The Role of Intellectual Capital in the Managerial Leadership Processes ( A Study Based on the Views of a Sample of Managers Selected from a Pipeline Company in GHARDAIA Province , Algeria

How could Intellectual Capital be invested? And what is the relationship between the Intellectual Capital and the actualization of the employed managerial leadership processes? The research is concerned with the views of 30 managers working in ANABIB Company for establishment answers regarding the questions above. After obtaining required statements and doing the convenience statistical processes for variable research. The researchers have come up with a number of conclusions. We note that: -There is a significant relationship between the Intellectual Capital and the managerial leadership processes. In addition the researchers have presented a number of suggestions, The most important is that: The managers should continuously know the different new technologies and invest them in activities practice.


INTRODUCTION
The interest in the intellectual capital issue in administrative literatures had increased lately, the writers and people interested in the management field made multiple efforts during the nineties in order to reach crystal clear concepts linked with intellectual capital and the means of its measuring, its significance and the nature of its relationship with the success, sustainability and perseverance of business organizations.
Writers almost agree unanimously that the intellectual capital is deemed to be one of the main requisites and pivots of the achievement of the sufficiency and effectiveness of the administrative leadership processes as it represents one of the major elements of its strength and success if it is able to estimate it as one of its incorporeal basics and if it gains the capacity to manage these basics and invest them as important resources and then maintain them.
The administrative leadership is considered as the first part responsible for the supporting and implementation of intellectual capital management and spreading it theoretically and in practice between the sections of the organization in general and its activities and processes consisting in the ability to influence others and the leadership behavior, situational leadership and efficient interactive leadership in particular because the intellectual capital is an investment made by the organizations in order to be adopted in its activities to develop it and fulfill its strategic goals.
Regarding the importance of the issue and the need to carry out a field research in business organizations because as they lack a clear understanding of it and its tremendous use for them, in addition to the evident shortage in such vital researches, as if this research was a field research in the industry sector that is granted an imminent importance in many countries of the world such as Algeria because it contributes effectively to the economies of such countries.
The research was divided into four parts in order to achieve its goals, the first part dealt with the aspects of theoretical enrichment linked with the research subject, the second one was about the methodology of research while the third one was about the demonstration and analysis of data and the experimentation of hypotheses and finally the fourth one shed the light on the main conclusions and recommendations reached by the research.

I.1 intellectual capital: Intellectual Capital Significance
Intellectual capital is an up-to-date subject in the literature of Administrative studies.The early studies on this subject started on the seventies, and are still under research and still developing.
There is no one common definition of intellectual capital, hereafter you will find all of the significations that have been given to this concept since 1994 until 2004 so they represent a set of definitions that dealt with the concept as follows: • The unique capacity that the organization has over its rivals, realized by the integrity of different competences and it contributes to the increase of the value presented to buyers and is one of the sources of the competitive feature (Hamel.1994: 19).
• A feature of leaders supporting transformation and it represents their ability to transform the technique from research to manufacturing with a high level of success that contributes to the survival of the organization in the world of competition for a long time (Webster, 1995: 136).
• Excellent capacities of a number of people working in the organization and which enable them to provide intellectual contributions that increase the production of the organization and fulfill high levels in comparison to peer organizations (Youndt et al., 1996: 839).
• Knowledge assets that have the power and the technique from research to manufacturing with an excellent success considered as the major indicator of the success of the national and international organization (Endres, 1997: 96).
• An intellectual united power that forms a combination of knowledge, intellectual features and expertise that represent the main raw materials for today's economies (Yogesh.1998:8).
• The set of competences existing in the organization and which have an enlarged knowledge enabling it to make the organization international through the satisfaction of the customers' needs and the opportunities provided by the technique (Ulrich.1998: 126).
• The competitive assets that implement the process of creative and strategic development based on creativity and innovation which are considered as the key leading to the survival in the work environment, which is changing on a fast pace (Hansen. et al.. 1999: 106).
• A set of informative resources (of people) including two sorts of knowledge, explicit knowledge which is expressed or written easily so it could be transferred to others in the form of documents and tacit knowledge which is based on personal experiences and evident rules used in the development of the organization (Daft 2001: 258).
Finally, the intellectual capital plays a complementary role with knowledge management and this role is incarnated in the effective contribution to the Organizational Development and the Competitive Advantage through the effective management processes of Intellectual Recourses (Eppler.2003: 191)

