American Journal of Business Management, Economics and Banking ISSN (E): 2832-8078 Volume 9, | Feb., 2023 P a g e | 44 www.americanjournal.org THE ROLE OF INTELLECTUAL CAPITAL IN ACHIEVING COMPETITIVE ADVANTAGE (AN EXPLORATORY STUDY OF THE OPINIONS OF A SAMPLE OF WORKERS IN THE MAYSAN OIL COMPANY) Husham Mayea Fazaa Almusaedi Iraq / Univversity of Missan College of Administration & Economics jinalmaliky@gmail.com A B S T R A C T K E Y W O R D S The study sought to determine the impact of intellectual capital in achieving competitive advantage (a survey of the opinions of workers in the Maysan Oil Company (a public company), it is known that each company has intellectual capital that contains three basic dimensions (human capital, customer capital, capital Structural) and since the competitive advantage is framed in the company's ability to achieve its goals, this depends on its ability to produce products that meet the requirements of customers, and given the limited studies that dealt with the relationship of correlation and impact on intellectual capital and the achievement of competitive advantage in the company (within the limits of the researcher's knowledge), the researcher sought To contain his current study of these two variables within a comprehensive framework in an attempt to study the relationship of correlation and effect between them In general, the study tries to answer the following questions: 1- Is there a clear perception among the employees of the researched company about the two issues of intellectual capital and competitive advantage? 2-Is there an increase in the awareness of the employees in the company under study of the concept of intellectual capital and competitive advantage? The study reached a number of conclusions, the most important of which are: 1-There is a significant correlation between intellectual capital and competitive advantage in the company under study 2-There is a significant effect between intellectual capital and competitive advantage at the level of the company under study. intellectual capital, Maysan Oil Company, competitive advantage Introduction This study represents an attempt to measure the impact of intellectual capital in achieving competitive advantage (a prospective study of the opinions of workers in the Maysan Oil Company (a public company), as this topic acquires great importance for what intellectual capital represents because it is American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 45 www.americanjournal.org one of the most important functional elements in the company, which translates into goals and plans And the company’s policies in the field of efficiency, in addition to considering it as one of the basic foundations for events and operations.In addition to that, the company seeks a distinguished level of performance that pushes it to search for the best methods and means to enhance its competitiveness to ensure its survival in the competition.And due to the lack of local studies that are concerned with intellectual capital and advantage Competitiveness. In his study, the researcher dealt with a comprehensive framework based on the authors’ proposals in the fields of intellectual capital management and competitive advantage. In order to integrate with the foregoing, a hypothetical scheme was designed to determine the nature of the relationship between the independent variable (Rass Intellectual money), approved (competitive advantage), and a set of main hypotheses were derived, where the data obtained were tested statistically on the General Oil Company in Maysan, and then the hypotheses of the study were tested, and its results, conclusions, and appropriate proposals to address weaknesses and imbalances were determined, and others were left to be addressed with studies Futurism suggested in this area. Research problem: The oil sector in the Maysan Oil Company is witnessing unilateral competition among other competing companies with the possibility of a third operator or more entering the market, which will make the competition intense and will make success in the oil sector for the company that achieves a competitive advantage and works to maintain it by providing the requirements of both human and structural capital. And social, and through the above, we can formulate the problem of the study with the importance of focusing by the company on intellectual capital to achieve the competitive advantage. How can intellectual capital contribute to achieving the competitive advantage of the oil company in Maysan? Research Importance: Intellectual capital is of great importance in creating value for the organization, improving its creative capabilities, improving its reputation, and attracting customers. Many studies have shown that raising productivity comes from the use of knowledge, and that intellectual capital is the main driver for achieving competitive advantage. Research Assumes: The research is based on two main hypotheses: The first main hypothesis: There is a statistically significant relationship between intellectual capital and achieving competitive advantage in the researched company. The second main hypothesis: There is a significant effect of intellectual capital in achieving the competitive advantage in the researched company. Search form: 1-The independent variable: is intellectual capital and is represented by ( Human capital, structural capital, customer capital) 2-The dependent variable: competitive advantage and includes the following dimensions: quality, efficiency, creativity, and responsiveness. American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 46 www.americanjournal.org Data collection methods: Previous references and studies related to the subject were reviewed and we tried to benefit from them in building the questionnaire and drafting its paragraphs. a-The questionnaire was designed in its