Intellectual Capital (IC) is considered the principal provenance for gaining a competitive advantage in the knowledge economy. Many researchers and practitioners have tried to determine the several forms of the IC. They suggest several models measure intellectual capital in the cause to permit the companies to direct their hidden assets. This research aims to compute the IC in Algerian companies using two models to propose a new model compatible with the Algerian companies’ organizational culture. This study tests the magnitude of the utilization of the IC in 14 companies through two models proposed by Sharbati, Jawad and Bontis, (2010), which divide IC into human capital, structural capital and relational capital and the model of Choudhury (2010), which separates IC into four forms: human capital, social capital and organizational capital. This study examines the effect of Intellectual Capital (IC) in Algerian Companies on Business Performance (BP). The data were collected from 307 employees using a questionnaire. These two models allow formalizing a new model using cluster analysis, which is tested in a new study using four companies. This study found in the two models that human capital has a weak relationship with the company’s performance. This signifies that IC should be integrated into the preparation of the company’s strategy. These results relate to the need to increase the managers’ awareness of the significance of intellectual capital and its elements to raise the performance of Algerian companies. The new model proposed shows that there is an intermediate variable and moderate variable that interferes with the link between IC and customer satisfaction instead of the business performance.

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Djilali, B., Sarra, B., & Abdesselem, B. (2016). Proposal of a new model for the Algerian companies to measure the effect of intellectual capital on organizational performance. International Journal of Business and Administrative Studies, 2(5), 129-142.