I.2 The importance of intellectual capital
• The importance of the intellectual capital comes from its state of being the most valuable asset in the 21th century (Drucker.1999: 75) within the framework of an economy called knowledge economy because it represents scientific forces capable of introducing essential amendments on everything in the business of their organizations in addition to their subsequent innovations (Stewart .1997:125).• In addition to what was said, the importance of intellectual capital appears in the importance of organizing its measuring which became one of the major indexes that reflect the development of administrative thinking as confirmed by Harvard Business Review in its number (September-October 1997) in the occasion of its 75 th anniversary and indications that the systems of knowledge capital measurement are considered as one of the main managerial accounting activities under globalization, computer science and communications (Firer. 2003 :30).

I.3. The methods of intellectual capital measuring
In the literatures of management and accounting, a set of methods were adapted in the measurement and assessment of intellectual capital and the main methods consist in the following: 1.The method of (Botis-1999), method of the (Skandia) company (First): The system of human resources accounting (Sackmann.1989 :463-485) indicate that the beginning of the use of Human Resources Accounting System goes to the researcher (Hermanson.1964),this system aims at estimating the value of people within the organization and this helps to use this value as a basis for administrative and financial decision-making, Human Resources Accounting System works on measuring and assessing the value of human capital in a financial way, the use of this system takes place mostly in service organizations.

(Second): Economic Value Added System
The economic Value Added is a way of global measuring of the performance linking between financial planning and capital balancing and the determination of the goals, relationship and communication with the campaign of shares and measuring the performance, recompense, planning systems and the way of leading these changing elements together in order to increase the value of the organization (or to losses).Although this system is not directly linked to the measuring of intellectual capital, it insists on the necessity to take it into account because that would lead to the increase of the economic added value.
(Third): Balanced scorecard system This system was suggested by urging the need of the organization administration to adopt a multidimensional measuring system able to measure the performance through the focus on changing elements and the financial and non-financial elements, and here it should be appointed that the researchers didn't analyze the intellectual capital concept in a clear manner yet the balanced scorecard system takes into consideration by estimating the abstract elements within the organization such as the learning and knowledge processes as well as the customer's satisfaction and so on.

(Fourth): Navigator Model System of Intellectual capital
This system was developed during the nineties by the researcher Leif Advinssion, the manager of the insurance Swedish company "Skandia" according to which the intellectual capital had been divided into the structural capital, as illustrated in the following schema: The navigator model system is based on more than a hundred indexes in measuring and assessing the intellectual capital yet there are many critics addressed to plenty of these indexes whose capacity of the pinpoint measuring of the intellectual capital is doubted.Chen et al. (2004: 201) insists on the need to make amendments to this system in order to guarantee its capacity to measure the intellectual capital with an exact manner (for instance the index of the number of computers in the organization is used as an index to structural capital while this index doesn't necessarily reflect the organization knowledge level of computers and doesn't reflect necessarily its use by the employees in a way that reinforces the competitive feature of the organization).

The method of Chen et al. (2004)
This model is essentially based on the Botis model, Chen's et al. model attempts to prevent weakness and shortage points of the previous models of intellectual capital measuring, it differs from the previous models by not concentrating mainly on putting indexes and financial measures to the intellectual capital.This model focuses on setting the requisite data and information in the right time and providing them for the manager in a way that enables them to draft and amend the strategies relating to intellectual capital and in way that makes the organization administration capable of using knowledge and fulfilling the sustainable competitive feature.Chen et al. (2004:201) asserts that this model focuses mainly on the assessment of indexes and the general directions of intellectual capital more than focusing on the economic value.The model was split into four elements (systems) working together and needing a continuous consolidation in order to reflect the realistic value of the organization, these elements are:

(First): Human Capital:
Human Capital is considered as the corner stone of the intellectual capital and it includes: The structural capital constitutes the system and structure of the organization and the organization that owns a strong and coherent structural capital is able to provide an adequate working environment capable of using the intellectual capital, growing it and taking advantage of its maximal energy and this leads to the consolidation of innovation capital and customer capital, there are multiple indexes of organizational capital most importantly:

Innovation capital Processes capital
1. Corporate Culture 2. Organizational Structure 3. Organizational Learning 4. Operation Process 5. Information System 3. Three ways Intellectual capital model Mouritsen and Larsen (2004) think that the intellectual capital could be understood and analyzed through the method of three ways (directions) of intellectual capital, Stewart points out that the three ways method consists of three essential elements as follows: (First): Human capital This element is responsible for the processes of thinking, creativity and innovation within the organization.

(Second): Organizational capital (structural)
This is the capital that can't be transferred from the organization to home or anywhere else outside the organization by employees and managers as they leave the organization and return to their homes at the end of the day.It is possible to restructure it, reproduce it and redesign it, and it's the most important items of technology, innovations, data, and information, announcement in addition to the corporate culture, strategies and structures.
Dr Swart considers the organizational capital (structural) as that knowledge that doesn't go with employees and in fact remains inside the organization and is mainly linked to entire ***.The organizational capital (structural) is a knowledge that could be purified, developed and shared with others, the most important constituents of the structural capital are: The organization is not capable of owning its customers but it fulfills a value added to it as a Customer Capital (Market Capital) through its relationship with these customers and the ability to acquire new ones, the ability to maintain the current customers, the volume of the market lot in measure of competitors and the market growth levels in measure of competition and the industry levels.

The Leadership Concept
Selznick thinks that leadership is a frigid phenomenon whose failure is mostly caused by the insufficient understanding of its nature (Dagger.2000) and due to the width and vitality of leadership, its definitions are multiplied but the most common elements in those definitions are that leadership includes the process of the leader's influence in his followers in order to reach an individuals' or the collective organizational (Dagger.2000).
In 1996 Heresy & Blanchard defined leadership as the process of influencing the activities of the individual or the group in order to fulfill a given objective under a given circumstance (Dagger, 2000: 418).
According to what have been mentioned, we could say that the successful managing leadership relies on the implementation of the following processes:

a. Leadership as an ability to influence others
A set of researchers defined the managerial leadership as the ability to influence others and according to this concept Naylor defined it as the process aiming at the directive influence on the behaviors of the individual or the group, the coordination of their efforts and relationships, setting an example to them in acts and conducts in a way that fulfills the aspired goals (Naylor et al., 1980: 230).
Whereas (Tead) explained it as the activity made by the person in order to influence others and make them cooperate to reach the goals that they aspire for (Tead, 1985: 20), according to these definitions, it seems to us that there are conditions that must be filled in order to practice the managerial leadership most importantly: 1.The existence of a group of people 2. The existence of a person among the group's members able to have a positive influence on the behavior of the other members 3. The goal of the influence must consist in guiding the group's activity and their cooperation in order to reach the common goal that it strives for.
Through the noticing of these concepts it appears to us that the efficiency of leadership by its definition as an influence process is defined in the degree of the leader's influence capacity on his followers in a way that leads to the accomplishment of the aspired goals and the leader's capacity to influence others within the personal features that enables him to have this influence.

Behavioral leadership
According to this concept Sikula defined it as a behavioral process carried out by the leaders that guide the others who on return describe the legitimacy on this behavior (Sikula, 1977: 8); and in a similar meaning both Davis and Newston indicated that leadership is an interactive process between the leader and his followers and under this leadership the leader encourages the people that he leads and helps them to work enthusiastically in order to fulfill the goals (Davis and Newston, 1985: 158).
Leadership as a behavior is the natural result of social interaction between people in the same place and the same time resulting necessarily in showing to the audience the person who takes in charge guiding individuals and organizing their business (Nabil, 1995: 72).
Leadership as a behavior aims at realizing the goals of the group, its coherence and interrelation of its members through the contribution to different decisions' making when facing up different attitudes for the interest of the organization or the group so it's not limited on one person but it is a common interaction between the group members as long as they strive for the same goals.The relationship here is an interactive one between the leader and his followers, this chapter deals with the failure of the last one where the focus was mainly on the leader's influence capacity on his followers in the light of the personal features that assures him this influence.