initial form and consisted of three dimensions. b-The first part: It included personal and occupational data of the study sample (sex, age, qualification Scientific, job title, years of experience). - Part Two: It includes data on intellectual capital and its three basic dimensions as follows 1-Human capital 2-Customer capital Statistical analysis methods: First: After the data was tabulated and entered into the computer, the Statistical Package for Social Sciences (SPSS) program was used, and the following statistical methods were relied upon to analyze the data. 1- Correlation coefficient: the stability that the scale measures what was developed to confirm the structural validity and validity of the internal consistency of its measurement, as the Pearson correlation coefficient was used, as it was used to determine the relationship and correlation between the variables of the study. 2-Frequencies: To find out the frequency of selecting each alternative of the questionnaire questions Second Percentages: To find out the percentage of choosing each of the alternatives to the questionnaire. 1-Arithmetic mean: to obtain an average of the answers of the study sample to the questionnaire questions; That is, calculating the value that members of the study community give to each phrase or group of phrases 2-Standard deviation F: which enables knowing the extent of the absolute dispersion between its arithmetic mean. 3-Choose the average of the expressions for one sample T-test (positive negative – neutral), Test the means of two independent samples F (for independent samples). The first topic: intellectual capital: First: the concept of intellectual capital: The concept of intellectual capital is one of the contemporary administrative concepts, as it represents the most important resource of industrial and service associations alike. (Al-Jalili, 2006: 3) StarVic defined intellectual capital as the possession of knowledge and the application of experience and technical expertise in the organization, customer relations and professional skills. (Al-Janabi, 2010, 104) Intellectual capital is defined as increasing the capacity of the society to adapt through the development of its products and production techniques and the reduction of their costs and innovative new trends through the development of creativity, learning and the growing investment in people in education and training. Intellectual capital is a group of knowledge, information, skills and experiences of economic value that can be applied to achieve growth. and economic development. American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 47 www.americanjournal.org Second: the components of intellectual capital Intellectual capital consists of a number of non-material components: (Al-Mutairi, 2007, 367) 1-Human assets: which are knowledge, skills, creativity, and experience. Human capital consists of a combination of skills, abilities and knowledge, in addition to previous experience, or acquired through work 2-Intellectual assets: They are information, written notes, instructions and publications. Intellectual assets are formed as soon as information, knowledge, ideas and data are transmitted from human assets, to be recorded in writing, and become clearly defined and known, and then the organization deals with these intellectual assets, instead of dealing with individuals and examples Intellectual assets: plans, engineering designs, and computer programs. 3-Intellectual property: It is the total rights that protect the use of ideas and information that have commercial value. Intellectual property gives its owner exclusive rights as a result of the knowledge and information that he created and that others cannot use without permission. Leading organizations in the industry work to own more intellectual property, to achieve an advantage Competitiveness that enables it to face intense competition in the markets, and organizations try to develop a portfolio of intellectual property in it, and market these properties based on prior planning for how to manage and exploit them. 4-Structural assets: These include culture, organizational models, processes, procedures and distribution channels. 5-Relationship capital: It reflects the nature of the relationships that link the organization with its customers, suppliers and competitors, or any other party that helps in developing and transforming the idea into a product or service. (Hassan, 2002, 367) Third: the importance of intellectual capital The intellectual capital of any institution is the value that distinguishes it from similar institutions, and gives it the lead in the event of its superiority over others. The criterion for competition today is knowledge, information and skills, and since we live in the era of technological progress and the era of knowledge. (Talib and Al-Abadi, 2006, 126) 1-Intellectual capital is the future of organizations seeking long-term success, as it represents tangibly the possession of expertise, experience, techniques and individual competencies in the organization. 2-Intellectual capital is the main weapon of the organization in today's world, because intellectual assets represent the strong force that guarantees the survival of the organization. 3-The presence of intellectual capital in the organization is a competitive advantage, as a result of what these capitals provide in useful knowledge and the ability of the organization to invest that knowledge to achieve the competitive advantage. 4-The knowledge presented in the intellectual capital is unique and unavailable and provides intellectual contributions that enable the organization to increase its production compared to its counterparts. 