The impact of intellectual capital on SMEs’ performance in China

2019 ◽  
Vol 20 (4) ◽  
pp. 488-509 ◽  
Author(s):  
Jian Xu ◽  
Jingsuo Li
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Manufacturing Sector ◽  
Operating Efficiency ◽  
High Tech ◽  
Relational Capital ◽  
Content Type ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact

Purpose The purpose of this paper is to explore and compare the extent of intellectual capital (IC) and its four components in high-tech and non-high-tech small and medium-sized enterprises (SMEs) operating in China’s manufacturing sector, and to examine the relationship between IC and the performance of high-tech and non-high-tech SMEs. Design/methodology/approach The study uses the data of 116 high-tech SMEs and 380 non-high-tech SMEs listed on the Shenzhen stock exchanges during 2012–2016. The modified value added intellectual coefficient (MVAIC) model is used incorporating four components, namely, capital employed, human capital, structural capital and relational capital. Finally, multiple regression analysis is utilized to test the proposed research hypotheses. Findings The findings of this paper reveal that there is significant difference in MVAIC between high-tech and non-high-tech SMEs. The results further indicate a positive relationship between IC and financial performance of high-tech and non-high-tech SMEs. Specifically, IC is positively associated with firms’ earnings, profitability and operating efficiency. Additionally, capital employed efficiency, human capital efficiency and structural capital efficiency are found to be the most influential value drivers for the performance of two types of SMEs while relational capital efficiency possesses less importance. Practical implications This paper will provide a valuable framework for executives, managers and policy makers in managing IC within the Chinese context. Originality/value To the best knowledge of the authors, this is the first empirical study that has been conducted on high-tech and non-high-tech SMEs in the manufacturing sector in China.

Exploring the impact of intellectual capital on company reputation and performance

2018 ◽  
Vol 19 (5) ◽  
pp. 915-934 ◽  
Author(s):  
Gianluca Ginesti ◽  
Adele Caldarelli ◽  
Annamaria Zampella
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Corporate Reputation ◽  
Intangible Asset ◽  
Competition Authority ◽  
Data Set ◽  
Content Type ◽  
Capital Efficiency ◽  
And Performance ◽  
The Impact

Purpose The purpose of this paper is to analyse the impact of intellectual capital (IC) on the reputation and performance of Italian companies. Design/methodology/approach The paper exploits a unique data set of 452 non-listed companies that obtained a reputational assessment from the Italian Competition Authority (ICA). To test the hypotheses, this study implemented several regression analyses. Findings Results support the argument that human capital efficiency is a key driver of corporate reputation. Findings also reveal that companies, which obtained reputational rating under ICA scrutiny, show a positive relationship between IC elements and various measures of financial performance. Research limitations/implications The study focuses on a single country; it is not free from the imprecisions of Pulic’s VAIC model. Practical implications This paper recommends companies that are interested to achieve a robust reputation should consider the human capital as a strategic intangible asset. Second, the results suggest that companies with an ICA reputational rating are able to leverage their intangibles to potentiate performance and competitiveness. Originality/value This is the first empirical investigation on the contribution of IC in generating value for corporate reputation. Additionally, the study contributes to the literature on the link between IC and performance by examining a sample of firms not yet explored in prior research.

Intellectual capital and knowledge generation: an empirical study from Colombian public universities

2020 ◽  
Vol 21 (6) ◽  
pp. 1053-1084
Author(s):  
John Salinas-Ávila ◽  
René Abreu-Ledón ◽  
Johnny Tamayo-Arias
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Online Survey ◽  
Public Universities ◽  
Knowledge Generation ◽  
Equation Modeling ◽  
Relational Capital ◽  
Content Type ◽  
Structural Capital

PurposeThe purpose of this paper is to provide empirical evidence on the relationships between the dimensions of intellectual capital (IC) and the generation of knowledge in public universities.Design/methodology/approachAn online survey was developed and administered in Colombia. A total of 209 researchers participated in the study. Data were collected through IC measurements concerning the research mission of the universities. Scientific publications from the respondents and the citations received were taken as proxies for the generation of knowledge. To test the hypotheses, structural equation modeling was used.FindingsHypotheses proposing a positive association between the dimensions of IC, namely, human capital, structural capital, and relational capital, and the generation of knowledge were tested. The findings highlight that human capital is indirectly and positively related to the generation of knowledge through relational capital, as well as through the path of structural capital-relational capital.Practical implicationsThe study suggests that directors of research at universities could improve the results of this activity by analyzing and understanding the dimensions of IC that contribute to the development of scientific capacities and the generation of knowledge.Originality/valueThis is one of the first studies that has examined the interrelationships between the dimensions of IC at universities and the generation of knowledge.