Leadership as a situational process
Due to the critics that were addressed to the mentioned concepts consisting in the concept of features and the concept of behavior in the managerial leadership, a new concept dealing with the failure of the two previous concepts through the acceptance of the importance of the factors related to the situation in which leadership is practiced and the influence of these factors on the leadership effectiveness.
According to this concept, Hersey and Blanchard see leadership with the same concept that it is an influence process on the activities of the group members towards the achievement of the goals in a situation fixed by itself.The situation includes different factors requiring a certain leadership and a successful leader in a certain situation where he is not necessarily a leader in all situations (Halloran, 1987).
According to the situational chapter, competent managerial leadership must be capable of understanding the situation from different perspectives and able to define the factors intricately linked to the situation which helps it to define the situation precisely in order to make the right decisions to deal with that situation (Costly, 1998).
According to our observation of the concepts treating leadership as a situational process, we conclude that managerial leadership here is composed of three elements: 1-The characteristics of the leader 2-The characteristics of his followers 3-The characteristics of the situation as they have a tremendous importance and the leader ought to be successful when his characteristics and features are suitable to the requirements or characteristics of the situation.

Leadership as an interactive process
McGregor defined it according to this chapter as a combined relationship between multiple variables that he set with the leader's characteristics, the situation, the approaches, the needs, the features of creativity and the characteristics of the organization (its structure, objectives and the nature of the works to be done) in addition to the economic, social and political variables (McGregor, 1996).
According to what was said, it seems to us that the concept that defines the managerial leadership as an interactive process i.e. the interaction between the features of the leader and the followers, the characteristics of the organization and the nature of the situation shows us the leader so taking into account the overall picture of the managerial leadership processes is the element that could provide us the best approach to be adopted in this research.

Third: the methodology of research 1-The problematic of the research
Through the consultation of the sources linked with the research subject, we concluded that there is no common consent between the writers about the intellectual capital subject and what led to the difference in its measures in addition to the lack of field researches linked to it.Under these circumstances, the research aimed at revealing the problem of the research subject as follows: 1. Is there any need to invest the intellectual capital in business organizations?2. Is there any relationship between the intellectual capital and "the managerial leadership processes"?

2-The objectives of the research
This research aims at achieving as follows: 1-Making this research a new contribution to the decrease of the shortage existing in the Arab library as far as the theoretical scope is concerned.2-Providing the Arab library with one of the practical researches that links the intellectual capital to the fact of managerial leadership processes.3-Reducing the gap of the oblivion of the studies approach of the intellectual capital importance and its role in achieving the sufficiency and effectiveness of the managerial leadership processes in addition to the knowledge of conclusions and recommendations.

3-The importance of the research
It is natural that the importance of this research stems from the fact of the subject importance that it treats and what we mean by this is that (intellectual capital) it plays an important strategic role in the magnifying of the organization value and it consequently contributes to achieve and consolidate its competitive feature, nevertheless, the Arab library still lacks specialized studies in putting clear measures and indices to measure and assess the intellectual capital in organizations, there is also a clear shortage in practical researches treated by the intellectual capital through its different variables and components, and its relationship with the success of the managerial leadership processes and the sustainable competitive feature.

5-The research hypotheses
In laying the foundations of the virtual research, the following hypothesis had been drafted:

The main hypothesis
There are no incorporeal relationship between the intellectual capital and "the managerial leadership processes", consequently three secondary hypotheses emerged from it:

*First sub-hypothesis
There are no incorporeal relationship between the human capital and "the managerial leadership processes"

*Second sub-hypothesis
There are no incorporeal relationship between the structural capital and "the managerial leadership processes"

*Third sub-hypothesis
There are no incorporeal relationship between the customers' capital and "the managerial leadership processes"

Data collection means
The research relied in collecting data on the following: a.The theoretical aspect: in order to acquire the available data and information, it resorted to Arab and foreign sources that treated the subject.b.The pragmatic aspect: within the framework of the pragmatic aspect, it adopted the following methods: 1. Personal Interview: with a number of company managers 2. Questionnaire application form: designed in a way that serves the research objective and its hypotheses, it included (23) questions distributed on the variables destined for study using the measure Five Point Likert-Type Scale.

