scholarly journals Impact of human and relational capital on the profitability of commercial banks in Serbia

2020 ◽  
Vol 68 (5-6) ◽  
pp. 305-318
Author(s):  
Marija Pantelić ◽  
Siniša Radić ◽  
Milutin Živanović
Keyword(s):  
Intellectual Capital ◽  
Commercial Banks ◽  
Customer Relations ◽  
Positive Impact ◽  
Relational Capital ◽  
Core Business ◽  
Structural Capital ◽  
Business Profitability ◽  
Business Entities ◽  
The Impact

Intellectual capital encompasses resources that have become increasingly important for business entities. Most of empirical research studies have found strong evidence that investments in intellectual capital components, such as human, relational and structural capital, have a positive impact on the overall performance of companies. This paper examines the impact of investments in specific components of intellectual capital, primarily related to human and relational capital, on the profitability of commercial banks that operate in Serbia. Empirical analysis covers the postcrisis period from 2010 to 2016. Our sample consists of 154 bankyear observations (22 commercial banks in a 7-year period). The results show that the banks that operate in Serbia are characterized by a low level of labor efficiency and that traditional ways of building and maintaining good customer relations negatively affect the core business and total profitability. Therefore, one of the ways to increase the efficiency of investments in human capital and to improve customer relations could be to digitalize the business of commercial banks. Our findings also show that the banks that have higher deposit growth rates have higher core business profitability, as well as that the banks with higher share of company loans in total loan portfolio have higher total profitability.

The impact of intellectual capital and related party transactions on contractual costs

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mahdi Salehi ◽  
Samira Ahmadzadeh ◽  
Fahimeh Irvani Qale Sorkh
Keyword(s):  
Intellectual Capital ◽  
Positive Impact ◽  
Stock Exchange ◽  
Relational Capital ◽  
Statistical Population ◽  
Content Type ◽  
Structural Capital ◽  
Cash Compensation ◽  
Negative Effect ◽  
The Impact

PurposeThe present study aims to assess the potential effects of intellectual capital (IC) and disclosure of firms' affiliate transactions on contractual costs (CC).Design/methodology/approachThe statistical population of the study includes 768 firm-year observations listed on the Tehran Stock Exchange during 2012–2017. According to Pulic's model, the authors divide IC into three components, such as human capital (HC), relational capital and structural capital (SC). CC is also measured by utilising two variables of board cash compensation and unexpected reward of managers.FindingsThe results show that there is a negative and significant relationship between HC and CC. In contrast, the authors find that relational capital and SC have a positive impact on CC. The authors’ further analyses also demonstrate that disclosure of transactions with affiliates has a negative effect on unexpected rewards of managers.Originality/valueSince there is no conducted study, which discusses the relationship between IC and contractual cost, this paper might be considered the primary studies conducted in this line of literature, specifically in emerging markets. Moreover, to the best of the authors' knowledge, this is the first study investigating the potential impact of disclosure of selling and purchasing transactions, separately, on the director's unexpected reward.

scholarly journals Measurement of Intellectual Capital in the Indian Banking Sector

2016 ◽  
Vol 41 (1) ◽  
pp. 61-73 ◽  
Author(s):  
Hardeep Chahal ◽  
Purnima Bakshi
Keyword(s):  
Information Technology ◽  
Human Capital ◽  
Intellectual Capital ◽  
Commercial Banks ◽  
Banking Sector ◽  
Three Dimensions ◽  
Relational Capital ◽  
Valuable Insight ◽  
Executive Summary ◽  
Structural Capital