The effects of self-reflection on individual intellectual capital

2020 ◽  
Vol 21 (6) ◽  
pp. 1107-1124
Author(s):  
Zhining Wang ◽  
Shaohan Cai ◽  
Mengli Liu ◽  
Dandan liu ◽  
Lijun Meng
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Equation Modeling ◽  
Relational Capital ◽  
Content Type ◽  
Self Reflection ◽  
Structural Capital ◽  
The Relationship ◽  
Individual Human ◽  
Three Components

PurposeThe aim of this paper is to develop a tool measuring individual intellectual capital (IIC) and investigate the relationship between self-reflection and IIC.Design/methodology/approachThis study developed a theoretical model based on social cognitive theory and the literature of self-reflection and intellectual capital (IC). This research collected responses from 502 dyads of employees and their direct supervisors in 150 firms in China, and the study tested the research model using structural equation modeling (SEM).FindingsThe results indicate that three components of self-reflection, namely, need for self-reflection, engagement in self-reflection and insight, significantly contribute to all the three components of IIC, such as individual human capital, individual structural capital and individual relational capital. The findings suggest that need for self-reflection is the weakest component to impact individual human capital and individual relationship capital, while insight is the one that mostly enhances individual structural capital.Practical implicationsThis paper suggests that managers can enhance employees' IIC by facilitating their self-reflection. Managers can develop appropriate strategies based on findings of this study, to achieve their specific goals.Originality/valueFirst, this study develops a tool for measuring IIC. Second, this study provides an enriched theoretical explanation on the relationship between self-reflection and IIC – by showing that the three subdimensions of self-reflection, such as need, engagement and insight, influence the three subdimensions of IIC, such as individual human capital, individual structural capital and individual relational capital.

Do banks accumulate a higher level of intellectual capital? Evidence from an emerging market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ngoc Phu Tran ◽  
Duc Hong Vo
Keyword(s):  
Intellectual Capital ◽  
Emerging Market ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Relational Capital ◽  
Content Type ◽  
Financial Firms ◽  
Structural Capital ◽  
Capital Efficiency ◽  
Nonfinancial Firms

PurposeIn developed countries, banks are perceived to accumulate a higher level of intellectual capital than firms in other sectors. However, this perception has not been considered or tested in the context of an emerging market such as Vietnam, which has one of the most dynamic economies in the Asian region. This study estimates and compares the level of accumulation of intellectual capital and its four components by financial and nonfinancial firms in Vietnam. Furthermore, this study examines the relationship between intellectual capital and its components and the performance of financial and nonfinancial firms.Design/methodology/approachThis study uses data collected from the annual reports of 75 financial and 75 nonfinancial firms in Vietnam from 2011 to 2018. A modified value-added intellectual coefficient model is adopted to measure the level of intellectual capital at firms. Various aspects of intellectual capital are considered, including the efficiency of human capital, structural capital, capital employed and relational capital. In addition, the generalized method of moments is used to ensure the robustness of the findings.FindingsFindings in this study indicate that financial firms in Vietnam have accumulated a higher level of intellectual capital than nonfinancial firms. In addition, intellectual capital contributes positively to financial firms' performance. Three components of intellectual capital – structural capital efficiency, capital employed efficiency and relational capital efficiency – positively affect performance by financial firms.Research limitations/implicationsThis study is limited to financial and nonfinancial firms in Vietnam. Empirical studies in the future should incorporate the efficiency aspects of these types of firms because different industries might have different characteristics, in particular, their current efficiency level, which might cause differences in relation to the accumulation of intellectual capital.Practical implicationsThe findings of this study provide valuable evidence and implications for executives and policymakers in creating, managing and enhancing intellectual capital within the Vietnamese context, in particular in the financial sector.Originality/valueTo the best of our knowledge, this is the first empirical study conducted in the context of Vietnam, with the following two objectives: (1) to measure and compare the level of accumulation of intellectual capital by financial and nonfinancial firms in Vietnam; and (2) to examine the contribution of intellectual capital and its components to the performance by financial and nonfinancial firms in Vietnam.