Structural capital Customers' capital
Managerial leadership processes

The used statistical tools
A number of statistical tools suitable for the nature of the data had been used, the data was processed and the results were issued using the computer and the SPSS and Minitab programs.

Sample and Information gathering:
The research will concern the total number of 60 managers in the a pipeline company.A sample of 50% will be retained by the researcher.The dispatching have been followed by a twice remainder as well as by at least one visit.
Fortunately enough, 50 forms have been returned from which 20 incomplete have been cancelled which leave us with 30 accepted forms to be taken into consideration for analysis in the study.

Third: exposure of the results and the testing of hypotheses a. Society and the research sample
The individuals of the statistical society are composed of heads of departments and branches in the company, a random sample including (30) managers had been selected and then the questionnaire application forms illustrated in the table (1-3) were distributed on the research sample that was processed statistically.

Intellectual capital
Human capital

X1
The company does its best to keep the wellacquainted employees with the requirements of work X2 The employees who take the important administrative offices have enough options in the field of planning, organization, leadership and motivation X3 The company administration sees that trial and training are the best ways to acquire working competences X4 This company employees don't undergo frustration anxiety and the lack of the feeling of work safety X5 The administration does not reject the probation of a new employee or the introduction of modern ideas to confront work problems Structural capital

X6
The patents of the high-level employees have a tremendous percentage from the set of the company activities X7 The company does not prejudice the right of any inventor considering the rights of publishing, writing and invention X8 The company works constantly on protecting the trade mark and inculcating it in the customers' minds in fear of fraud and misguidance X9 The company procedures in the field of the assessment of the quality of its products are extremely rigid X10 The company's administrative information systems have the features of exactitude, modernity and right time Customers' capital

X12
The company spend tremendous sums of money to support the after-sale services that it provides for the customers X13 The company administration constantly aspire for the earning of new possible customers

X14
The company takes into consideration the customers' suggestions and preferences when designing new products and amending the existing ones or even abolish the unaccepted ones X15 The company works on exchanging information with its customers in order to open new perspectives Managerial leadership Processes

X16
The individuals working under your supervision comply to all of your orders and instructions X17 The working individuals aim at achieving the tasks and fulfilling the objectives designed by you on a complete persuasion X18 The mutual understanding between you and your followers is the basis of success and achieving goals X19 Work on considering the followers as a team work from which you get the ability to make decisions X20 Work on the amendment of the administrative decisions made by me whenever the circumstances change and the things that keep up with these changes X21 Any change in the decisions that I made is accepted and carried out immediately by the people working under my command X22 Strive for making the studied decisions taking into account the company's financial, human and organizational capacities in addition to its overall objectives as well as current circumstances X23 The studied decision gets the support of working individuals according to the mentioned elements From the table 1, all the principal variables (in bold) and the secondary variables (in usual writing) used in research and statistical analysis in addition to the statements codes indicated with (x) and which entered the computer tables in order to execute the statistical processing and each statement was given a number indicating it.
The answer was varied on the questionnaire statements between (1-5) according to the Five Point Likert-Type Scale as mentioned before, the answers 1 and 2 are considered negative towards the sentence related to them while the answers 4 and 5 are positive concerning the sentence related to them whereas the answer 3 is a neutral one knowing that the abovementioned sentences were drafted according to the indicated writers and researchers in the theoretical aspect and in a way that serves the research problems and its hypothesis Chen et al., 2004).

