________________________________________________________ Original Research . Interpretive Structural Modeling (ISM) of Intellectual Capital Components Mohammad Saleh Owlia * . Kosar Roshani ・ Mohammad Hossein Abooei Received: 11 October 2020 / Accepted: 28 December 2020 / Published online: 29 December 2020 * Corresponding Author, owliams@yazd.ac.ir Department of Industrial Engineering, Yazd University, Yazd, Iran Abstract In recent years, many organizations have made attempts to identify, measure, and manage their intellectual capital (IC). The efficiency of IC largely depends on identifying its main components and their relationships. So far, however, no study has been conducted to clarify the interactions among those components or to develop a model for laying out a hierarchy of IC components. There is, indeed, an urgent need to analyze the behavior of IC components so that the corresponding policies may be successfully implemented. This paper aims to identify the relationships among the IC components with a focus on the banking industry. A literature review was used to identify the 16 most important IC components. The Interpretive Structural Modeling technique was practiced to determine the interrelationships among these components, based on the data gathered from the Export Development Bank of Iran. The interconnections between the components were clarified. Furthermore, MICMAC analysis and classifying them into four categories including autonomous, driver, dependent, and linkage components regarding their driving and dependence power is a new effort in the field of IC. A hierarchical structure was proposed through prioritizing, sequencing, and leveling of the components. The adoption of such an ISM-based model of IC components in the banking industry would provide insights for managers, decision makers and policy makers for a better understanding of these components and to focus on the major components while managing their IC in their organizations. Keywords: Intellectual capital; Banking industry; Interpretive Structural Modeling; MICMAC analysis 1. INTRODUCTION Nowadays, in perfectly competitive markets, intellectual capital (IC) is taken into account as a key issue to gain and maintain a competitive advantage [1]. In this regard, IC refers to knowledge, work experience, organizational technology, customer relationships, and professional abilities that establish a competitive advantage in markets [2]. From the perspective of Ordonez De Pablos [3], intellectual capital can correspondingly get involved in value creation for organizations through improving the foundations for growth, flexibility, and innovation. Therefore, organizations are expected to understand their own intellectual capitals and make out their roles in the domain of organizational success. Such organizations can benefit from them to make the most important decisions, adopt oppropriate policies, and allocate their resources so as to achieve a sustainable competitive advantage [2]. In the wake of the challenges brought about by globalization, internationalization, and liberalization, banking industry has undergone scores of changes [4]. As it is noted, since banks need to improve their profitability, there is currently an emphasis on resource efficiency, capital performance, and earnings growth. Also, information and communication technology is being used in many ways to reduce costs, increase efficiency, and accelerate innovations [4]. According to Kubo and Saka [5], banking industry can be regarded as an ideal area for research on intellectual capital because reliable published data are available, the nature of business in banking industry is highly intellectual,