scholarly journals Intellectual Capital (IC) Determinants: Impact on Productivity of Islamic Banks

2017 ◽  
Vol 8 (3) ◽  
pp. 189 ◽  
Author(s):  
Muhammad Ridhwan Ab. Aziz ◽  
Ahmad Azwan Meor Hashim
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Value Added ◽  
Relational Capital ◽  
Islamic Banks ◽  
Internal Factors ◽  
Structural Capital ◽  
Errors Estimation ◽  
The Impact ◽  
Bank Risks

This research aimed to investigate the relationship between the Intellectual Capital (IC) efficiency empirically. It consisted of human capital, structural capital, capital employed, and relational capital with the impact on the productivity of Islamic banks in Malaysia. The Pulic’s Value-Added Intellectual Coefficient (VAIC) method with the extended and modified version introduced by former scholars was used to measure IC, whereas bank productivity was measured through Assets Turnover Ratio (ATO). Three internal factors that might have determinants effect on VAIC, namely bank size, bank risks, and leverage were further tested to find their relationship. Structural stability tests and dynamic regression models for panel data were also used for the data of 16 Islamic banks in Malaysia from 2009 to 2016. The panel-corrected standard errors estimation technique was used to estimate a panel regression model with bank productivity and VAIC as the dependent variables. The regression analysis suggests that Malaysian Islamic banks are depending heavily on the capital employed component of intellectual capital, followed by human capital, structural capital, and relational capital. The results also suggest that bank’s risks and leverage play a major role in determining intellectual capital. The findings may serve as a useful input for Islamic bankers to indicate whether the contribution of intellectual capital and its components needs further improvement which it has produced the best results, and internal factor might affect IC.

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

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.

scholarly journals The impact of the intellectual capital components on firm’s performance in emerging markets

2021 ◽  
Vol 11 (2) ◽  
pp. 8-17
Author(s):  
Noomen Chaabane
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Value Added ◽  
Multiple Linear Regression Analysis ◽  
Future Research ◽  
Structural Capital ◽  
Stock Market Performance ◽  
The Impact

The objective of this research is to review, analyse, and provide empirical evidence about the impact of the intellectual capital (IC) characteristics on the firm performance on listed 26 companies in Tunisian Stock Exchange for the years 2010–2019. 260 companies were taken as a sample of this research using the purposive sampling method. The efficiency of intellectual capital was measured using the value added intellectual coefficient (VAIC) method developed by Pulic (2000). The research method used was multiple linear regression analysis. Our empirical analysis substantiates the fundamental role of IC components in improving the financial and stock market performance of listed Tunisian companies. The results obtained on the human capital efficiency variable contribute to improving the market of Tunisian listed companies and confirm the role attributed to human capital in the knowledge economy and even the basic hypothesis of the VAIC method. Investors do not place any importance on the following variables: structural capital, human capital and the efficiency of structural capital during market valuation. Future research is suggested to use cross-country companies as the sample.

scholarly journals ISLAMIC BANK AND SHARIA BUSINESS UNIT IN INDONESIA: A COMPARISON ON INTELLECTUAL CAPITAL DISCLOSURE PRATICES

2018 ◽  
Vol 8 (1) ◽  
pp. 1
Author(s):  
Ihyaul Ulum ◽  
Ismi’ Nor Amdini ◽  
Setu Setyawan ◽  
Nafsiah Mohamed
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Annual Reports ◽  
Relational Capital ◽  
Islamic Banks ◽  
Business Unit ◽  
Islamic Bank ◽  
Business Units ◽  
Structural Capital ◽  
Main Components

This study aims to compare the intellectual capital disclosures (ICD) in annual reports between Islamic Banks and Sharia Business Unit in 2015. Intellectual capital (ICD) is divided into three main components namely; Human capital, Structural capital and relational capital.  The components used in this study is the ICD-In framework written by Ulum (2015) which consists of 36 items of intellectual capital. This study uses purposive sampling to determine the sample of Islamic bank and Sharia business units registered in Bank Indonesia in 2015, with a sample of 34 banks. The results indicate that there was a difference practices on intellectual capital disclosures of Islamic banks and Sharia business unit. Islamic banks disclosed on IC higher than Sharia business unit.

