Intellectual Capital & Firm Performance: An Empirical Study on the Oil & Gas Sector of Pakistan

2014 ◽  
Vol 4 (1) ◽  
pp. 238 ◽  
Author(s):  
Mina Kharal ◽  
Muhammad Abrar ◽  
Muhammad Zia-ur-Rehman ◽  
Muhammad Sarfraz Khan ◽  
Maria Kharal
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Intangible Asset ◽  
Competitive Edge ◽  
Intellectual Capital Management ◽  
Conducting Research ◽  
Oil Gas

Knowledge has become power now a days and organization in the ever changing world now a day consider knowledge and intellect of tier employees as a competitive edge which enables such organizations to compete effectively in the marketplace. The literature in the domain of intellectual capital management has received considerable evidence as to whether the intellectual capital contributes towards the firm performance and value or not. This study extends the evidence in this regard by conducting research on Oil & Gas sector of Pakistan.Using VAIC model of intellectual capital measurement and ROA, ROE, EPS, Sales growth ad M/B ratio as proxies of internal and external performance of the company this study documents a positive impact of intellectual capital on the organizational performance and value in the Oil & Gas sector of Pakistan. Thus, intellectual capital could be considered an intangible asset and spending with regard to the development and establishment of intellectual capita should be considered asset with long term value. Recommendations and implications of the study are also provided in the end.

scholarly journals Organizational Learning and Motivation: Assessing the impact on Employee Performance

2016 ◽  
Vol 5 (2) ◽  
pp. 355 ◽  
Author(s):  
Puja Sareen ◽  
Parikshit Joshi
Keyword(s):  
Organizational Learning ◽  
Organizational Performance ◽  
Positive Impact ◽  
Employee Performance ◽  
Employee Motivation ◽  
Primary Data ◽  
Hygiene Factors ◽  
And Performance ◽  
The Impact

<em>Organizational learning has the potential to improve organizational performance. For any organization to sustain long term benefits it requires to establish a mechanism to tap the knowledge and use this knowledge in taking future decisions. This study tries to capture the role of Organizational Learning and Employee Motivation and its impact on the Employees’ Performance. The study is exploratory and descriptive in nature. The questionnaire used for primary data collection has its items collected and derived from various standardized questionnaires available. The analysis of the primary data shows that there is a positive correlation between Organizational Learning and Organizational Performance. On understanding Herzberg theory of motivation the study came to conclusion that employees consider hygiene factors of motivation more significant than the motivator factors. The motivation level of employees in an organization has positive impact on the overall performance of any organization. The study helps the organizations to understand the relationship between learning and performance considering motivation as a mediating variable. </em>

The effects of knowledge creation process on organizational performance using the BSC approach: the mediating role of intellectual capital

2018 ◽  
Vol 22 (4) ◽  
pp. 802-823 ◽  
Author(s):  
Gholamhossein Mehralian ◽  
Jamal A. Nazari ◽  
Peivand Ghasemzadeh
Keyword(s):  
Organizational Performance ◽  
Intellectual Capital ◽  
Knowledge Creation ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Success Factor ◽  
Content Type ◽  
Key Dimensions ◽  
The Relationship

PurposeKnowledge is a key success factor in achieving competitive advantage in the current fast-paced and uncertain economic environment. Several studies in the literature have analyzed the relationship between knowledge creation (KC) and organizational success; however, the mechanisms by which KC leads to accumulation of intellectual capital (IC) and thereby affects various dimensions of organizational performance are understudied. The purpose of this paper is to examine how KC and IC and their relationship influence key dimensions of organizational performance.Design/methodology/approachA research model was developed and tested based on the literature in the areas of KC, IC and organizational performance. This study uses a survey sent to companies in an intensive knowledge-based industry. The balanced scorecard (BSC) approach was used to measure the key dimensions of organizational performance.FindingsThe results from structural equation modeling (SEM) on 470 completed questionnaires received from the pharmaceutical companies in Iran reveal that KC activities lead to the accumulation of organizational IC and IC has a crucial and positive impact on the BSC. Furthermore, the results from the path analysis indicate that IC mediates the effects of KC on the BSC.Practical implicationsThe findings of this study contribute to the extant literature on the relationship between knowledge and organizational performance by demonstrating that knowledge and KC lead to performance when organizations utilize KC activities and leverage them to accumulate IC. Once used effectively, IC will result in a better performance in the knowledge-intensive environments.Originality/valueThis is the first study that investigates how KC contributes to firm performance by incorporating the mediating impact of IC on the BSC. The proposed model and results will help organizations to identify the mechanisms through which KC initiatives improve organizational performance.

scholarly journals Pengaruh Knowledge Management terhadap Performa Kinerja Organisasi: Studi Kasus pada PT Ericsson Indonesia

