The purpose of this study is to investigate the influence of Relational Capital (RC) on Jordanian Pharmaceutical Manufacturing (JPM) Organizations’ Business Performance (BP). Practical data were collected by means of a questionnaire. Statistical techniques such as descriptive statistics, t-test, ANOVA test, correlation, multiple regressions and stepwise regression were employed. To confirm the suitability of data collection instrument, a Kolmogorov-Smirnov (K-S) test, Cronbach’s Alpha and factor analysis were used. The results of the study indicated a positive significant relationship between RC and JMP Organizations’ BP. Moreover, findings suggest that the JPM Organizations’ RC performance can clearly explain productivity and profitability more than market valuation. The use of a single industry study design limits its generalisability to other industries. The data is also limited to Jordanian Organizations; therefore, extending the analyses to other settings represents future research opportunities. The research results might help both academics and practitioners to be more ready to understand the components of RC and provide insight into developing and increasing them within their Organizations. RC is an important source of Organizations’ wealth and therefore it should be taken into serious consideration when formulating the JPM Organizations’ strategy.
Keywords: Business Performance (BP), Jordanian Pharmaceutical Manufacturing (JPM) Organizations, Relational Capital (RC)
