Investment in the Hidden Wealth of Intellectual Capital and Its Effect on Competitive Advantage

Intellectual capital is a core issue among decision-makers in organizations. To face the pressures in a competitive marketplace, competitive advantage must be enhanced. Studies which have focused on examining the manufacturing firms’ competitive advantage in terms of intellectual capital (IC) processes, particularly in the case of Yemen, are few and far between. This paper examines the scope to which IC dimensions can explain competitive advantage in the manufacturing firms in Yemen. The study reached some conclusions, based on which some recommendations are made for managers and decisions makers in the industries, particularly those concerning the development of strategies to address the challenges in the competitive environment of the global market.