scholarly journals Intellectual capital and its impact on business performance: An empirical study of Portuguese hospitality and tourism sector

2020 ◽  
Vol 16 (2) ◽  
pp. 78
Author(s):  
Vânia Costa ◽  
Lurdes Silva ◽  
Loureiro Paula
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Business Performance ◽  
Sustainable Growth ◽  
Efficiency Coefficient ◽  
Structural Capital ◽  
Tourism Sector ◽  
Capital Efficiency ◽  
Hospitality And Tourism ◽  
The Relationship

Purpose: The propose of this study is to determine the influence of Intellectual Capital (IC) and its components’ impact on Portuguese tourism organizations’ business performance through Return on the assets (ROA). This work evaluate and compare the intellectual capital in its four dimensions: (i) capital employed; (ii) human capital; (iii) structural capital and (iv) relational capital.  Design/methodology/approach: To approach the aim of the study the method Value Added Intellectual Coefficient (VAICTM) was applied and the practical data were collected from the Simplified Business Information (IES) through SABI (Iberian Balance Sheet Analysis System) database. The economic and financial information was collected from balance sheets and financial reports of 46.951 Portuguese companies in the hospitality and tourism sector during 2016. Multiple regression analysis was employed to identify the effect of IC components’ that significantly contribute to the company performance.Findings: The paper reveals that VAICTM, human capital efficiency coefficient (HCE), capital employed efficiency coefficient (CEE).and ROA are positively related among Portuguese’s hospitality and tourism sector. However, the structural capital efficiency coefficient (SCE) presents a negative association with profitability and the results of the relationship between the variable relational efficiency coefficient (RCE) and ROA do not present statistical significance.Practical implications: The application of the VAICTM model presented in this paper provides a basis for practical application for management.Originality/value: The paper represents a pioneering attempt to understand the relationship of intellectual capital and firm’s profitability on Portuguese hospitality and tourism sector’s, to provide solid recommendations for the importance of intellectual capital in the sustainable growth of organizations in this sector.

Intellectual Capital and Business Performance of Pharmaceutical Firms in Kenya

2019 ◽  
pp. 851-873
Author(s):  
James Mark Ngari
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Business Performance ◽  
Strong Support ◽  
Relational Capital ◽  
Fit Indices ◽  
Empirical Results ◽  
Pharmaceutical Firms ◽  
Structural Capital ◽  
The Relationship

Intellectual capital is an investment in the organization and it is perceived to be a strategic resource and a source of competitive advantage. The purpose of this chapter is to test the relationship between intellectual capital and business performance of pharmaceutical firms in Kenya. The specific objectives are to determine whether human capital, structural capital and relational capital influence business performance of pharmaceutical firms in Kenya. The results indicate that human capital, structural capital and relational capital influence business performance of pharmaceutical firms in Kenya. Human capital and structural capital relationship strongly exist among the studied pharmaceutical firms and significantly influenced business performance positively. In addition, the study confirmed that human capital, structural capital and relational capital are dimensions of intellectual capital. The developed model confirm that the theory fitted data with fit indices above or below the required thresholds and the empirical results provided strong support for the model.

Intellectual Capital and Business Performance of Pharmaceutical Firms in Kenya

2017 ◽  
pp. 188-209
Author(s):  
James Mark Ngari
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Business Performance ◽  
Strong Support ◽  
Relational Capital ◽  
Fit Indices ◽  
Empirical Results ◽  
Pharmaceutical Firms ◽  
Structural Capital ◽  
The Relationship

Intellectual capital is an investment in the organization and it is perceived to be a strategic resource and a source of competitive advantage. The purpose of this chapter is to test the relationship between intellectual capital and business performance of pharmaceutical firms in Kenya. The specific objectives are to determine whether human capital, structural capital and relational capital influence business performance of pharmaceutical firms in Kenya. The results indicate that human capital, structural capital and relational capital influence business performance of pharmaceutical firms in Kenya. Human capital and structural capital relationship strongly exist among the studied pharmaceutical firms and significantly influenced business performance positively. In addition, the study confirmed that human capital, structural capital and relational capital are dimensions of intellectual capital. The developed model confirm that the theory fitted data with fit indices above or below the required thresholds and the empirical results provided strong support for the model.

