Determining the Moderating Effect of Intellectual Capital on the Relationship between Corporate Governance and Financial Performance of Ventures of the Seventh-day Adventist Church in Kenya

Abstract

This study examines the moderating role of intellectual capital in the relationship between governance practices and the financial performance of Ventures within the Seventh - day Adventist (SDA) Church in Kenya. Intellectual capital, encompassing human, structural, and relational capital, has been recognized as a critical driver of institutional financial performance. Governance practices, including transparency, accountability, and strategic decision-making, significantly influence financial stability and operational efficiency. This study employs a mixed-method research design, combining qualitative and quantitative analyses. Data were collected from 120 respondents across ten SDA Ventures, including administrators, financial managers, and governance board members. Descriptive and inferential statistical analyses were performed using hierarchical regression models to assess the moderating effects of intellectual capital. Findings indicate that intellectual capital strengthens the relationship between governance practices and financial performance, enhancing institutional sustainability and efficiency β = .246, p < .05, B = .200). The study recommends investing in intellectual capital development, improving governance frameworks, and fostering knowledge-sharing practices to maximize financial performance.

Keywords:       Intellectual Capital, Governance Practices, Financial Performance, SDA Ventures, Financial Sustainability, Institutional Efficiency, Strategic Decision-Making