2012 ◽  
Vol 3 (1) ◽  
pp. 444
Author(s):  
Stephanus Stephanus
Keyword(s):  
Knowledge Management ◽  
Learning Environment ◽  
Human Resources ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Primary Determinant ◽  
And Performance ◽  
Or Organization ◽  
A Company

Human resources are the most important asset as the primary determinant of long-term corporate success. Therefore, any efforts to improve the effectiveness and performance of employees in a company or organization are also important factors in improving the the company's capacity of available Intellectual Capital. In addition, learning environment holds important implications for improving organizational performance in a company, especially when associated with knowledge Management that can be used as a learning enabler undertaken by their employees. This paper discusses the relationships between the learning environment and the increase of organizational performance associated with the company’s knowledge management.

scholarly journals Effects of intellectual capital on qualitative and quantitative performance: Evidence from Turkey

2015 ◽  
Vol 18 (2) ◽  
pp. 143-154 ◽  
Author(s):  
Gökan Özer ◽  
Ercan Ergun ◽  
Osman Yılmaz
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Reliability And Validity ◽  
Research Results ◽  
Qualitative And Quantitative ◽  
Quantitative Performance ◽  
Qualitative Performance ◽  
The Relationship ◽  
Research Studies

Intellectual capital is among the new, advanced management notions developed to overcome the inadequacy of previous administrations, to adapt to new situations and forge ahead of the competition. Intellectual capital means the information, experience and skills that offer advantage in competition and reveal the values existing within the structure of an enterprise. These values also exist in the relationship between  the enterprise and the environment  and  with the employees. Although some research studies on intellectual capital (IC) have been conducted, to date no research has been carried out on the effects of IC on qualitative and quantitative organizational performance. For this reason, IC and its effects on firm performance (both qualitative and quantitative) were evaluated in this study. Following the evaluation of the intellectual capital and its sub-elements, the differentiation of the sub-elements is made. Then the reliability and validity of these sub-factors are calculated. The intellectual capital model has been tested by the structural equality model (SEM).  According to research results, IC explains 92  per cent of a firm’s performance. The effect of IC on qualitative performance is 0,84, while on quantitative performance it is 0,72. RC impresses qualitative performance with coefficient 0,94, quantitative performance with coefficient 0,60; HC impresses qualitative performance with coefficient 0,92, quantitative performance with coefficient 0,54 less; SC impresses qualitative performance with coefficient 0,90, quantitative performance with coefficient 0,53. According to the results of the research, IC affects both the qualitative and the quantitative performance of firms by supplying extensive knowledge to the managers.

scholarly journals Intellectual capital and organizational ambidexterity in Chinese and Irish professional service firms

2016 ◽  
Vol 3 (2) ◽  
pp. 94-114 ◽  
Author(s):  
Na Fu ◽  
Qinhai Ma ◽  
Janine Bosak ◽  
Patrick Flood
Keyword(s):  
Firm Performance ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Professional Service ◽  
Service Firms ◽  
Organizational Ambidexterity ◽  
Professional Service Firms ◽  
Content Type ◽  
Internal Management ◽  
The Impact

Purpose – Organizational ambidexterity enables firm to simultaneously exploit existing resources and explore new resources. It is associated with high levels of organizational performance. The purpose of this paper is to identify key internal management resources which contribute to building organizational ambidexterity. In particular, this study examines the impact of intellectual capital, i.e. human, social, and organizational capital, on organizational ambidexterity which in turn influences firm performance. Design/methodology/approach – The research was conducted within the context of professional service firms due to the importance of intellectual capital and organizational ambidexterity. Data were collected from 112 Chinese (cross-sectional design) and 93 Irish accounting firms (time-lagged design). Findings – Results provide support for the linkage of intellectual capital to organizational ambidexterity and firm performance. Interestingly, findings are mixed regarding the impact of the three types of capital resources on organizational ambidexterity across both countries. Practical implications – This study finds that various components of intellectual capital facilitate organizational ambidexterity which in turn improves firm performance. Therefore the authors provide managers with evidential support for the salience of intellectual capital in enabling organizations to simultaneously engage in exploiting existing resources while also exploring new ideas and opportunities. Originality/value – This study is unique in that it highlights the importance of internal management resources in building up organization’s ambidexterity capability. The link between intellectual capital and organizational ambidexterity was established using a rigorous research design which has not been done before. It also emphasizes the role of people in leading to organizational effectiveness via developing organizational ambidexterity. Furthermore the evidence is gathered in two countries.

