed the strength and direction of relationships among variables. Correlation analysis was used to evaluate the predictive power and statistical significance of intellectual capital components. The findings revealed that human capital (r = 0.632, p < 0.001) and organizational capital (r = 0.223, p = 0.016) each had a statistically significant positive relationship with organizational performance. Relational capital showed a weak, positive but statistically insignificant relationship (r = 0.135, p = 0.150). These results underscored the critical role of human and organizational capital, which are elements of intellectual capital in enhancing organizational performance. The study contributed to the RBV literature and offers practical insights for improving performance in knowledge-intensive firms through strategic investment in intellectual capital.