Table 4.6.

1 Regression Coefficients with QMS Variables as Influencer of Organizational

Performance
Variables in the model B SE  t P VIF R-squared
Constant .567 .252 2.253 .025
Focus on process .324 .086 .288 3.778 .000 2.364
Focus on customer .045 .061 .053 .733 .464 2.083 0.49
Leadership .240 .072 .261 3.339 .001 2.480
Business tactics .214 .070 .205 3.050 .003 1.831
R = .699 R = .478;
2
DW = 1.902; F = 49.546 ;
*
Sig. = 0.000

*Significant at 0.05 level of significance

The regression results suggest that there are three areas of quality management system
implementation that have p-values less than significance values of 0.05. This means these
variables significantly influence organizational performance. The areas that show significant
influence are: Focus on Process (B=0.324, p=0.000), Leadership (B=0.240, p=0.001)and Business
Tactics(B=0.214, p=0.003). The linear combination of these predictors explain that 49 per cent of
the variability in organizational performance can be explained by quality management system
implementation (R = .49, F = 2, 208) = 49.55, p < 0.05). Further, the closeness of the difference
2

between the R and the R (.12<1.5) denotes a more reliable model.

2

Although the variables Focus on Process, Leadership and Business Tactics are statistically
significant, the standardized coefficient indicate that it is Focus on Process that has the most
influence on the respondents’ rating on organizational performance: β=0.288, t(212) = 3.778, p <
0.05. Among these significant variables it is Business Tactics that has the lowest influence.
The Focus on customer (B=0.045, p=0.464) dimension of quality management system
adoption does not show significant influence on the organizational performance ratings of the
respondents.
The VIF values in the table indicate that there is no multicollinearity concerns present in the
analysis. This indication is derived in relation to the view that VIF values that exceed 10 suggest
potential multicollinearity problems in the model (Tabachnick&Fidell, 2007; Field, 2013). In
addition, the tolerance values are higher than .20 denoting that there is no problem of
multicollinearity (Kenny, 2015).
The regression equation for this model is as follows:

Organizational Performance =.567 + .324*Focus on Process+.240*Leadership

+.214*Business Tactics
= .567 + .324(4.1067)+.240(4.1032)+.214(4.1472)
= 3.771 (High Performance)

Influence of Level of Intellectual Capital Accumulation on Organizational Performance

Table 4.7.1 Regression Coefficients with IC Variables as Influencers of

 Organizational Performance
Variables in the model B SE  t P VIF R-squared
Constant 1.046 .196 5.333 .000
Human .390 .067 .418 5.858 .000 2.241 0.524
*

Social .360 .072 .356 4.990 .000 2.241 *

R = .724; R = .520 ;
2
DW = 1.919; F = 115.086; Sig. = 0.000

*Significant at 0.05 level of significance

The multiple regression results in Table 4.7.1 pertain to the influence of the intellectual capital
accumulation toward the overall organizational performance. The variables used as regressors in
the model are the mean ratings of the respondents in Human Capital and Social Capital. The
regressand in the model is the mean rating of all organizational performance indicators in the
research instrument.
The regression results reveal that all variables of intellectual capital have significant influence
in the perception of respondents about organizational performance: Human Capital(B=0.390,
p=0.00)and Social Capital (B=0.360, p=0.000).Since the p-values of these variables are less than
the significance values of 0.05 then the null hypothesis is rejected. The variables of intellectual
capital significantly influence organizational performance. The linear combination of these
predictors explain that 52 per cent of the variability in organizational performance can be explained
by intellectual capital accumulation (R =.52, F = 2, 209) = 115.09, p<.05). Further, the closeness
2

of the difference between the R and the R (.004<1.5) signifies a more reliable model.
2 2

Although all variables of intellectual capital are statistically significant, the standardized
coefficients indicate that it is Human Capital that has the most influence on the respondents’ rating
on organizational performance: β=0.418, t(211) = 5.858, p < 0.05.
The VIF values in the table indicate that there is no multicollinearity concerns present in the
analysis. This indication is derived in relation to the view that VIF values that exceed 10 suggest
potential multicollinearity problems in the model (Tabachnick&Fidell, 2007; Field, 2013).
The regression equation for this model is shown as follows:

Organizational Performance = 1.046 +.390*Human Capital +.360 (Social Capital)

=1.046+.390(3.7671) + .360(3.9280)
=3.929 (High Performance)