scholarly journals Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan

2019 ◽  
Vol 11 (23) ◽  
pp. 6582 ◽  
Author(s):  
Xu ◽  
Haris ◽  
Yao
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Value Added ◽  
Bank Performance ◽  
Bank Profitability ◽  
Structural Capital ◽  
Chinese Banks ◽  
Capital Efficiency ◽  
The Relationship

The purpose of this study is to determine and compare the relationship between intellectual capital (IC) and banks’ performance in China and Pakistan. The data are acquired from listed banks in these two countries during 2010–2018. The Value Added Intellectual Coefficient (VAIC™) method is applied as a measure of IC. The results show that capital employed efficiency (CEE) makes the highest contribution to bank performance in both countries. In addition, the profitability of listed Chinese banks is driven by structural capital efficiency (SCE), while human capital efficiency (HCE) positively affects bank profitability and productivity in Pakistan. In addition, we find that the lagged effect of IC has a positive impact on future bank profitability. This study supports greater investment in IC in order to further improve bank performance in emerging Asian markets.

Intellectual capital efficiency and organisational performance

2019 ◽  
Vol 20 (6) ◽  
pp. 784-806 ◽  
Author(s):  
Leena Afroz Mostofa Chowdhury ◽  
Tarek Rana ◽  
Mohammad Istiaq Azim
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Emerging Economy ◽  
Return On Assets ◽  
Content Type ◽  
Return On Equity ◽  
Structural Capital ◽  
Asset Turnover ◽  
Capital Efficiency ◽  
The Relationship

Purpose The purpose of this paper is to, the first of its kind, investigate the relationship between the intellectual capital efficiency and organisational performance of the pharmaceutical sector in Bangladesh, an emerging economy that enjoys Trade-Related Aspects of Intellectual Property Rights (TRIPS) relaxation. Design/methodology/approach The study used hand-picked data from annual reports for five years. The relationship between efficient use of intellectual capital and corporate performance was examined through the practical use of human capital, structural capital and capital employed. Multiple regressions were used to assess their impact on financial performance – specifically, return on assets, return on equity, asset turnover and market-to-book value. Findings Value-added intellectual coefficient components (i.e. human capital, structural capital and capital employed) significantly explained asset turnover and return on assets but failed to predict the return on equity outcome. Additionally, asset turnover was negatively influenced by structural capital and positively influenced by capital employed. The return on assets was mostly affected by variation in human capital. Intellectual capital did not predict market-to-book value or investment decisions. Practical implications This paper provides useful resources for evaluating the financial performance and value creation of companies in emerging economies that enjoy TRIPS exemptions; this research could also be extended using cross-industry comparisons. The findings have theoretical and practical implications, particularly for the pharmaceutical industry in emerging economy contexts, and for managers globally. Originality/value This study is among only a few that have reported on the relationship between intellectual capital efficiency and value creation in emerging economy contexts.

The relationship between intellectual capital and employees' productivity: evidence from the Gulf Cooperation Council

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amina Buallay ◽  
Ala’a Adden Abuhommous ◽  
Gagan Kukreja
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Value Added ◽  
Gulf Cooperation Council ◽  
Least Square ◽  
Content Type ◽  
Ordinary Least Square ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Relationship

PurposeThe purpose of this paper is to establish the relationship between intellectual capital (IC) and employees' productivity (EP) in the Gulf Cooperation Council (GCC) region.Design/methodology/approachThe value-added intellectual coefficient (VAIC) is used to measure IC performance in 198 firms listed in Saudi Arabia and Bahrain from 2012 to 2014. The pooled-corrected estimation technique is used to estimate a panel regression model with EP as the dependent variable. Firm size and sectors are controlled for in the regression analysis. The independent variable (IC) has been measured using human capital efficiency (HCE), structural capital efficiency and capital employed efficiency (CEE) in order to measure the value of IC.FindingsBased on the VAIC, the authors found that the values of IC investments are mostly generated from investments in human capital. The results of the panel-corrected ordinary least square indicate that VAIC and its individual components are positive and significantly related to variations in employees' productivity. HCE contributed the highest and CEE contributed lowest VAIC.Originality/valueThe originality of this paper is to show the importance of investment in the human capital as a key contributor of firm's performance. Hence, this study encourages firm's leaders and management in the GCC to invest and focus their management/leadership styles on human capital to achieve their goals. To the best of the knowledge of the coauthors, this is the first study which empirically examines the relationship between IC and EP in the GCC region.