Executive Summary Intellectual capital has recently been receiving increased attention from both academic communities and practitioners, and is identified as an important strategic asset which provides sustainability and yields better performance. It also gives rise to the view that the organizations which possess skilled, creative, and distinctive knowledgeable employees along with supportive organizational structures and systems, and maintains cordial customer relations contribute in achieving superior organizational position. Hence, it is important to understand to what extent intellectual capital is efficiently utilized by specific sectors in creating value for organizations ( Kamath, 2007 ). The present study aims to develop, establish, and empirically validate the intellectual capital scale in the banking sector, in the context of emerging economies like India. Data were collected from three executives each (including one manager and two senior employees) from 144 branches of 21 public and seven private commercial banks operating in Jammu city, India. The three senior most executives were purposively selected because of being more knowledgeable and experienced. The study established the intellectual capital scale as a multidimensional scale comprising human capital, relational capital, and structural capital. All the three dimensions were found to significantly contribute to the intellectual capital, among which relational capital contributed relatively more, followed by human capital and structural capital. Relational capital consists of important items like meeting with customers, customer feedback, and knowledge and regular customer interaction. Similarly, human capital dimension consists of significant items like employee creativity, devoted staff, training and education, experience, attitude, and innovative employees. Structural capital is a composite of valuable items like structure, systems, information technology, capabilities, culture, empowerment, and service quality which helps in developing intellectual capital. The research findings can help bank managers in determining how to generate value using human, structural, and relational capital. For instance, the study findings offer valuable insight into how the managers can improve bank’s structural capital by encouraging innovation ability among employees, positive culture, and strengthening information technology in terms of continuously updating software and hardware. The study is limited to public and private commercial banks operating in Jammu city. In future, the scale validation can be undertaken to investigate whether the three-dimensional intellectual capital scale can be generalized for other industries and countries.

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 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 Managerial intellectual capital on the internationalization of commercial banks in Kenya

2020 ◽  
Vol 9 (3) ◽  
pp. 59-68
Author(s):  
Philip Omondi Peters ◽  
Timothy Chrispinus Okech
Keyword(s):  
Human Capital ◽  
Intellectual Capital ◽  
Commercial Banks ◽  
Structural Equation ◽  
Middle Level ◽  
Relational Capital ◽  
Global Mindset ◽  
Philosophical Approach ◽  
Cross Sectional ◽  
Structural Capital

Managerial intellectual capital is one of the attributes of a global mindset, associated with knowledge, skill level, and creation of an organization competitive advantage. This paper sought to delve into the concept of internationalization of commercial banks by examining the relationship between managerial intellectual capital and internationalization of commercial banks in Kenya. The paper used positivism philosophical approach and adopted cross-sectional descriptive research design. The target population was top and middle level managers in commercial banks in Kenya. Data was collected using a structured questionnaire and analyzed using Statistical Package for Social Sciences (SPSS) version 22.0 to obtain both descriptive and inferential statistics.  In addition, Structural Equation Modelling (SEM) was used to establish the influence of managerial global mindset attributes on internationalization of commercial banks in Kenya. The study established that there was a significant and positive relationship between human capital, relational capital and structural capital as attributes of managerial intellectual capital and internationalization of commercial banks in Kenya. Further, the study established that human capital, relational capital, and structural capital have significant influence on the success of internationalization strategy of commercial banks in Kenya. Thus, structural capital, human capital and relational capital, which are the managerial intellectual capital attributes, jointly influence the success of the internationalization of commercial banks in Kenya. It is therefore recommended that when appointing managers, the management of commercial banks should consider factors such as an individual’s knowledge of global industry, global value networks, and global organization.

Crowdfunded and then? The role of intellectual capital in the growth of equity-crowdfunded companies

2020 ◽  
Vol 24 (4) ◽  
pp. 475-494
Author(s):  
Ciro Troise ◽  
Diego Matricano ◽  
Elena Candelo ◽  
Mario Sorrentino
Keyword(s):  
Intellectual Capital ◽  
Product Innovation ◽  
Employment Growth ◽  
Positive Impact ◽  
Research Field ◽  
Relational Capital ◽  
Quantitative Methodology ◽  
Content Type ◽  
The Impact ◽  
Industry Experience

