Review of empirical research on intellectual capital and firm performance

2015 ◽  
Vol 16 (3) ◽  
pp. 518-565 ◽  
Author(s):  
Henri Inkinen
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Empirical Studies ◽  
Empirical Literature ◽  
Content Type ◽  
Book Value ◽  
Intangible Resources ◽  
Meta Level ◽  
Practical Implications ◽  
Level Analysis

Purpose – The basis of value creation has shifted from tangible factors of production towards intangible resources such as intellectual capital (IC) (e.g. Grant, 1996). The average organisation’s IC has been estimated to be three to four times over its book value (Edvinsson and Malone, 1997); thus, it is vital for companies to understand how it is created, managed, measured and evaluated. However, there are still many debated and complex issues, and the empirical measurement of IC is one of those. The purpose of this paper is to determine if IC systematically influences firm performance. Design/methodology/approach – A systematic review procedure was utilised as this study’s research design. Findings – The findings demonstrate that IC influences firm performance mainly through interactions, combinations and mediations. Also, there is a great deal of evidence on the significant relationship between IC and firm’s innovation performance. Research limitations/implications – This paper reviews only empirical studies based on survey data and statistical methods of analysis. Practical implications – The research points to some focal aspects of IC that are associated with firm performance. Originality/value – This is the first study to review empirical literature on IC and firm performance. It increases the current understanding by bringing together the research related to the issue and drawing meta-level analysis.

How does intellectual capital efficiency affect firm performance? The moderating role of family management

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yolanda Ramírez ◽  
Julio Dieguez-Soto ◽  
Montserrat Manzaneque
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Family Management ◽  
Content Type ◽  
Intangible Resources ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact ◽  
Moderating Role

PurposeThe purpose of this paper is twofold: to know whether those firms that achieve greater efficiency from their intangible resources (intellectual capital) also obtain greater performance; and to analyze the moderating role of family management on that relationship in small to medium-sized enterprises (SMEs).Design/methodology/approachThis paper conducts an empirical study with different econometric models using a panel data sample of 6,132 paired firm-year observations from Spanish manufacturing SMEs in the period 2000–2013.FindingsThe findings suggest that intellectual capital efficiency is a key factor that allows the firm to achieve and maintain competitive advantages, obtaining greater performance. Additionally, this research also shows that the moderating role of family management can be a double-edged sword depending on the type of intangible resources.Practical implicationsThis paper may give managers an insight in how to better utilize and manage intangible resources available in their firms to improve competitive advantage and ultimately firm performance. Additionally, on the basis of the Socioemotional Wealth perspective (SEW), this article argues that family-managed firms that focus on SEW preservation can enhance the impact of structural capital efficiency on performance.Originality/valueThis paper extends the prior literature by studying the joint effects of intellectual capital efficiency, distinguishing between human capital and structural capital efficiency, and family management on performance in the context of SMEs.

Determinants of retail store network expansion via shop-in-shops

2018 ◽  
Vol 46 (10) ◽  
pp. 915-943
Author(s):  
Karine Picot-Coupey ◽  
Jean-Laurent Viviani ◽  
Paul Amadieu
Keyword(s):  
Intellectual Capital ◽  
Design Methodology ◽  
Comprehensive Understanding ◽  
Content Type ◽  
Expansion Strategy ◽  
Network Expansion ◽  
Intangible Resources ◽  
Retail Company ◽  
Positive Effect ◽  
Practical Implications

PurposeWhy do some retail networks operate shop-in-shops along with stand-alone units while others do not? Drawing on a resource-based and intellectual capital (IC) perspective as a broad theoretical lens, the purpose of this paper is to focus on retailer-run shop-in-shops and examine the determinants of their adoption.Design/methodology/approachTo gain a comprehensive understanding of shop-in-shop adoption by retail branded networks, a research design mixing a quantitative study (n= 170) and a qualitative study (n= 19) was adopted to test nine hypotheses regarding these determinants of the adoption of retailer-run shop-in-shops and explore in greater depth the processes whereby they actually occur.FindingsThe main findings show that intangible resources are major determinants of the choice to operate shop-in-shops while tangible resources are minor determinants. The more robust results of the analysis lie in the positive effect of own-label merchandise range, premium pricing strategy, positioning based on symbols, retail concept fast renewal and high sector specialisation on the choice to operate a shop-in-shop. The effect of financial constraints on the decision to expand via shop-in-shops is limited.Research limitations/implicationsThe authors emphasise the importance of marketing-related and company-related characteristics in differentiating the likelihood of retail networks to expand via shop-in-shops. These results lend support to the relevance of a resource-based and IC perspective in explaining the propensity of retailers to develop via shop-in-shops.Practical implicationsThe decision to operate shop-in-shops should depend on the extent to which intangible resources – the most important being retail positioning grounded in symbols, an own-label merchandise range, and a high retail branded network reputation – can be valued and enhanced. Expanding a retail network via shop-in-shops does not appear to be a financially constrained expansion strategy: it must be considered as a relevant first best strategy when an independent and young retail company has intangible resources to value but limited tangible resources.Originality/valueThe study contributes to channel management and retailing research in four ways. First, it precisely delineates the specific characteristics of shop-in-shops. Second, it provides theoretical explanations – based on a resource and IC perspective – of determinants that influence the choice of shop-in-shops. Third, it empirically tests the influence of marketing-related and company-related characteristics when adopting shop-in-shops. Fourth, it provides insights into how adopting shop-in-shops. To the authors’ knowledge, the research is on the first to analyse theoretically and test the determinants for the choice of retailer-run shop-in-shops.