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 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.

scholarly journals The position of intellectual capital among Saudi banks

2019 ◽  
pp. 11-21
Author(s):  
M. M. Sulphey ◽  
M. Naushad
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Business Performance ◽  
Banking Industry ◽  
Islamic Banks ◽  
Organizational Goals ◽  
Return On Equity ◽  
Structural Capital ◽  
Intellectual Assets ◽  
Capital Efficiency

All intangible assets and various human-centred and the intellectual property rights (IPR) of organizations are considered as Intellectual Capital (IC). It includes all nonmonetary and nonphysical resources that are fully or partially controlled by the organization and contribute to the organization`s value creation. Since conventional factors of production are increasingly being replaced by intellectual assets, IC is now being increasingly recognized as the most valuable resource, which can provide the required impetus to take on the competition. Through appropriate management of IC, it is possible to enhance the earning capability, sustain the value and help the achievement of organizational goals. Organisations that manage IC would acquire the required competitive advantage and superior business performance in the current volatile and uncertain market. This study was conducted to investigate the position of IC of Saudi banks. Empirical evidence exists to suggest that efficient utilization of IC can contribute towards the success of the banking industry. Objectives of the study included finding the value of IC of the Saudi banking industry and examine the performance of Islamic banks. Two regression models were used to achieve the objectives of the study. The models examined the relationships between Return on equity (ROE) and Return on total assets (ROA) and the aggregate measure of IC. It also examined the different components like Human capital efficiency (HCE), the Capital employed efficiency (CEE), and Structural capital efficiency (SCE). The present study has thus helped in presenting some interesting findings of the IC of Saudi banks. It was observed that Saudi banks are fairly efficient and has generated the required value from the component of Human capital (HC) than other capital elements. Drastic improvement was evident during recent years, reflecting the cues about the stability evident globally in the industry. Overall it can be concluded that Saudi banks, especially the Shariah-compliant ones, are efficient in generating value from its IC. A comparison between Saudi banks, as well as Islamic banks and those in other countries where banking operations are not done as per Shari’ah rules, is suggested as it is sure to bring in interesting results. Keywords: intellectual capital, structural capital, banking industry, Saudi Arabia.

scholarly journals IDENTIFIKASI BUSINESS PERFORMANCE UKM DENGAN SKEMA KLASIFIKASI INTELLECTUAL CAPITAL

2020 ◽  
Vol 4 (1) ◽  
pp. 17
Author(s):  
Iqbal Arraniri
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Business Performance ◽  
Positive Relationship ◽  
Relational Capital ◽  
Structural Capital ◽  
Main Components ◽  
Relationship Of ◽  
The Relationship ◽  
A Company

When a company tries to find a business performance formula that can become a new solution in order to maintain its survival, then it depends on how its ability to manage its assets. So this study aims to examine the relationship of three main components of Intellectual Capital and Business Performance from Bontis at al: Human Capital, Structural Capital, Relational Capital. Hypothesis testing is conducted on the positive relationship between Human Capital and Business Performance, the positive relationship between Structural Capital and Business Performance, the positive relationship between Relational Capital and Business Performance, and the positive relationship between Intellectual Capital (IC) and Business Performance. Data collection techniques using a questionnaire developed from IC sub-factors based on the Intellectal Capital Classification Scheme from Moon and Kym, given directly to respondents or managers / business owners with a sample of 30 companies, then the data collected was analyzed using the IBM 20.0 SPSS program. Positive inter-variable influences have been found accompanied by rejected hopothesis.

Intellectual Capital and Business Performance in University Spin-Off Companies

2013 ◽  
pp. 215-224 ◽  
Author(s):  
Anna Szopa
Keyword(s):  
Human Capital ◽  
New Product Development ◽  
Intellectual Capital ◽  
Business Performance ◽  
Corporate Development ◽  
Structural Capital ◽  
Start Up ◽  
Managerial Knowledge ◽  
Main Activity

University spin-off companies are under many competitive pressures that necessitate ongoing innovation and new product development. Technological and managerial knowledge endowed to spin-offs at start-up largely determine their potential for success, since exploiting this knowledge is their main activity. This chapter discusses the issue of university spin-off companies with particular emphasis on the role of intellectual capital, as the new engine of corporate development and one of the great clichés of recent years. In addition, the study also analyzes the relationships between intellectual capital and the company’s performance. It highlights how various types of intellectual capital (human capital, structural capital, relational capital) are strategically important for innovative start-up firms.

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