Intellectual capital and financial performance in social cooperative enterprises

2018 ◽  
Vol 19 (4) ◽  
pp. 712-731 ◽  
Author(s):  
Nick Bontis ◽  
Massimo Ciambotti ◽  
Federica Palazzi ◽  
Francesca Sgro
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Economic Performance ◽  
Value Added ◽  
Positive Association ◽  
Performance Outcomes ◽  
Relational Capital ◽  
Content Type ◽  
Structural Capital ◽  
Cooperative Enterprises

Purpose The purpose of this paper is to provide empirical evidence of the relationship between intellectual capital (IC) and economic performance, with focus on social cooperative enterprises (SCEs) that work in non-profit sectors. Design/methodology/approach A survey was developed and administered in Italy. A final sample of 151 SCEs participated in the study. Data were collected on IC measures, social enterprise activities and economic and mission-based performance outcomes. Findings Two hypotheses that proposed a positive association between IC sub-components (i.e. human capital, structural capital and relational capital) and the economic and mission-based performance of SCEs were tested. Findings highlight that human capital contributes to explain economic performance which is positively affected by the presence of graduate employees and value added per employee. However, economic performance is negatively affected by the yearly training per employee. In addition, human and relational capital contribute to explain mission-based performance which is positively affected by yearly training, the value added per employee and the quality of relationships with customers. However, mission-based performance is negatively affected by the relationships’ quality with the reference territorial community. Therefore, relational capital would seem to affect only mission-based performance, and human capital influences both dimensions of corporate performance. Structural capital does not affect social cooperatives’ performance. Practical implications Some of the results in this study are particular to this research setting. It is therefore important for senior leaders of SCEs to take the results of general IC literature with a grain of salt. Whereas most of the academic literature generally supports the positive relationship of all IC sub-components (i.e. human, structural and relational capital) with performance outcomes, this is not the case in this particular study. Originality/value This is the first empirical study that has examined the linkages between IC sub-components and performance outcomes in SCEs in Italy.

scholarly journals Green Intellectual Capital Factors Leading to Business Sustainability

2021 ◽  
Vol 277 ◽  
pp. 06009
Author(s):  
Kittisak Jermsittiparsert
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Three Dimensions ◽  
Environmental Concerns ◽  
Relational Capital ◽  
Organizational Sustainability ◽  
Business Sustainability ◽  
Structural Capital ◽  
The Impact ◽  
Three Components

Today the impact of green intellectual capital on organizational sustainability have to be studied because of rising environmental concerns. There are three components of the green intellectual capital (GIC) which include green relational capital (GRC), green human capital (GHC) and green structural capital (GSC). This study fundamentally related to GIC three dimensions and business sustainability. Data from 238 SMEs in Thailand were collected and analyzed through PLS-PM method. Findings discovered that GHC does not have any influence on sustainability, but GSC and GRC are significantly related with sustainability of businesses.

scholarly journals The Impact of Intellectual Capital on Firms’ Performance: Evidence from Saudi Arabia

2020 ◽  
Vol 9 (4) ◽  
pp. 44
Author(s):  
Afnan Alturiqi ◽  
Khamoussi Halioui
Keyword(s):  
Human Capital ◽  
Saudi Arabia ◽  
Intellectual Capital ◽  
Market Performance ◽  
Value Added ◽  
Positive Association ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact ◽  
The Relationship

The purpose of this study is to empirically investigate the relationship between intellectual capital (IC) measured by the value-added intellectual coefficient (VAIC) and firms’ performance (FP) in the Saudi context. Data are drawn from a sample of 25 Saudi firms listed on the Saudi Stock Exchange (Tadawul) for the period 2015-2018. Using the VAIC model, the multiple linear regression models were constructed to examine the relationship between intellectual capital (IC) and firms’ performance (measured in terms of financial and market performance). The findings indicate that there is a positive association between overall intellectual capital efficiency as well as each of its three components (human capital efficiency, structural capital efficiency, capital employed efficiency) and the firms’ financial performance. Additionally, there is a positive association between human capital efficiency(HCE), structural capital efficiency (SCE), and the firms’ market performance. Overall, the findings suggest that human capital efficiency (HCE) has a significant and positive impact on firms’ financial and market performance in Saudi Arabia. The VAIC method may be a useful tool for managers and investors in their decision process. This is the first study about the impact of intellectual capital on firms’ performance in four industry groups in Saudi Arabia using the VAIC model.

