Intellectual capital efficiency and firm performance: evidence from an emerging knowledge-economy

2021 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Refa Akter ◽  
Swadip Bhattacharjee
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Knowledge Economy ◽  
Capital Efficiency

scholarly journals Intellectual Capital and Firm Performance across Pakistani Industries

2021 ◽  
Vol 11 (4) ◽  
pp. 56
Author(s):  
Muhammad Ahmad ◽  
Rohani Mohd Rus
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Service Industries ◽  
Financial Firms ◽  
Generalized Methods Of Moments ◽  
Capital Efficiency ◽  
And Performance ◽  
Methods Of Moments ◽  
The Relationship

This study sheds light on the differences in intellectual capital (IC) efficiencies across non-financial sectors in Pakistan and determines the relationship between IC and firm performance. The study used sample of 155 non-financial firms from the manufacturing and service industries of Pakistan for the period 2009-2018. This study contributes to IC research by applying modified value-added intellectual capital (MVAIC) model with relationship to firm performance (return on assets and Tobin’s Q) of Pakistani non-financial firms which was overlooked by the previous researchers. In addition, to deal with endogeneity, the dynamic panel generalized methods of moments regression is applied to test the relationship between IC and performance. Findings provide evidence that different sectors in non-financial industries manage IC components differently. IC increases both market-based performance and accounting-based performance of Pakistani firms. Among all IC components, human capital efficiency is an important determinant of firm performance. The implication can provide help managers and investors to understand the IC to increase the firm performance.

Intellectual capital and firm performance in emerging economies: the case of India

2016 ◽  
Vol 26 (3) ◽  
pp. 410-430 ◽  
Author(s):  
Santi Gopal Maji ◽  
Mitra Goswami
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Relative Importance ◽  
Content Type ◽  
Knowledge Based ◽  
Traditional Sector ◽  
Steel Sector ◽  
Capital Efficiency ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of intellectual capital (IC) on Indian traditional sector and compare the relative importance of IC on corporate performance of Indian knowledge-based sector (engineering sector) and traditional sector (steel sector). Design/methodology/approach Secondary data on 100 listed Indian firms, comprising of 44 firms from the engineering sector and 56 from the steel sector, are collected from “Capitaline Plus” Corporate database for a period of 14 years from 1999-2000 to 2012-2013. IC and its components are computed using Pulic’s value-added intellectual coefficient model and firm performance is measured by return on asset. Fixed effect regression model is used to investigate the hypothetical relationship between IC and firm performance. Further, quantile regression is used to check the robustness of the results. Findings The results indicate that IC efficiency and physical capital efficiency are positively and significantly associated with the firm performance for both the sectors. Regarding the components of IC, the coefficient of human capital efficiency is positive and significant, but the present effort fails to disentangle any significant influence of structural capital efficiency on firm performance. However, the results indicate that the influence of IC efficiency on firm performance is significantly greater in case of knowledge-based sector than that of traditional sector. Practical implications The findings of the study are useful for the decision makers, as the results indicate that the IC plays crucial role in value creation not only for knowledge-based firms but also for the firms belonging to the traditional manufacturing sector. Originality/value In the Indian context, this is the first study to examine the relative importance of IC in a knowledge-based sector and a traditional sector using appropriate methodology.

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.

scholarly journals Intellectual Capital Efficiency and Firm Performance of Technology, Telecommunication and Media Companies in Malaysia

2020 ◽  
Vol 4 (1) ◽  
pp. 133-145
Author(s):  
Ahmed Sharem
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Annual Reports ◽  
Economic Policies ◽  
Policy Makers ◽  
Return On Equity ◽  
Media Companies ◽  
Structural Capital ◽  
Capital Efficiency