5-Intellectual capital is an essential source of competitive advantage. Organizations compete on the basis of knowledge and advantage. It is responsible for the process of converting a distinguished resource and knowledge into a contribution to information. Thus, intellectual capital has economic value in the market. Fourth: Intellectual capital objectives American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 48 www.americanjournal.org Since intellectual capital represents a group of elements available in the organization that has extensive knowledge that makes it able to bring it to globalization through a group of competitive assets that carry out the process of ethical and strategic development based on innovation and renewal, the researcher believes that the objectives of intellectual capital are represented in that it represents one of the factors Production that supports the competitive position of business organizations and enables them to continue their activities and helps them to acquire knowledge and renew their balance of knowledge, and get rid of stereotypes and traditional concepts prevailing in the work environment. It also provides creative and innovative capabilities that contribute to solving problems and developing performance methods in business organizations. (Al-Saeed, 2008, p. 37) This makes intellectual capital (knowledge) growing importance for its vital and pivotal role in creating sustainable competitive advantages for business organizations. In addition to this, interest in studying the concept of intellectual capital, its elements, and methods of measuring and reporting on it helps the organization's management focus its attention on its development and protection, and supports the goal of the organization Increasing the value of its shares and helping to increase the efficiency of capital markets by providing investors with information that enables them to make better investment decisions, in addition to that failure to understand the value creation process and neglect of intellectual capital may result in losses at the level of the market organization. Intellectual capital may lead to an insufficient allocation of the organization's resources, which results in a negative outcome represented in its inability to estimate its capabilities and future turnover. On the market level, failure in the value creation process may lead to abnormal or wrong behavior of the market. If the organization cannot obtain inappropriate and untruthful information through the market and its official channels, this leads to improper allocation of resources at the national level (Nihal Al-Jundi, 2003, 125). As seen, the expansion of the strategic plans of business organizations has become an inevitable necessity to absorb their intellectual capital. (Kaplan and Norton, 2004, 147) In addition to its physical capital, investment in intellectual capital has also become an effective role in the existence of continuity of business organizations in the practice of their activities, and intellectual capital has become the real capital that can be relied upon in creating added value and achieving competitive advantages for these organizations. The second topic: competitive advantage First: the competitive advantage The concept of competitive advantage emerged as a result of the great competition between institutions and the emergence of globalization (Porter) who was the first to refer to this concept of competitive advantage. The goal of the variable strategy is used within the strategy. Design a template. (Zoubi, 2003, 45) The competitive advantage practically aims at the customer in order for the customer to acquire the good or service. As for the British definition of competitiveness, it states that it is: the ability to produce goods and services with good quality, at the right price, and at the right time, and this means meeting the needs of consumers more efficiently than the other establishment. (William, 2007, 4) believes that the competitive advantage is a characteristic that distinguishes the company from other companies by having resources and facilitating factors, which gives it an internal dynamic force that establishes a different attitude towards the beneficiaries, which is reflected in the goods and services it offers of unique value to its target customers. (Adnan, 12, 2001) American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 49 www.americanjournal.org The competitive advantage is represented by the company’s distinction over the competitive advantage as any advantage achieved by the company that is higher than what competitors offer to customers and has value. (Mohsen, and Al-Najjar, 2004, 52) that competitive advantage aims to build a system that has a unique or distinctive advantage that surpasses competitors through customer value, in an efficient and sustainable manner that can be maintained continuously and presented or presented better than others. (Soliman, 2004, 74) believes that the competitive advantage is achieved when the company is able to carry out its activities at a lower cost or with better efficiency than competitors through the good use of resources, or to use its ingenuity and experience in carrying out its activities. (Mustafa, 2006, 416) Second: the characteristics and requirements of competitive advantage Competitive advantage must be characterized by the characteristics of the most important. (Al-Ghalbi 2009, 309) 1-To be continuous and sustainable in the sense that the institution achieves the first in the long term and not only in the short term. 2-And that the use of these competitive advantages is commensurate with the goals and results that the organization wants to achieve in the short and long term, and the internal resources of the organization on the other hand. 3-Competitive advantages are relative compared to competitors or compared in different periods of time, and this characteristic makes understanding the advantages in an absolute framework difficult to achieve. 