From understanding business guanxi to practising it: a golden rule for MNCs in China

2016 ◽  
Vol 7 (1) ◽  
pp. 39-44
Author(s):  
Steven Tam
Keyword(s):  
Firm Performance ◽  
Multinational Corporations ◽  
Design Methodology ◽  
Empirical Studies ◽  
Golden Rule ◽  
Basic Solution ◽  
Content Type ◽  
Starting Point ◽  
Practical Implications

Purpose This article reveals a managerial issue that multinational corporations (MNCs) in China are at a strategic crossroad where their employees are competing with the same sources of guanxi networks for different business deals simultaneously. Design/methodology/approach Triggered by a real company case in China and guided by a literature review on business guanxi, the author bridged them into a specific inquiry, as little was known and should be further examined. Findings The author identified a paradoxical/applied scenario in MNCs between the use of guanxi and overall firm performance damaged by overusing it. Research limitations/implications Empirical studies are deemed necessary to seek more understanding between the role of guanxi and MNCs in China. Practical implications Guanxi is not a straightforward guarantee of business achievements in China. Management should note the influence of its actors – own employees – who can potentially diminish the positive returns of guanxi on overall firm’s achievements because of non-obvious interplays among employees and “contacts” on the overlapping guanxi networks. The larger the organisation, the higher the risk is. Originality/value This article proposes a new line of thoughts for practitioners about the effect of business guanxi on overall firm performance and serves as a starting point for academics to explore empirical research. The concept of overlapping guanxi networks is institutionalised and discussed. A three-step rule is also suggested for MNCs as a basic solution.

Exploring intellectual capital disclosure as a mediator for the relationship between IPO firm-specific characteristics and underpricing

2015 ◽  
Vol 16 (3) ◽  
pp. 639-660 ◽  
Author(s):  
Shaw Warn Too ◽  
Wan Fadzilah Wan Yusoff
Keyword(s):  
Initial Public Offerings ◽  
Intellectual Capital ◽  
Design Methodology ◽  
Firm Characteristics ◽  
Content Type ◽  
Public Offerings ◽  
Intangible Resources ◽  
The Cost ◽  
The Relationship ◽  
Practical Implications

Purpose – The purpose of this paper is to examine the direct and indirect impact of firm-specific characteristics on the level of underpricing among Malaysian initial public offerings (IPOs). Design/methodology/approach – Content analysis of IPO prospectuses was used for 331 firms underwent listing between 2002 and 2008. The extent of disclosure was computed by applying the disclosure index of Bukh et al. (2005). Findings – Of the five firm characteristics examined, there is a direct relationship between the firm’s financial performance and the level of foreign activity, and the level of underpricing, instead of being mediated through disclosure. However, some firm characteristics have direct influence on the extent of disclosure but do not have any influence on underpricing. Research limitations/implications – This empirical study concentrates on the Malaysian IPOs on a single disclosure mechanism. Other disclosure items can be examined together with the intellectual capital disclosure items. Practical implications – As the findings reveal that the extent of disclosure is relatively low in influencing the level of underpricing. Had the disclosure been higher, it may have some influence on underpricing. The accounting governance board need to regulate the disclosures of the intangible resources so that the level of underpricing can be minimized. Originality/value – This study provides new insight for the examination of direct and indirect (through disclosure) association between firm-specific characteristics and underpricing. The findings shed some lights to the IPO issuers to enhance disclosure so that the cost of capital can be reduced.

