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This study focuses on effectiveness of intellectual capital and its impact in organizational performance through the SECI model of building knowledge. A survey questionnaire was used to collect data for this research. (SPSS) and the structural equation modelling (AMOS) was employed to examine the associations hypothesized. This study suggests findings according to National Enterprise of Electronic Industries which indicated that The measurement model of effectiveness of intellectual capital consists of effectiveness of human capital, structural capital and effectiveness of relational capital, the measurement model of SECI model includes socialisation, externalisation, combination and internalisation and the measurement model of performance contains three factors ; financial performance, productive performance and marketing performance. More importantly, the findings revealed that there is a significant positive impact of effectiveness of intellectual capital on organizational performance overall. Besides, effectiveness of intellectual capital is strongly positive impact on the SECI model of building knowledge, there is strongly positive impact of SECI model on organizational performance and that the SECI model mediates the association between the effectiveness of intellectual capital and organizational performance, this means that all hypotheses are true.
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