The main purpose of this paper is to study the association between intellectual capital efficiency (ICe) and firm performance of companies in the Technology and Telecommunications & Media (TT&M) sectors on the Malaysian main and ACE markets. Data were collected from 37 companies’ annual reports for the year 2018. Value added intellectual coefficient (VAIC) and its components were measured using Pulic’s model, whereas firm performance focuses on profitability, proxied by return on asset (ROA) and return on equity (ROE). VAIC, human capital efficiency (HCe) and Capital employed efficiency (CEe) are associated with significantly higher ROA and ROE. However, Structural capital efficiency (SCe) is not significant with either ROA or ROE. These findings have useful implications to the TT&M companies as their managers may improve on the efficient usage of the relevant capitals in order to gain better firm performance. Moreover, the findings of this study could also be beneficial to policy makers as the financial success of TT&M companies would be in line with national economic policies.    

scholarly journals Boardroom female participation, intellectual capital efficiency and firm performance in developing countries

2020 ◽  
Vol 25 (50) ◽  
pp. 413-424
Author(s):  
Wakeel Atanda Isola ◽  
Bosede Ngozi Adeleye ◽  
Aminat Olayinka Olohunlana
Keyword(s):  
Firm Performance ◽  
Gender Equity ◽  
Intellectual Capital ◽  
Banking Sector ◽  
Random Effect ◽  
Research Work ◽  
Female Participation ◽  
Content Type ◽  
Capital Efficiency ◽  
And Gender

Purpose This paper aims to focus on the implications of female participation in the board on the management of intellectual capital for improved firm performance, particularly in the Nigerian-banking sector. It uses the resource dependency theory to ascertain the link between female board participation, intellectual capital and performances. Design/methodology/approach The paper adopted longitudinal panel analysis to analyze data obtained from the annual reports of selected listed commercial banks in Nigeria. The random effect regression was adopted as the method of analysis. The decision was informed by conducting the Hausman test. Findings The results revealed that female board participation has insignificant influence on bank performances, whereas intellectual capital efficiencies positively contribute to bank performances. However, significant influences were exhibited upon the interactions of female board participation and components of intellectual capital efficiency on bank performances. Research limitations/implications Because of the focus of the research work, which is centered on the banking sector of the Nigerian economy, the findings of the research may not be sufficiently suitable for other sectors of the country. This, however, leaves the coast for other researchers to extend research on intellectual capital and gender participation to other non-financial sectors and other countries. Practical implications The outcome implies that there is a need for increased female participation in the boardroom to harness optimal intellectual capital efficiencies for firm performance. It further confirmed that intellectual capital unlocks the hidden treasure of firms. Originality/value The paper identifies and fulfills a niche on the need to extend the frontier of knowledge on intellectual capital and gender equity.

scholarly journals The Impact of Intellectual Capital on Firm Performance of the Turkish Real Estate Companies Before and After the Crisis

2018 ◽  
Vol 14 (1) ◽  
pp. 29 ◽  
Author(s):  
Sedeaq Nassar
Keyword(s):  
Firm Performance ◽  
Real Estate ◽  
Intellectual Capital ◽  
Value Creation ◽  
Positive Impact ◽  
Value Added ◽  
Significant Relation ◽  
Capital Efficiency ◽  
The Impact ◽  
Positive Significant Relation

Purpose- The main purpose of this study is to find the impact of intellectual capital on firm performance of real estate companies listed in Borsa Istanbul, using data of 27 listed companies over the period 2004-2015. Value Added Intellectual Coefficient (VAIC) method is utilized as a measure of intellectual capital (IC). Methodology- An OLS regression is used to examine the impact of intellectual capital (VAIC); Human capital efficiency (HCE), Structural capital efficiency (SCE), and Capital employed efficiency (CEE) on market, productivity, and financial performance. Findings- The findings show that SCE consider as a key role of value creation in real estate companies where has a positive significant relation with MB, ROE, and EPS before the crisis and with ROA and ROE after the crisis. HCE show a positive significant relation with ROA and ROE before the crisis and a negative significant association with MBand ATO after the crisis. CEE show a negative significant impact on ATO after the crisis. VAIC shows a significant positive impact on ROA, ROE, and EPS before the crisis, while it has the same relation with ROE after the crisis. Conclusion- Although the good result of using intellectual capital for value creation, real estate Turkish companies still weakly depend on its intellectual capital.