2-Exposure of the results
Here is an exposure of the results emerged by the current research:

a. Experimenting the first sub-hypothesis of the main hypothesis
The experimentation of the first sub-hypothesis issued from the main hypothesis through the testing of the relationship between the human capital and the managerial leadership processes and the results of the experimentation using the Spirman's method of ranks correlation revealed that the value of the correlation coefficient (rs) between the mentioned variables was (0.902) and the calculated (t) value reached (13.55) which is bigger than the (t) value in the table which confirms the existence of an incorporeal correlation between the two variables on the incorporeal level (0.01) and which requires the refusal of this non-existence hypothesis and the acceptance of the alternative hypothesis i.e. there is an incorporeal correlation between the human capital and the managerial leadership processes.

b. Experimenting the second sub-hypothesis of the main hypothesis
The results of the experimentation using the Spirman's method of ranks correlation (rs) between the structural capital and the managerial leadership processes indicated that the value of the correlation coefficient (rs) was (0.715) and the calculated (t) value reached (6.43) which is bigger than the (t) value in the table which confirms the existence of an incorporeal correlation between the two variables on the incorporeal level (0.01) and which requires the refusal of this non-existence hypothesis and the acceptance of the alternative hypothesis i.e. there is an incorporeal correlation between the structural capital and the managerial leadership processes.

c. Experimenting the third sub-hypothesis of the main hypothesis
The results of the experimentation using the Spirman's method of ranks correlation (rs) between the customers' capital and the managerial leadership processes indicated that the value of the correlation coefficient (rs) was (0.735) and the calculated (t) value reached (6.17) which is bigger than the (t) value in the table which confirms the existence of an incorporeal correlation between the two variables on the incorporeal level (0.01) and which requires the refusal of this non-existence hypothesis and the acceptance of the alternative hypothesis i.e. there is an incorporeal correlation between the customers' capital and the managerial leadership processes.

d. Experimenting the main hypothesis
The results of the experimentation using the Spirman's method of ranks correlation (rs) between the intellectual capital and the managerial leadership processes indicated that the value of the correlation coefficient (rs) was (0.844) and the calculated (t) value reached (10.92) which is bigger than the (t) value in the table which confirms the existence of an incorporeal correlation between the two variables on the incorporeal level(0.01)and which requires the refusal of this non-existence hypothesis and the acceptance of the alternative hypothesis i.e. there is an incorporeal correlation between the intellectual capital and the managerial leadership processes.
The following table indicates the abovementioned experimentation results: Fourth: conclusions and recommendations

CONCLUSIONS
By analyzing the field results and the experimentation of the current research models and hypotheses, the researchers reached the following conclusions: • The aspiration of the company administration to attract and maintain the staff of a scientific knowledge and a technical expertise of work specifications plays an important role in increasing the leadership capacity of influencing others and increasing the staff's response to orders and instructions and the pursuit of the staff to accomplish tasks and achieve the targets set by it.
• The company administration's interest and conviction in the of training programs consistent with the needs of their employees to gain new skills, their ability to be creative and to contribute strongly to the improvement and strengthening of the capacity of the leader, his potential and his image in the eyes of the staff and therefore they seek to implement his instructions and accomplish all the tasks assigned to them with all conviction.
• Encouraging and adopting the innovation and creativity cultures in work by the administrative leadership so as to contribute to the increase of the feeling of affiliation and their aspiration to achieve its goals.
• The follow-up of the latest scientific and technical developments by the company administration particularly in the field of information technology and its use in various activities, is an element related to solving business problems and supporting the capacity of administrative leaders in the organization to make decisions and determine appropriate targets whose accuracy and realism convince the staff that respond to its implementation and realization.
• The organization's efforts exerted in building strong relationships with the current customers and its constant strive to acquire new customers and retain them are linked with its ability to achieve the customers' satisfaction and thereby strengthen its administrative capacity.

Figure 1 :
Figure 1: Illustrating the value classification tree

: Customer Capital (Market Capital)
The Customer Capital (Market Capital) is one of the main constituents of intellectual capital as it demonstrates intellectual capital and transforms it into a market value and an organizational performance; there are multiple indexes of Customer Capital (Market Capital):The concept of Innovation Capital expresses a new combination of the main production elements and the elements relating to organizational production, innovation could be a new product or a new market, or a new technology or a mixture of innovations, there are multiple indexes of innovation capital such as: