The drivers of profitability in the top 30 major airlines worldwide

2016 ◽  
Vol 20 (2) ◽  
pp. 26-37 ◽  
Author(s):  
Ilídio Tomás Lopes ◽  
Duarte Pitta Ferraz ◽  
Ana Maria Gomes Rodrigues
Keyword(s):  
Intellectual Capital ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Content Type ◽  
Structural Capital ◽  
Test Of Hypotheses ◽  
Major Airlines ◽  
Capital Ownership ◽  
And Control ◽  
The Impact

Purpose The purpose of this study is to identify the impact of human and structural capital on profitability of major airlines and examine whether region, capital ownership and control and strategic alliance play a clustering effect on profitability. Design/methodology/approach Using information from the top 30 airlines worldwide, in particular human and structural capital proxies, a linear model is regressed. Test of hypotheses were performed towards the identification of the influence emerged from variables, such as region, capital ownership and control and strategic alliances, on intellectual capital drivers and profitability. Findings Turnover is driven by human and structural capital factors, namely: employee expenses and benefits; size of board of directors; intangible assets; codeshare agreements; and passenger traffic. Airlines profitability does not depend on region, capital ownership and control or strategic alliance in which the company is integrated. Research limitations/implications In spite of the limitations, we underline the range of time under analysis and the sample size. However, the current approach can be replicated over time and based in other rankings, structured on different metrics and approaches. Practical implications The empirical results provide both an understanding of how independent variables positively affect the performance of airlines and offer some explanation as to the relationship between key characteristics of firms and profitability. Originality/value The research adds value to the current literature by exploring the effects of new intellectual capital drivers on profitability of airlines firms. Focused on a sector that strongly contributes to improve the networking between nations, it provides a new and updated overview.

Measuring intellectual capital in a firm belonging to a strategic alliance

2015 ◽  
Vol 16 (1) ◽  
pp. 174-198 ◽  
Author(s):  
Stefania Veltri ◽  
Andrea Venturelli ◽  
Giovanni Mastroleo
Keyword(s):  
Decision Making ◽  
Expert System ◽  
Intellectual Capital ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Empirical Work ◽  
Organizational Level ◽  
Decision Making Process ◽  
Content Type ◽  
Scant Attention

Purpose – The purpose of this paper is to propose a method to measure intellectual capital (IC) in firms involved in strategic alliances, an area that has received scant attention in the literature, as existing research is focused mainly on organizational level mainly and increasingly on macro-level unit such as regions or nations. There are very few works at the meso-level (i.e. alliances, clusters), and the paper aims to fill this void, by providing researchers and practitioners with a tool capable of combining measurement and management aims, developed at organizational level with the active participation of the researchers. Design/methodology/approach – The method of analysis is based on a model formalized through a fuzzy expert system (FES). The FES are able to merge the capabilities of an expert system to simulate the decision-making process with the vagueness typical of human reasoning, maintaining the ability to still have a numeric value as a response. Its construction requires the participation of experts, whose knowledge of the problem is accumulated in the form of blocks of rules. These features make it possible to formalize the decision-making process related to the IC valuation, handling qualitative and quantitative variables, and exploring the cognitive mechanisms underlying this process. Findings – The outcome of the application is a system designed to measure the intangible performance deriving from participation in a strategic alliance using FES. This study contributes to the broadening of the research community’s understanding regarding the alternative measurement of IC created within strategic alliances. Research limitations/implications – To the best of the authors’ knowledge, IC literature lacks methods expressly designed to measure the incremental value of IC originating from collaboration among firms. From a measurement perspective, the results may be regarded as valuable proof that IC performance within strategic alliances can be measured quantitatively. Practical implications – On the management side, the possibility of retracing the determinants of different IC intermediate indicators composing the final IC index allows strategic alliances managers to use this information for decision-making purposes. Originality/value – To the best of the authors’ knowledge this is the first study applying FES to measure IC in a firm belonging to a strategic alliance. In the authors’ opinion, fuzzy logic methodology, recently applied in empirical work designed to evaluate IC, represents a reliable methodology because of the “fuzzy” nature of IC.

Intellectual capital and supply chain resilience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Shujaat Mubarik ◽  
Nick Bontis ◽  
Mobasher Mubarik ◽  
Tarique Mahmood
Keyword(s):  
Supply Chain ◽  
Least Squares ◽  
Partial Least Squares ◽  
Intellectual Capital ◽  
Structural Equation ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Structural Capital ◽  
The Impact

PurposeThe main objective of this study is to test whether firms with a higher level of intellectual capital (IC) perform better in terms of their supply chain resilience compared to those with lower levels of IC. Likewise, the study also examines the impact of IC (characterized by human capital, relational capital and structural capital) on supply chain resilience directly and through supply chain learning.Design/methodology/approachData were collected from the 159 processed-food sector firms using a close-ended questionnaire during the corona virus 2019 (COVID-19) pandemic. Partial least squares structural equation modelling (PLS-SEM), partial least squares multigroup analysis (PLS-MGA) and one-way analysis of variance (ANOVA) were used to test a set of hypotheses emanating from a conceptual model of IC and supply chain resilience.FindingsEmpirical results revealed a significant influence of all dimension of IC on a firm's supply chain learning and supply chain resilience. Likewise, findings also exhibit a momentous role of supply chain learning in reinforcing the impact of IC on supply chain resilience. Cross-firm size comparison reveals that supply chain resilience of firms with a higher level of IC performed significantly better than those with lower levels of IC. Firms with a higher level of structural capital had a highly resilient supply chain.Practical implicationsFindings of the study imply that IC and supply chain learning should be considered as a strategic tool and should be strategically developed for uplifting a supply chain performance of a firm. The development of IC and supply chain learning (SCL) not only improves the supply chain resilience of a firm but also can help to integrate the internal and external knowledge for harnessing supply chain resilience.Originality/valueThis research study was conducted during the COVID-19 pandemic which provides a unique setting to examine resiliency and learning.

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 influence of behavioural and organisational characteristics on the success of international strategic alliances

2004 ◽  
Vol 21 (1) ◽  
pp. 17-52 ◽  
Author(s):  
Saleema Kauser ◽  
Vivienne Shaw
Keyword(s):  
Strategic Alliances ◽  
Strategic Alliance ◽  
Current Trend ◽  
Business Strategies ◽  
Control Mechanisms ◽  
Alliance Performance ◽  
Behavioural Characteristics ◽  
International Strategic Alliances ◽  
And Control ◽  
The Impact

With the current trend toward globalisation and the increasing competitive and technological challenges of today's environment the formation of international strategic alliances has become an important part of many firm's international business strategies. Experience with international strategic alliances has shown that they face a number of problems, which can often result in the termination of the alliance. This study, therefore, aims to assess the impact of both behavioural and organisational characteristics on the success of international strategic alliances. The results show that behavioural characteristics play a more significant role in explaining overall alliance performance compared to organisational characteristics. High levels of commitment, trust, coordination, interdependence and communication are found to be good predictors of international strategic alliance success. Conflict, meanwhile, is found to hamper good performance. By contrast organisational characteristics such as structure and control mechanisms are found not to strongly influence the success of international strategic alliances.

The effect of intellectual capital on fraud in financial statements

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Afsaneh Lotfi ◽  
Mahdi Salehi ◽  
Mahmoud Lari Dashtbayaz
Keyword(s):  
Logistic Regression ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Synthetic Data ◽  
Financial Statements ◽  
Content Type ◽  
Listed Firms ◽  
Structural Capital ◽  
Customer Capital ◽  
The Impact

PurposeThe purpose of this present study is to assess the impact of intellectual capital (IC) on fraud in listed firms' financial statements on the Tehran Stock Exchange (TSE). In other words, this paper seeks to figure out whether IC and its components, namely, the efficiency of human capital (HC), structural capital (SC), relational capital (RC) and customer capital (CC).Design/methodology/approachThe logistic regression model is used for analyzing the material of this study. Research hypotheses are also examined using a sample of 187 listed firms on the TSE during 2011–2018 by employing the logistic regression pattern based on synthetic data technique. Moreover, some robustness checks are also used to ensure the correctness of the obtained results.FindingsThe findings show a negative and significant relationship between IC and its components, including the efficiency of HC, SC, RC and CC, and fraud in financial statements. This means that by investing in the IC and its components, the amount of fraud in business firms' financial statements decreases.Originality/valueSince few studies are carried out by existing literature, this paper is among the pioneer efforts assessing IC's potential impact on fraud commitment. The findings apply to policymakers to improve the clarity of the business atmosphere of Iran.