4-It must be renewable according to the data of the external environment on the one hand and capabilities, and it must be flexible in the sense that competitive advantages can be easily replaced by others. Third: the factors affecting the competitive advantage Among the influencing factors affecting competitive advantage are the following. (Proby, 2005, 166) 1-Creative capabilities: the organization is forced to make changes in the characteristics and specifications of its products, and this requires a market study to know the current and expected demand, the technological expertise of the organization, creativity. 2-Productive capabilities: It means two important elements: quality, which is the ability of the product to meet its needs and desires, and requires: creativity, customer satisfaction, and productivity is a measure of the organization’s efficiency in using its resources, and it represents the ratio between outputs and inputs, and the organization must raise productivity, because it is a basic criterion To measure the efficiency of the organization compared to its competitors. 3-Marketing capabilities: The marketing function is considered one of the pillars of its competitiveness, which is based on: marketing research, market study, and consumer behavior analysis. The third topic: the Applied side First: Description of the research sample (50 )questionnaires were distributed, which represent the number of the sample among the employees of the company, “the study community.” (47) questionnaires were retrieved, which is equivalent to (94%) from the original community, and with the aim of describing the study sample, the researcher American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 50 www.americanjournal.org proposed to detail it in Table (2), where It is clear from this table that most of the respondents are among the people who are most familiar with the two variables of the study). Table (2) also shows that most of the respondents are diploma holders, as their percentage was (43%), which is the highest percentage among the other percentages, and as table (2) shows the number of years of service, as the category (6-10) obtained The highest percentage (38%), and this is a good indication that most of them have practical and professional experiences, and from the aforementioned information it is clear that this sample may be the appropriate sample to answer the questions of the scale prepared for this study. Table (4) of regression analysis indicates that there is a significant effect of intellectual capital as an independent variable on competitive advantage as a dependent variable. This is according to the calculated (F) value of (15.056), which is greater than its tabular value of (4.042), and is significant at the level of (0.05) with two degrees of freedom (1, 45), and as long as the calculated (T) values are significant for the independent variable, amounting to (2.415), which is greater From its tabular value (1.675), this reflects the significance of the model, and it is clear that the coefficient of determination (R2), which has a value of (0.251), indicates that the ability of the independent variable to explain (25%) of the differences that occurred in the dependent dimension and that (75%) Returns to variables not included in the model. Thus, the second main hypothesis is accepted. Table No. (1) Response rate Distributed retrieved excluded not retrieved valid Retrieval 50 48 1 2 47 %94 Table (2) Distribution of the study sample sex male feminine Repetition The ratio % Repetition The ratio % 38 80.9 9 19.1 age categories 30 and under 31-40 41-50 51 and over Repetition The ratio % Repetition The ratio % Repetition The ratio % Repetition The ratio % 7 14.9 25 53.2 10 21.3 5 10.6 Educational attainment Ph.D Master's Higher Diploma Bachelor's Repetition The ratio % Repetition Repetition % النسبة Repetition The ratio % 2 4.3 3 6 12.6 20 42.6 Technical Diploma Prep Medium Primary Repetition The ratio % Repetition Repetition The ratio % Repetition The ratio % 10 21.3 3 6.4 1 2.1 2 4.3 The number of years of service in the company less than 5 6- :10 6: 11 over 16 Repetition The ratio % Repetition The ratio % Repetition The ratio % Repetition The ratio % 5 10.6 18 38.3 11 23.4 13 27.7 American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 51 www.americanjournal.org 1-Testing the correlations between the variables of the study: Through this research, the first main hypothesis was tested, which states that (there is a significant correlation between intellectual capital and competitive advantage in the researched company). Table (2) was prepared, which indicates the existence of a significant correlation between intellectual capital and competitive advantage, as the total index reached (0.870*), and this proves the validity of the first main hypothesis Table (2) Relationships between intellectual capital and competitive advantage intellectual capital Independent variable dependent variable *0.501 Competitive advantage *: P ≤ 0.05 N =47 2-Testing the effect relationships between the variables of the study The content of this relationship represents a test of the second main hypothesis of the study, which indicates that "there is a significant effect of intellectual capital on the competitive advantage in the researched company. Table (3) Relationship of the influence of intellectual capital on competitive advantage. R2 T F Intellectual capital Independent variable Dependent variable Tabular calculated Tabul ar calculate d β0 β1 0.251 1.675 *2.415 4.042 *15.056 0.584 0.501 Competitive advantage d.f : (1,45) *: P ≤ 0.05 N = 47 Conclusions and recommendations: Conclusions: Through the study that dealt with the research, we reached the following results: 1-Intellectual capital is the main pillar for the success of organizations 2-The real capital that organizations possess is not physical capital, but intellectual capital, which is represented primarily in knowledge that can be converted into added value through successful investment in human energies and competencies. 