The role of intellectual capital on process and products innovation. Empirical study in SMEs in an emerging country

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nicolas Salvador Beltramino ◽  
Domingo Garcia-Perez-de-Lema ◽  
Luis Enrique Valdez-Juarez
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Content Type ◽  
Industrial Companies ◽  
Emerging Country ◽  
And Performance ◽  
Practical Implications

PurposeThe objective of this study is to analyze the influence of the intellectual capital of SMEs on innovation and organizational performance in the context of an emerging country.Design/methodology/approachThe sample consisted of 259 industrial SMEs from the Cordoba, Argentina. The data were analyzed by partial least squares–structural equation modeling (PLS–SEM).FindingsThe study provides empirical evidence that the three components of intellectual capital generate positive and significant effects on innovation in processes and products. Structural capital is the component that has the greatest effect on innovation. It also showed a positive and significant relationship between innovation in processes and performance, contributing to the scarce empirical literature in the context of SMEs.Research limitations/implicationsThe research exposes limitations that uncover a path for future. First, the work uses as the only source of information, the consultation at the highest level of the company. Second, the study covered only industrial companies. Future studies should focus on other sectors and countries.Practical implicationsThe results may have important practical implications for SME owners and managers and offer a vision of the influence of intellectual capital on the innovative capacity of the organization.Originality/valueThe value of work lies in establishing the importance of intellectual capital in the environment of an emerging country such as Argentina, given the low level of knowledge that exists in this area.

The structural capital, the innovation and the performance of the industrial SMES

2020 ◽  
Vol 21 (6) ◽  
pp. 913-945 ◽  
Author(s):  
Nicolás Salvador Beltramino ◽  
Domingo García-Perez-de-Lema ◽  
Luis Enrique Valdez-Juárez
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Industrial Sector ◽  
Empirical Literature ◽  
Equation Modeling ◽  
Content Type ◽  
Structural Capital ◽  
And Performance ◽  
Practical Implications

PurposeThe objective of this study is to analyze the influence of the structural capital of SMEs in the capacity of innovation and organizational performance, in the context of an emerging country.Design/methodology/approachThe sample consisted of 259 industrial SMEs from the province of Córdoba Argentina. The data was analyzed by Partial Least Squares Structural Equation Modeling (PLS–SEM).FindingsThe study provided evidence that acquisition of information and knowledge management, organizational culture and structure, systems and processes have positive and significant effects on the innovation capacity of SMEs. Only the communication and cohesion component did not show positive and significant results on it. It also showed a positive and significant relationship between the capacity for innovation in processes and performance, contributing to the scarce empirical literature in the context of SMEs.Research limitations/implicationsThe research exposes some limitations that uncover a path for the development of future lines of research. In the first place, the work focuses on the use of a single source of information, the consultation at the managerial level of the company, without considering other representative variables to measure the capacity for innovation. Second, the study covered only companies in the industrial sector and country. Future studies should focus on other sectors and countries.Practical implicationsThe results of the study can have important practical implications for the owners and managers of SMEs. The results offer a vision of the dimensions of structural capital that most influence the innovative capacity of the organization. This is especially useful given that in the context of Argentina there is a low level of knowledge and structural capital is key to being more competitive. The managers of SMEs can thus increase the innovative potential of the company and favor the acquisition of information and knowledge and improve its processes and systems to contribute to the development of innovation capabilities to make SMEs more competitive.Social implicationsThe results obtained can be useful for those responsible for making public policy decisions, since in the knowledge of the economy to maintain a developed state and nation, it is necessary to include as one of the main issues on the national agenda the improvement of intellectual capital of its people to promote the competitiveness of companies.Originality/valueThe research contributes to the development of intellectual capital literature focused on the generation of innovation and performance in the perspective of SMEs in emerging countries.

Intellectual capital and firm performance

2020 ◽  
Vol 36 (6) ◽  
pp. 37-39
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Intellectual Capital ◽  
Design Methodology ◽  
Reading Time ◽  
Positive Impact ◽  
Content Type ◽  
Strong Focus ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Intellectual capital (IC) can make a substantial positive impact on firm performance. A strong focus on prioritizing the enhancement of the human capital (HC) dimension of IC will increase the likelihood of attaining desired outcomes. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Causation and effectuation behaviour of Ethiopian entrepreneurs

