Moderating effect of board characteristics in the relationship of structural capital and business performance: An evidence from Pakistan textile sector

The current paradigm has changed and firms are shifted towards the knowledge-based economy and hence, knowledge become a new engine for the corporate development. Structural capital (SC) is considered a vital component of the intellectual capital (IC) which plays an essential role to increase the performance of the business in the knowledge-based economy. The aim of the research is to examined the relationship between the SC and BP through the moderating effect of board characteristics (BC) in the listed textile firms of Pakistan. Data has been collected from 290 senior managers of listed textile firms. Based on collected data, further analysis was done by Smart PLS 3.2.8 through the Structural Equation Modeling (SEM) for the measurement and strutructural model. The SEM analysis has shown SC has a significant and positive association with the BP in the listed textile firms of Pakistan. On the other hand, indirect effect has shown BC did not significantly moderates in the relationship of SC and BP. The findings of the current study reveals that textile firms in Pakistan should more emphasize on the SC to uphold their BP. The current study contribute in the extent literature of SC where there has a absence of research works in Pakistan context. Moreover, current research might provide help to both the Practitioners and academicians in the organizations.