One of the most significant challenges of firms in a matured industry is to remain
competitive, increase market shares and growth. Many firms often deploy their available
resources to relevant quarters to achieve a competitive edge over its rivals, but little
attention has been paid to intellectual capital as a non-material resource of attaining a
competitive edge. This study seeks to explore the effect of human, structural and relational
capital on operational performance of hospitality firms. The study adopted a survey research
design whereby questionnaires were administered to a sample of two hundred and forty
(240) respondents. Multiple regression analysis was employed to test the three (3)
hypotheses formulated. The study found that human, structural and relational capital have
a significant and positive effect on operational performance. The study concludes that
intellectual capital is an important and necessary factor to be considered by firms in terms
of achieving competitive advantage. The study recommends intensive and well-structured
training for staff, the creation of corporate memory as well as the improved relationship
with stakeholders.