2018 ◽  
Vol 25 (5) ◽  
pp. 791-817 ◽  
Author(s):  
Shiferaw Muleta Eyana ◽  
Enno Masurel ◽  
Leo J. Paas
Keyword(s):  
Firm Performance ◽  
Empirical Studies ◽  
African Countries ◽  
Data Set ◽  
Content Type ◽  
Entrepreneurial Behaviour ◽  
Tourism Sector ◽  
New Knowledge ◽  
African Context ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the implications of causation and effectuation behaviour of Ethiopian entrepreneurs on the eventual performance of their newly established small firms. It adds new knowledge and insights to advance the theory of effectuation by extending its scope into the domain of entrepreneurial behaviour and firm performance and by testing one of the operationalized scales in an African context. Design/methodology/approach This empirical research is conducted amongst Ethiopian tour operators (n=118) based on primary data from the field. The scales are based on Chandler et al. (2011), which are adapted to fit to the tourism sector and validated in an African context using a two-stage exploratory factor analysis (EFA). Hierarchical multiple regression is used to assess the ability of entrepreneurs’ behaviour (i.e. causation and effectuation) at the startup phase to predict the eventual performance of their newly established firms (self-reported changes in employment size, sales, profit and assets) over three years (January 2012-2015). Findings The findings reveal a varied effect of causation and effectuation on financial and non-financial measures. Causation is positively related to an increase in employment size, whereas the overall effect of effectuation is positively related to financial performance measures, although its dimensions vary in their effects on sales, profit and assets increase. The paper concludes that causation and effectuation have varied implications on firm performance. In other words, unlike the findings of other research in Western contexts, a strong empirical support is not found to claim that effectuation is superior to causation in outcomes such as firm performance in Ethiopian context. Research limitations/implications While this paper provides a new data set for entrepreneurship literature, its findings may lack generalisability. Not only it is industry specific (tourism sector), but also it is conducted in a single African country (Ethiopia). Despite its limitations, the paper adds new knowledge and insights for empirical studies in entrepreneurship field on the effects of entrepreneurs’ behaviour, such as causation and effectuation; on firm performance. Future research should focus on other economic sectors and in different African countries before making generalisations about the effect of causation and effectuation behaviour of African entrepreneurs on firm performance. Practical implications The findings of this paper can be used in other hospitality and tourism sectors like hotels and souvenir shops since tour operating business includes a broad range of service activities such as sightseeing, accommodation, transportation, recreational activities and shopping. Besides, these results have practical implications to prepare and provide business and management training tools to enhance entrepreneurial and managerial skills of owners of small tourism firms in Ethiopia. The findings of the study can also be applied in other African countries with similar culture and business environments to promote tourism development and success in Africa. Originality/value There have been hardly any empirical studies that are undertaken on the implications of entrepreneurial behaviour such as causation and effectuation on the performance of small tourism firms, particularly in an African context. The paper addresses this research gap in entrepreneurship literature in drawing on empirical evidence from small tourism firms (tour operators) in Ethiopia.

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

2018 ◽  
Vol 19 (5) ◽  
pp. 935-964 ◽  
Author(s):  
Neha Smriti ◽  
Niladri Das
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Creation ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Secondary Data ◽  
Share Price ◽  
Content Type ◽  
Listed Firms ◽  
The Impact

Purpose The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI). Design/methodology/approach Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance. Findings Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies. Practical implications This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources. Originality/value This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

scholarly journals The job demands-resources model and the international work context – a systematic review

2014 ◽  
Vol 2 (3) ◽  
pp. 260-279 ◽  
Author(s):  
Lucy T.B. Rattrie ◽  
Markus G. Kittler
Keyword(s):  
Systematic Review ◽  
Empirical Studies ◽  
Domestic Work ◽  
Job Demands ◽  
Empirical Literature ◽  
Future Research ◽  
Content Type ◽  
International Work ◽  
Work Related ◽  
Work Contexts

Purpose – The purpose of this paper is to provide a synthesis and evaluation of literature surrounding the job demands-resources (JD-R) model (Demerouti et al., 2001) in the first decade since its inception, with particular emphasis on establishing an evidence-based universal application towards different national and international work contexts. Design/methodology/approach – The study uses a systematic review approach following the stages suggested by Tranfield et al. (2003). Based on empirical data from 62 studies, the authors systematically analyse the application of the JD-R model and queries whether it is applicable outside merely domestic work contexts. Findings – The authors find convincing support for the JD-R model in different national contexts. However, the authors also found an absence of studies employing the JD-R model in cross-national settings. None of the empirical studies in the sample had explicitly considered the international context of today’s work environment or had clearly associated JD-R research with the IHRM literature. Research limitations/implications – Based on the wide acceptance of the JD-R model in domestic work contexts and the increased interest in work-related outcomes such as burnout and engagement in the IHRM literature, the study identifies a gap and suggests future research applying the JD-R model to international work and global mobility contexts. Originality/value – This study is the first to systematically assess the application of the JD-R model in domestic and international work contexts based on a systematic review of empirical literature in the first decade since the inception of the model. The study identifies a lack of internationally focussed JD-R studies and invites further empirical research and theoretical extensions.

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