Abstract: This paper explores the relevance and importance of measurement of IC and its impact on performance in the Caribbean hospitality industry. A survey using a 7‑point Likert scale was administered to hotel managers to test the relationship between measurement of IC and performance controlling for hotel size and rating of the hotel. The data analysis techniques used were exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and hierarchical multiple regression. The analysis of h ierarchical multiple regressions allowed us to support the hypothesis that measurement of IC explained a significant additional proportion of variance in performance above and beyond that of number of hotel rooms and hotel ranking. This finding of a sign ificant and positive relationship between measurement of IC and performance has relevance to both IC academics and practitioners, as it validates the use of measurement of IC to enhance performance. This paper adds to the extant literature on IC within th e Caribbean and the hospitality industry both under‑research areas in terms of IC.
The Mediating Effects of Sensemaking and Measurement on the Intellectual Capital and Performance Linkage pp284-295
Intellectual capital can be a major factor that can aid Caribbean policy makers as the region transitions from its agricultural based economy to service based economies with tourism being the largest contributor to GDP. This paper adds to the extant literature by providing literature on IC within the Caribbean and the tourism industry. Additionally, while the research has emphasized defining and measuring IC and its components, and their impact on firm’s performance theoretical questions remain concerning the synergistic, dynamic and contextual nature of IC. In addition, the use of sensemaking to provide the foundation for understanding the interaction of the IC components and firm’s performance will further enhance the IC literature. This paper reports on the development and testing of a theoretical model concerning the mediating effects of measurement of IC and sensemaking on the components of IC and performance linkage. This quantitative study used structural equation modeling (SEM) to test the model and structural relationships among the components of IC and performance mediated by sensemaking and measurement of IC. Independent variables used in the model were HC, RC and SC; with sensemaking and measurement of IC being the mediating variables and performance, a composite scale measuring managers’ perception on relative changes of their performance of financial and non‑financial measures, being the dependent variable. The study shows that HC, RC and SC are related to sensemaking, that measurement of IC is associated with performance, that measurement of IC mediates the relationships between RC and performance and SC and performance, and it validates the relationship between HC and performance.