Impact of firm's intellectual capital on firm performance: a study of Indian firms and the moderating effects of age and gender

Abstract

PurposeThe purpose of this study is to empirically examine the impact of Indian firms' intellectual capital on firm performance, as well as the moderating effects of age and gender therein.Design/methodology/approachThe research initially develops a theoretical model, through extant works and theories, which is subsequently empirically validated using the partial least square structural equation modeling technique with 328 respondents from 12 Indian firms.FindingsThe study concludes that specific dimensions of firms' intellectual capital, including structural capital, human capital and customer capital, positively and significantly impact firm performance, which in turn provides the firm competitive advantages. The study also finds that there are significant moderating effects of age and gender on the relationship between firm's intellectual capital and firm performance.Research limitations/implicationsFurther to its evident contribution to scholarly knowledge and its provision of a validated model, which could be used in other emerging and developed markets as well, the research provides valuable practicable directions to firm executives regarding the importance and utilization of the structural, human and customer capital in improving firm performance and strengthening its competitive edge.Originality/valueThe study adds valuable knowledge to the body of literature on intellectual capital, through its explicit empirical findings, as well as through its focus on the significant emerging market of India.