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.

Intellectual capital and environmental concern in subsistence small businesses

2017 ◽  
Vol 28 (2) ◽  
pp. 214-230 ◽  
Author(s):  
Carlos Maria Jardon ◽  
Amandio Dasilva
Keyword(s):  
Intellectual Capital ◽  
Small Businesses ◽  
Environmental Concern ◽  
Partial Least Square ◽  
Least Square ◽  
Relational Capital ◽  
Content Type ◽  
Sustained Development ◽  
Structural Capital ◽  
The Impact

Purpose Small businesses created as a subsistence activity (subsistence small businesses (SSBs)), often are oriented towards the short term. The environmental performance, by contrast, is an indicator of long-term strategies. The purpsoe of this paper is to analyse how intellectual capital (IC) dimensions affect environmental concern, preparing SSBs to have a proper environmental behaviour in the future. Design/methodology/approach A method based on the partial least square technique is suggested to select the model and estimate the parameters. A sample of 113 small businesses in the timber industry in a region of Argentina was selected for this study. Findings The results indicate that IC promotes environmental concern. Relational capital directly affects environmental concern, human capital and structural capital and these, in turn, indirectly affect the environmental concern through relational capital in SSBs. Research limitations/implications The sample used is a cross-section. IC is subjectively measured. This paper only studies small businesses in the timber sector in a region of Latin America. Practical implications This paper enables practitioners and scholars to understand and make legitimate decisions and conclusions that can foster SSB growth in environmental concern. The paper suggests a combination of strategies in order to achieve a sustained development. Originality/value The authors tested the impact of dimensions of IC on environmental concern in SSB of developing countries, showing the importance of IC in sustained strategies in these companies.

The Relationship between Intellectual Capital and Banks' Productivity in Pakistan

2021 ◽  
pp. 158-169
Author(s):  
Muhammad Asim Afridi ◽  
Imran Khan ◽  
Muddassar Khan
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Productivity Growth ◽  
Banking Sector ◽  
Value Added ◽  
Malmquist Productivity Index ◽  
Productivity Index ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact

The performance of banks has been widely researched using accounting ratios, Tobin�s Q and market returns and less emphasis has been given to productivity measures. The productivity growth of banks is captured through Malmquist Productivity Index (MPI). The study then investigates the impact of intellectual capital on the productivity of banks in Pakistan. Value-added The intellectual Coefficient (VAIC) approach is employed to examine the intellectual capital of banks. Data is obtained from annual reports of 20 banks listed on the Pakistan Stock Exchange for 10 years (2007-2016). The panel corrected standard error approach is used for estimating the panel regression model. The findings provide evidence that the VAIC, human capital efficiency (HCE) and structural capital efficiency (SCE) has a positive impact on productivity growth (MPI). On the other hand, capital employed efficiency (CEE) has no significant impact on productivity growth. The VAIC approach may be useful for the banks and policymakers in a knowledge economy to integrate the intellectual capital in the decision-making process. Our results also suggest that banks in Pakistan shall increase spending on intellectual capital particularly on human capital and structural capital to elevate the intellectual capital of banks and subsequently get benefits in terms of increased productivity Keywords: Intellectual capital; Value added intellectual coefficient (VAIC); Malmquist productivity Index; Pakistan banking sector

Intellectual capital for recovering patient centrality and ensuring patient satisfaction in healthcare sector

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fabio Fiano ◽  
Marco Sorrentino ◽  
Francesco Caputo ◽  
Margherita Smarra
Keyword(s):  
Human Capital ◽  
Patient Satisfaction ◽  
Intellectual Capital ◽  
Healthcare Management ◽  
Healthcare Sector ◽  
Primary Data ◽  
Relational Capital ◽  
Content Type ◽  
Structural Capital