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 A Study on the Impacts of Intellectual Capitals on Organizational Performance: The Intellectual Property Office in Korea

2008 ◽  
Vol 22 (2) ◽  
pp. 89-108
Author(s):  
Jeon Byul ◽  
Moon Kwang Min ◽  
Jeong Youn Baek ◽  
Sohn Ho Sung
Keyword(s):  
Human Capital ◽  
Knowledge Management ◽  
Intellectual Property ◽  
Organizational Performance ◽  
Empirical Research ◽  
Intellectual Capital ◽  
Relational Capital ◽  
Structural Capital ◽  
Intellectual Capital Management ◽  
Operational Methods

This study analyzes the impacts of the intellectual capitals of the Korea Intellectual Property Office (KIPO) on organizational performance. In particular, the following have been analyzed: how KIPO's human capital, structural capital, and relational capital affect the activities of the organization's knowledge management; to what degree the levels of knowledge management activities affect the organization's performance; and to what extent the organization's performance varies in accordance with KIPO's intellectual capital levels. This study conducted empirical research and analysis of how the intellectual capitals that KIPO possesses activate knowledge management activities, and which intellectual capitals influence knowledge management and organizational performance. Furthermore, it derived strategic suggestions that can be used for making successful policy on intellectual capital management. The results of the study revealed that in order to enhance organizational performance, KIPO needs to make efforts to promote cognition on the importance of intellectual capitals that it holds, and adopt operational methods to raise the level of relational capitals.

scholarly journals Business reputation of the company as one of the most important components of the company's success

2021 ◽  
pp. 29-32
Author(s):  
Hanna KOVALOVA ◽  
Adil Mohamed Abdalla Sultan AL ALI ◽  
Viktor ZAMLYNSKYI
Keyword(s):  
Business Processes ◽  
Positive Impact ◽  
Reputation Management ◽  
Intangible Asset ◽  
Noticeable Effect ◽  
Business Plans ◽  
Good Reputation ◽  
Corporate Business ◽  
A Company

The paper examines the company's business reputation in detail as one of the most important components of a company's success. Currently, there is no doubt that goodwill is the most important intangible asset of the enterprise, despite the fact that it differs significantly from other intangible assets in its content, methods of acquisition or disposal, valuation methods. The paper presents an analysis of the issue of business reputation and shows its relevance, reveals such concepts as “reputation”, “business reputation”, methods of management and evaluation of business reputation of the company. Today, the problem of reputation management is experiencing a real peak of its relevance. “Reputation – a valuable intangible asset of the company, which accumulates over the years and can be destroyed immediately” – this phrase in one variation or another is constantly heard at conferences, flashes on the pages of business publications, appears in corporate business plans. Experts agree that a good reputation makes a company more attractive to investors, increases its capitalization, increases income, provides a stronger position in entering new markets and supports the general population. Obviously, to achieve a noticeable effect, any actions to manage business reputation, taken by the organization, must be long-term and systematic, be integrated into key business processes. Researchers publish research results that prove the positive impact of reputation on other parameters of the business model. There is no doubt that reputation must be managed. Therefore, this is exactly what was described in detail in the paper.

scholarly journals Investment Priorities and the Innovation of Enterprises in Poland

2013 ◽  
Vol 4 (1) ◽  
pp. 65-77 ◽  
Author(s):  
Anna Wildowicz-Giegel
Keyword(s):  
Intellectual Capital ◽  
Point Of View ◽  
Intangible Capital ◽  
Investment Activity ◽  
Developmental Needs ◽  
Competitive Edge ◽  
Modern Economy ◽  
Important Barrier ◽  
Polish Economy

The feature of contemporary enterprises is an aspiration of achieving the competitive edge thanks to investments in the knowledge and innovation. Apart from investment in tangible capital, more and more enterprises undertake many initiatives directed at the development of the intellectual capital. It gives them the chance both to the maintenance, as well as the improvement in the competitive position in the long-term prospect. Unfortunately, many enterprises in Poland still seem not to appreciate the significance of investment in intangible capital. Irrespective of the structure of investment, it should be stated simultaneously, that the investment activity of these entities relating to UE-27 countries is not only low, but what is worse insufficient from a point of view of developmental needs of the Polish economy. The purpose of the study is to present investment activity of enterprises in Poland, with paying special attention to the value and the structure of investment in tangible and intangible capital, as well as their influence on the innovativeness of this sector. Undertaken issues are unusually important, especially in the context of the low innovativeness of enterprises in Poland, being an important barrier in the process of building a modern economy, for which the knowledge and innovation constitute the driving force.

Intellectual capital and firm performance

2020 ◽  
Vol 36 (6) ◽  
pp. 37-39
Keyword(s):  
Human Capital ◽  
Firm Performance ◽  
Intellectual Capital ◽  
Design Methodology ◽  
Reading Time ◽  
Positive Impact ◽  
Content Type ◽  
Strong Focus ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Intellectual capital (IC) can make a substantial positive impact on firm performance. A strong focus on prioritizing the enhancement of the human capital (HC) dimension of IC will increase the likelihood of attaining desired outcomes. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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