scholarly journals The Impact of Intellectual Capital on Financial Performance: A Study of Sri Lankan Financial Institution

2021 ◽  
Vol 04 (09) ◽  
Author(s):  
A. Nishanthini ◽  
Keyword(s):  
Human Capital ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Negative Impact ◽  
Financial Institution ◽  
Value Added ◽  
Sri Lankan ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact

Intellectual Capital is essential in every economical activity. The aim of this study how intellectual capital impact on financial performance in Sri Lankan financial institution. To achieve objective of this research banking institution has been selected from Colombo Stock Exchange financial directory for the period from 2016 to 2020. Random sampling technique were used to analysis the data. MVIAC model used for the measurement of independent variable in this study. This model is a composite sum of two indicators these are Capital Employed Efficiency (CEE) - indicator of VA efficiency of capital employed and Intellectual Capital Efficiency (ICE) – indicator of value-added efficiency ofcompany’s Intellectual Capital base. Intellectual Capital Efficiency is composed of (a) Human Capital Efficiency (HCE) – indicator of value-added efficiency of human capital; and (b) Structural Capital Efficiency (SCE) – indicator of value-added efficiency of structural capital (c) Rational Capital Efficiency (RCE). Finding represent that intellectual capital has significant impact on financial performance of Sri Lankan financial institution, specially banking industry. SCE and CEE has negative impact while RCE impact positively on financial performance.

scholarly journals Impact of Intellectual Capital Management and Human Capital Circulation on Business Practice at Macro- and Micro Level

2017 ◽  
Vol 9 (5) ◽  
pp. 6-16 ◽  
Author(s):  
Iryna Oleynikova ◽  
Zhanna Balabaniuk
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Financial Analysis ◽  
Economic Value ◽  
Weighted Average ◽  
Value Added ◽  
General Acceptance ◽  
Managerial Implications ◽  
Standard Practices ◽  
The Impact

Nowadays the main potential for growth comes from the ability to innovate and succeed with breakthrough ideas. However, despite growing importance of the subject matter, there are still no standard practices that would perform such a measurement and employ tendencies of human capital circulation. Various attempts have been made over recent years, but none have achieved general acceptance among experts in the business field. Although there is no universally accepted theory, each has its own strengths and weaknesses in the deriving approximate value of intellectual capital for various companies. In this work, we looked over some theories that have been suggested to estimate intellectual capital and analyzed data from Ukrainian IT companies in order to prove how important measurement of intellectual capital and human capital circulation trends to allow for much better representation of an organization’s competitive position. Additionally, the impact of intellectual capital on various Key Performance Indicators, such as Economic Value Added and Weighted Average Cost of Capital, was examined with supporting financial analysis performed. The paper concludes with an overview of methodological and managerial implications of the research, theoretical and practical limitations and possible improvements, and considerations for further research in the field of study.

scholarly journals The Role of Green Intellectual Capital on Competitive Advantage: Evidence from Balinese Financial Institution

2019 ◽  
Vol 3 (3) ◽  
pp. 227
Author(s):  
Anak Agung Putu Gede Bagus Arie Susandya ◽  
Putu Diah Kumalasari ◽  
Ida Ayu Ratih Manuari
Keyword(s):  
Human Capital ◽  
Competitive Advantage ◽  
Intellectual Capital ◽  
Financial Institution ◽  
Critical Factor ◽  
Research Field ◽  
Relational Capital ◽  
Innovation Research ◽  
Structural Capital

The purpose of this study is to analyze the role of green intellectual capital on competitive advantage of Lembaga Perkreditan Desa (Balinese Financial Institution). The study tested by using data collected from a sample of 120 respondents that were randomly picked from 35 Lembaga Perkreditan Desa in Denpasar. Findings suggested that green human capital, green relational capital, and green structural capital affect competitive advantage at 17.6%. Furthermore, green human capital and green structural capital had positive effect on competitive advantage. Meanwhile, green relational capital did not affect competitive advantage. The eco-friendly concept remains a critical factor to gain company’s competitive advantage. This study provides insight into green innovation research field.

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