PurposeWith the aim to enrich the ongoing debate about healthcare management, the paper has a twofold intent: [1] to emphasise the interpretative contribution that intellectual capital can provide to a better understanding of the relevant role of patients in the healthcare sector and [2] to investigate the relationships between the three main dimensions of intellectual capital – human capital, relational capital and structural capital – and patient satisfaction in the healthcare sector.Design/methodology/approachThe intellectual capital framework is contextualised in the healthcare sector, and the relationships among patient evaluations of human capital, relational capital and structural capital and patient satisfaction are tested via structural equation modelling (SEM) using primary data collected with reference to a sample of 561 Italian patients involved in post survey treatments in three Italian hospitals.FindingsThe role of intellectual capital in supporting a better understanding of processes and dynamics of patient satisfaction in the healthcare sector is underlined. The empirical research provides possible guidelines for recovery patients centrality in healthcare management.Originality/valueThe paper shows how an intellectual capital framework can support a better understanding and management of dynamics and processes through which patient centrality and satisfaction in healthcare management can be enforced.

Effect of intellectual capital disclosure on cost of equity capital: a study on Indian companies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amitava Mondal ◽  
Chiranjit Ghosh
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Research Work ◽  
Equity Capital ◽  
Negative Association ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Content Type ◽  
Structural Capital ◽  
The Impact

PurposeThe impact of the intellectual capital disclosure (ICD) on the cost of equity capital (COEC) is not well established in the aspect of the Indian scenario. So the objective of this paper is to examine not only the overall effect of ICD but also the individual effect of human capital disclosure (HCD), relational capital disclosure (RCD) and structural capital disclosure (SCD) on COEC.Design/methodology/approachThis research work is conducted by regressing COEC, firm size, leverage, industry type and disclosure index. The disclosure index is prepared based on content analysis of disclosure made in the annual reports of a sample of 50 companies listed in the Nifty 50 index for the year 2018–2019. But in this paper 20 companies are eliminated due to their negative COEC and rest 30 companies are used as the sample companies for this study.FindingsThe outcome of this study indicates a negative association between the disclosure of intellectual capital (IC) as a whole and the COEC. But a negative association only for two components (human capital and structural capital) with the COEC is found only when the association of COEC with the categories of ICD is considered.Originality/valueThis is the first study that examines the nexus between the level of ICD and its impact on the COEC in India context.

scholarly journals Managerial ability and intellectual capital disclosure

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Javad Rajabalizadeh ◽  
Javad Oradi
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Audit Committee ◽  
Negative Relationship ◽  
Relational Capital ◽  
Alternative Measure ◽  
Managerial Ability ◽  
Content Type ◽  
Structural Capital ◽  
The Relationship

PurposeWhile prior research in the area of intellectual capital (IC) disclosure has mainly focused on firm, board and audit committee characteristics, there is little research on whether managerial characteristics are associated with IC disclosure. This study aims to examine the relationship between managerial ability (MA) and the extent of IC disclosure.Design/methodology/approachThe study sample comprises 1,098 firm-year observations of Iranian listed firms during 2012–2017. This study uses the checklist developed by Li et al. (2008) and adopts a content analysis approach and calculates the IC disclosure index in 62 dimensions within three categories: human capital, structural capital and relational capital. To measure MA, this study uses the managerial ability score (MA-Score) developed by Demerjian et al. (2012) for Iranian firms.FindingsThe results show that MA is significantly and negatively associated with the overall extent of IC disclosure and all the three components of IC (human capital, structural capital and relational capital). Further analysis shows that the interaction between MA and firm performance is positive and significant, suggesting that the negative relationship between MA and IC disclosure is less pronounced for high-performing firms. This study addresses the potential endogeneity issue by using the propensity score matching approach. The findings are also robust to the alternative measure of MA.Originality/valueThis study contributes to both the MA literature and the IC disclosure literature. To the best of the authors' knowledge, this study is the first to provide empirical evidence on the relationship between MA and IC disclosure.

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