3-The difference between the nominal value of the organization and its book value is represented in the intellectual capital that it possesses, which is the source of competitive superiority and competitive advantage for it. American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 52 www.americanjournal.org 4-Human capital, represented by the skills and competencies available to individuals, contributes to achieving the competitive advantage of the organization, and this confirms the validity of the first hypothesis. 5-Customer capital contributes to achieving the competitive advantage of the organization. 6-The represented structural capital contributes to achieving the competitive advantage of the organization. 7-There is a correlation between intellectual capital and competitive advantage in the company under study. 8-There is a significant impact relationship between human capital and the competitive advantage in the company under study. Recommendations: Through the general results that have been reached, the student presents some recommendations that can contribute to the development and development of intellectual capital in the company under study in a way that leads to the development and sustainability of the competitive advantage as follows: 1-The need for organizations to realize the importance of realizing what intellectual capital constitutes for the purpose of caring for and developing this resource, and exploiting it to achieve sustainable competitive advantages. 2-Increasing interest in intellectual capital and managing it as it should be managed because it is an important source for achieving competitive advantage. 3-The need to deal with intellectual capital as the most important strategic resource that the company possesses, and to maintain it constantly because it is the effective element in the success of the company, especially in light of the tremendous technological development that the business environment knows. 4-Giving great importance to the components of intellectual capital, including customer capital through improving relations with customers, human capital through training and continuing education, and structural capital through modernizing organizational structures and competencies. 5-The need to focus on the process of creating intellectual capital by giving the opportunity to individuals in order to allow them to express their opinions and suggestions on developing and improving work procedures, creating a creative environment. 6-The need to give great importance to meeting the needs of customers and responding quickly to them. 7-The company must strengthen the element of strategic alliances and rely on them and benefit from their experience in their field of work. Sources: 1-Al-Jalili, Miqdad Ahmed, Al-Rudaini, Taha Ahmed Hussein (2006), The use of accounting tools, Tanmiat Al-Rafidain Journal. 2-Al-Janabi, Amira Hatif (2010). The impact of customer knowledge management in achieving competitive superiority, a comparative study, between a sample of Iraqi banks, an unpublished master's thesis, University of Kufa, the Iraqi Republic. 3-Al-Mutairi, Muhya bin Khalaf Eid (2007). Intellectual capital management and development in university education in the light of contemporary transformations, (conceiving a proposed American Journal of Business Management, Economics and Banking Volume 9 Feb., 2023 P a g e | 53 www.americanjournal.org supplementary requirement for obtaining a doctorate degree in management and planning, Umm Al- Qura University, Saudi Arabia. 4-Hussein, Nahida Ismail (2002), Intellectual capital and its impact on employee performance management, An analytical study of the opinions of a sample of heads of scientific departments at the University of Mosul, Iraq. 5-Talib Kamel and Dr. Mohammed Al-Abbadi, (2006), Studying Intellectual Capital Strategies with the Competitive Performance of the Institution, University of Sharjah Journal for Humanities and Social Sciences, Volume (7) Issue (2). 6-Al-Saeed, Abdel Hakim ,(2008), Human Resources Management, Challenges and Experiences, Applications, Scientific Book House for Publishing and Distribution, Cairo. 7-Nahla Qassem Al-Jundi (2003), Accounting Treatments for the Problems of Measurement and Disclosure of Intellectual Capital, Master’s Thesis in Accounting, College of Administration and Economics, University of Mosul. 8-KAPLAN. & Norton. J.P, Management Information Systems Managing The Digital Form, Pearseon Hall, 2004. 9-Al-Zoubi, Hassan Ali (2003). “The Impact of Strategic Information Systems in Achieving Competitive Excellence”: An Applied Study in Jordanian Banks Listed on the Amman Stock Exchange, The First Scientific Conference “Business Economics in a Changing World”, Applied Sciences National University, Amman. 10-Adnan, Ahmed Karaji (2001) “The Impact of Training on Achieving Competitive Advantage”, Analytical Study of Opinions of a Sample of Directors of Governmental Hospitals in Baghdad, Master’s Thesis in Management. 11-Mohsen, Taher, and Drees, Wael (2004). “Strategic Management: An Integrated Systematic Perspective,” Wael Publishing House, 2nd Edition, Amman, Jordan. 12-Salman, Ghassan Qassem (2004). “Contemporary Techniques and Systems in Operations Management”, 1st Edition, Dar Al-Tharaa for Publishing and 13-Mustafa, Ihsan Muhammad Nazir (2006), Saudi Hospital Administration, General Administration of Research 14-Al-Ghalbi, Taher, and Drees, Wael (2009). “Strategic Management: An Integrated Systematic Perspective”, Wael Publishing House, 2nd Edition, Amman, Jordan. 15-Proby, Mustafa (2005). “Intellectual Capital and its Role in Achieving the Competitive Advantage of the Palestinian Cellular Communications Company”, Jawwal, The Islamic University, Gaza.