PERTANIKA JOURNAL OF TROPICAL AGRICULTURAL SCIENCE

The main aim of this paper is to study the effect of intellectual capital (IC) on turnover intentions (TIs) among employees in Malaysian private organisations. Measuring IC and its influence on employee's TIs represents an initial step. Until recently, there has been little quantitative analysis of IC elements: human capital, customer capital, structural capital, social capital, technological capital and spiritual capital in predicting employee's TIs. By using a non-probability random sampling method, this study involved 189 subjects who are working in Malaysian private organisations from various industries, departments, positions, tasks and responsibilities. Results showed that only structural capital negatively influenced employee's TIs from the present organisations. Meanwhile, organisational culture, systems and procedures, employee development and involvement on decision making, up-to-date policies, technologies and networking are the keys to enhance employee's retention. The key evidence presented in this study suggests that organisations should establish competitive working environment, systems and infrastructures to encourage employee's commitment, interaction and development. There is a wide gap in the literature discussing on the influence of IC on retention and TIs. This indicates that there is a need to justify the effects of IC elements on the turnover of specific group of employees and industries by conducting more quantitative and qualitative studies to determine and witness the relationships.