Purpose This paper aims to investigate whether and to what extent equity crowdfunding (ECF) is able to build enduring businesses. This research explores the post-campaign growth of equity-crowdfunded companies and analyses the impact of intellectual capital (IC) on their growth. To achieve the above aim, we provide a theoretical framework that includes the three well-known dimensions of IC – i.e. human, structural and relational capital – as independent variables and company growth, meant as sales and employment growth, as dependent variable. Design/methodology/approach This research uses a quantitative methodology based on two regression analyses. The authors use hand-collected data on 51 successful equity-crowdfunded projects listed on seven Italian platforms. Findings The authors find that three variables, namely prior industry experience (human-capital), product innovation (structural-capital) and equity offered (relational-capital) are significant and positively related to the growth of equity-crowdfunded companies. In particular, prior industry experience positively influences sales growth; product innovation positively influences employment growth. Equity offered, instead, has a strong positive impact on both sales and employment growth. Companies that offer a larger percentage of equity during the campaign disclose higher probabilities of growth. Practical implications The study has useful implications for several stakeholders, in particular, founders, platform managers, crowdfunders, policy makers and authorities. Originality/value The results shed some light on the nascent research field related to post-campaign scenarios of equity-crowdfunded companies. This paper is the first to explore the impact of IC on the growth of companies funded through ECF.

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 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.

scholarly journals Intellectual Capital Performance and Profitability of Banks: Evidence from Pakistan

2019 ◽  
Vol 12 (2) ◽  
pp. 56 ◽  
Author(s):  
Muhammad Haris ◽  
HongXing Yao ◽  
Gulzara Tariq ◽  
Ali Malik ◽  
Hafiz Javaid
Keyword(s):  
Intellectual Capital ◽  
Negative Impact ◽  
Positive Impact ◽  
Value Added ◽  
Bank Profitability ◽  
Policy Makers ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact ◽  
Country Specific

The study contributes to the existing literature on intellectual capital (IC) performance and profitability by extending evidence from Pakistan. The study examines the impact of IC performance on the profitability of Pakistani financial institutions. It further examines how corporate governance, bank specific, industry specific, and country specific indicators effect Pakistani banks’ profitability. The result reports both the linear and non-linear impact of IC performance on profitability, which affirms an inverted U–shaped relationship. Among the three value added intellectual coefficient (VAIC) components, capital employed efficiency (CEE), and human capital efficiency (HCE) are found to have a significantly positive and structural capital efficiency (SCE) is found to have a significantly negative impact on bank profitability. The study notes a positive impact on profitability of factors like board independence, directors’ compensation, and higher capitalization. It reports a negative impact on profitability of factors like board size, board meetings, credit risk, industry concentration and economic growth. The results also indicate low profitability of banks during the period of government transition. The study provides insights into the important profitability drives and suggests that the impact of investment in IC on profitability is limited to an extent. The findings of this study are likely to be useful for policy makers, management, and academics.

scholarly journals Intellectual Capital and Firms’ Financial Performance: A European Empirical Study‬‬‬‬

2017 ◽  
Vol 7 (2) ◽  
pp. 1 ◽  
Author(s):  
Filipe Sardo ◽  
Zelia Serrasqueiro
Keyword(s):  
Financial Crisis ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Positive Impact ◽  
Estimation Method ◽  
European Countries ◽  
Current Period ◽  
Structural Capital ◽  
Capital Efficiency ◽  
The Impact

The current study seeks to analyse the impact of the intellectual capital (IC) on the financial performance measured by Return on Assets in the European context for the period 2004-2015. This study uses data of non-financial listed firms of 8 European countries for the period between 2004 and 2015. Considering that financial crisis had different impact on European countries, we divided the eight countries in two groups: (1) group 1 – Greece, Portugal, Spain and Italy; and (2) group 2 – Germany, France, Finland and United Kingdom (UK). The estimation method used is the GMM system (1998) estimator, as a dynamic panel estimator, which allows to do longitudinal studies and to analyse the effect of lagged explanatory variables on firms’ financial performance. The results indicate that IC efficiency in the current period has a positive impact on financial performance. The three components of VAICTM Model - capital employed efficiency, human capital efficiency and structural capital efficiency in the current period have a positive impact on financial performance, with the exception for structural capital efficiency which for the first group of countries has a negative impact on financial performance. Finally, results suggest that the financial crisis negatively affects financial performance on both groups of countries. The current study contributes to the current literature, analysing the impact of IC on firms’ financial performance in two groups of European countries which suffered the consequences of the 2008 crisis differently.

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