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.

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.

4.0 digital transition and human capital: evidence from the Italian Fintech market

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Filomena Izzo ◽  
Viktoriia Tomnyuk ◽  
Rosaria Lombardo
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Regression Models ◽  
Principal Component ◽  
Critical Factor ◽  
Future Research ◽  
Content Type ◽  
Digital Era ◽  
Structural Capital ◽  
The Impact

PurposeIn the intellectual capital literature, no studies have examined the causal relationship between Italian Fintech companies' performance and intellectual capital, especially the impact of digital industrialization on human capital. This paper aims to fill this gap in measuring human capital efficiency in the Italian Fintech market.Design/methodology/approachThe authors adopt Pulic's model and define the intellectual capital through three components (human capital, structural capital and capital employed) and perform an exploratory analysis of the Italian Fintech companies by using principal component analysis. Then the authors investigate the effects of the intellectual capital and its components on the Italian Fintech companies' performance by using parametric and nonparametric regression models.FindingsResults of regression models reveal that human capital and employed capital are positively related to the companies' performance, except for the structural capital.Research limitations/implicationsThe study focuses on the Italian level, and future research could be extended to different European countries or to the global Fintech market. Moreover, it is advised to explore more components that contribute to intellectual capital measurement inside the companies operating in the 4.0 industrial revolution, such as the innovative capital and the relational capital.Practical implicationsThis study proposes a new vision for managerial procedures to find which features are critical for achieving profitability in this digital era. The study offers interesting reflections on the management decisions for both companies and public decision-makers. Results suggest that, among intellectual capital components, human capital plays a strategic role for the knowledge-intensive companies that are interested in potentiating their performance and competitiveness. Furthermore, this study finds that human capital is critical factor for achieving profitability in this digital era.Social implicationsThe Fintech sector is one that most benefited from the Digital Revolution, and if it is adequately managed, it can bring great benefits in terms of major employment, especially for the young population, and bring major financial inclusiveness all over the world.Originality/valueThis is the first study that examines the Italian Fintech market and analyzes the dependence relationship between companies' performance and intellectual capital components, identifying the role of human capital in a new completely digital sector. The analysis findings are strategic for the business decisions-making process.

How cultural distance affects the formation of international strategic alliance – an explanation of the transaction costs theory

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ming Ning Xiong ◽  
Tao Wang ◽  
Peng Zhao
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Strategic Alliances ◽  
Strategic Alliance ◽  
Cultural Distance ◽  
Transaction Cost Theory ◽  
Alliance Formation ◽  
Content Type ◽  
Underlying Mechanisms ◽  
The Impact

Purpose Based on the transaction cost theory, this paper aims to investigate the impact of cultural distance on international strategic alliance formation and its underlying mechanisms. Design/methodology/approach This paper uses the investment of foreign firms in the Chinese Venture Capital market as an empirical background, Obtaining VC data from Zero2IPO Private Equity, CVsource Investment Database (2001–2015). This paper chooses the Logit regression method, according to Lind’s three-step method to test the inverted U-shaped relationship. Findings The empirical analysis of foreign venture capital firms invested in China revealed that there is an inverted U-shaped relationship between cultural distance and the possibility of international strategic alliances. This relationship is the result of two opposing mechanisms, which are the need and the feasibility of international strategic alliances. In addition, this study further examined the moderating effects of social embeddedness and social reputation, revealing the boundary effects on the complex relationship between cultural distance and possible international strategic alliance formation. Originality/value This study focuses on cultural difference, which is a key factor leading to a firm’s transaction costs. Based on the transaction cost theory, this paper investigates the impact of cultural distance on international strategic alliance formation and its underlying mechanisms.

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