scholarly journals Intellectual Capital Efficiency and Firm Performance in Malaysia: The Effect of Government Ownership

2017 ◽  
Vol 8 (Special Issue) ◽  
pp. 93-105 ◽  
Author(s):  
Nurul Syamimi Zulkifli ◽  
Zaleha Abdul Shukor ◽  
Mara Ridhuan Che Abdul Rahman
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Government Ownership ◽  
Capital Efficiency

Intellectual capital and firm performance: an extended VAIC model

2019 ◽  
Vol 20 (3) ◽  
pp. 406-425 ◽  
Author(s):  
Ayse Elvan Bayraktaroglu ◽  
Fethi Calisir ◽  
Murat Baskak
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Manufacturing Firms ◽  
Moderating Effect ◽  
Content Type ◽  
Structural Capital ◽  
Proposed Model ◽  
Capital Efficiency ◽  
The Relationship ◽  
Innovation Capital

Purpose The purpose of this paper is to propose an extended and modified value-added (VA) intellectual coefficient (VAIC) model, which includes intellectual capital (IC) components which were missing in the original VAIC approach. The proposed model has been used to explore the relationship between IC and firm performance for Turkish manufacturing firms on a more detailed level. Design/methodology/approach Multiple regression analysis has been employed to identify the IC components, which predict the performance of the firm and the moderating effect of some IC components on IC components–firm performance relationship. Data are required to calculate the IC components, and firm performance variables have been obtained from the financial reports of the Turkish manufacturing firms for the period 2003–2013. Findings According to the results for Turkish manufacturing sector innovation capital efficiency has a moderating effect on the relationship between structural capital efficiency (SCE) and profitability, meaning, depending on an increase in R&D expenses, the effect of SCE on profitability also increases. On the other hand, it has been found that innovation capital efficiency has a direct impact on firms’ productivity. The results also showed that IC efficiency components have a moderating role on the relationship between capital employed efficiency and profitability. Research limitations/implications There might be a time lag until the effect of R&D investments can be observed in firms’ performance. However, this lagged impact of innovation capital and also other IC components on future firm performance has not been investigated due to concerns related to sample size. Originality/value The proposed model differs from the original VAIC model in three ways: it, namely, includes two additional IC components, customer capital (CC) and innovation capital. It explores the moderating effect of innovation capital on structural capital–firm performance relationship and the moderating effect of IC components on employed capital–firm performance relationship. As the last difference, it proposes an alteration in the VA calculation due to newly added IC components, CC and innovation capital.

scholarly journals THE IMPACT OF INTELLECTUAL CAPITAL ON FIRM PERFORMANCE IN MALAYSIA

2019 ◽  
Vol 2 (1) ◽  
pp. 9-18 ◽  
Author(s):  
Ahmad Ibn Ibrahimy ◽  
Karthyainee Raman
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Intellectual Capital ◽  
Return On Assets ◽  
Structural Capital ◽  
Capital Efficiency ◽  
And Performance ◽  
Using Data ◽  
The Impact ◽  
The Relationship

The purpose of this study is to investigate the relationship between intellectual capital and performance of the companies listed in Bursa Malaysia. Using data drawn from 35 companies listed in Bursa Malaysia for the period of 2008 to 2017, regression model is constructed to examine the relationship between the components of intellectual capital, which are Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE) and Capital Employed Efficiency (CEE), and the performance of the companies measured using the variable Return on Assets (ROA). Data collected are analyzed using statistical software EViews and the outcome has been interpreted according to the statistical rule. As a result, the overall outcome can be concluded that Structural Capital Efficiency (SCE) and Capital Employed Efficiency (CEE) indicate positive relationship for influencing the performance of the companies listed in Bursa Malaysia. Additionally, Human Capital Efficiency (HCE) shows a negatively weak relationship with firm performance.

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