Capital Innovation Research Articles

Does Innovation Capital Mediate the Link between Human Capital Investment and Financial Performance? An International Investigation

Using a comprehensive database of 6,331 firms obtained from 78 countries, this study examines the impact of human capital investment in employee training and development upon the firm financial performance through the research and development intensity of innovation capital. Various analyses were employed, including descriptive statistics, Pearson’s correlation analysis, and mediation analysis. Study results revealed the partial mediation role of innovation capital upon the relationship between human capital investment and firm performance as measured by accounting-based return on assets. However, the role of innovation capital converted to full mediation when market-based Tobin’s Q was used for the performance measurement.

The Role of Innovation Capital on the Public Infrastructure Project Performance in UAE

UAE is one of the leading countries in the Middle East that has achieved a rapid growth in its economy over the last decades. In a few years, the UAE has built several infrastructure projects, which reflects the state trends towards improving the provided services to the public. The aim of this paper is to investigate the impact of innovation capital on the infrastructure project performance in the United Arab Emirates. This study used a quantitative method design. The population of this study comprised all unlisted infrastructure company providers within the UAE, while the sample was 293 employees from these companies. This study relies on the primary data measurements; the questionnaire instrument was used. The current study has found that there is a positive and significant relationship between innovation capital and infrastructure project performance improvement.

Экономическая эффективность «умного производства»: от целевых установок к регламентации

The article deals with the problems of assessing the economic efficiency of smart production and ways to resolve them. It has been found that Smart Manufacturing is currently becoming a goal in itself and a guarantor of successful development of industrial business. A comparative analysis of scientific publications to clarify the content of the concept of Smart Manufacturing is carried out, it is revealed that it is necessary to distinguish between intelligent and smart production, which are currently used as synonyms. Analysis of the practice of organizing smart manufacturing has shown that often the process of creating Smart Manufacturing pursues the goal of participating in a popular, useful process with the expectation of future “blurry” positive results; but there are also the actual results in the form of cost savings (better organization of the production process), an increase in production and an increase in labor productivity. All enterprises and organizations quite clearly understand the process of creating a specific smart production with detailing of individual stages, therefore, the specific goals of Smart Manufacturing should be specified taking into account a specific enterprise, but at the same time, standardized for the possibility of a comparative assessment of economic efficiency. It has been proved that traditional economic indicators of efficiency are used to assess the economic efficiency of Smart Manufacturing; but for the organization it is necessary to form a special system of performance indicators based on the theory of management by goals. It is determined that the main factor of Smart Manufacturing is innovative capital, since smart manufacturing is innovative by definition. Possible options for the formation and combination of goals and objectives of Smart Manufacturing and innovation capital are considered. The content and structure of the regulation for assessing the economic efficiency of Smart Manufacturing are proposed

INFLUENCE OF INTELLECTUAL CAPITAL ON ORGANIZATIONS COMPETITIVE ADVANTAGE A SURVEY OF INSURANCE COMPANIES IN MERU COUNTY

This study sought to analyze the influence of intellectual capital on competitive advantage. The specific objectives were to determine the influence of innovation capital, human capital, on competitive advantage. The main challenge facing the intellectual capital in Kenya, is most organization putting more infancy on the intellectual capital of the management and unwillingness to change even though it can give the organization a better competitive edge in the already flooded market. The study employed descriptive research design and the target population consisted of 115 departmental heads in the insurance companies in Meru. The sample size was determined by calculating 50% of the number of departmental heads in each Insurance Company resulting to a sample size of 55 respondents. Primary data was collected using open ended and close ended questions. Descriptive statistics and multiple linear regression was used to analyze the data which was presented in the form of frequency tables and percentages. The output given from the findings indicate that there is a significant positive relationship between innovation capital, human capital and competitive advantage of insurance companies. It was recommended that: Understanding of customer is a key ingredient of intellectual capital to creating a solid relationship between an enterprise and its customers. Employees of insurance companies should possess technical, interpersonal, and conceptual skills to effectively plan, lead, organize and control the enterprise effectively leading to increased performance and consequently competitive advantage.

The effect of leadership style and innovation capital on SMEs sustainability performance from a managerial perspective

Small and medium enterprises (SMEs) face various challenges in sustaining their operations in the global business competition. In line with the resource-based view (RBV), SMEs need to utilize their available assets, including the right leadership style and innovative initiatives, to create a competitive pursuit of sustainability performance. An effective leadership style should be adaptable and flexible, manifesting in different scenarios of varying leadership behaviors. Meanwhile, innovation capital is a valuable asset that may help businesses create value in today's economy and encourage employees to be more creative. However, there has been little empirical research on the impact of leadership styles and innovative capital on sustainability performance from the emerging economies perspective. Hence, this study aimed to test the relationship between innovation capital, leadership styles, and sustainability performance of SMEs. Data were collected from 111 SMEs in Malaysia and analyzed using IBM SPSS. The results revealed that leadership styles and innovation capital have significant positive relationships with sustainability performance. This study contributes to the literature on the sustainability performance of SMEs and helps leaders strategize the appropriate leadership approaches and innovation capital to achieve sustainable performance.

Does Intellectual Capital Measurement Matter in Financial Performance? An Investigation of Chinese Agricultural Listed Companies

Intellectual capital (IC) has become a crucial strategic resource in the knowledge economy. The purpose of this study is to understand the IC-financial performance relationship of listed Chinese agricultural companies. This paper uses the original value added intellectual coefficient (VAIC) model, the adjusted VAIC (AVAIC) model, and the modified VAIC (MVAIC) model to measure IC. The results show a positive and significant relationship between IC and financial performance (return on assets and return on equity) in three models. Additionally, human capital and physical capital are two major driving forces. In the AVAIC model, innovation capital exerts a positive impact on financial performance, whereas this impact is not significant at the 5% level in the MVAIC model. The results suggest that further improvements in IC measurement are still needed. This study has important implications for both academia and industry regarding IC measurement.

Intellectual capital and firm efficiency of US multinational software firms

PurposeThe main purpose of this study is to empirically investigate the impact of intellectual capital efficiency on US multinational software companies' performance from 2012 to 2016 by applying data envelopment analysis (DEA).Design/methodology/approachIt adopts a new slacks-based measure (SBM) to obtain a more accurate performance estimation and rank between companies. Regression analysis is used to test the overall IC and each of its elements (Human Capital, Innovation Capital, Process Capital and Customer Capital).FindingsThe univariate result shows that multinational companies are more efficient than non-multinational companies. However, the regression result shows that multinationality can hardly explain the firm efficiency of software firms. Another interesting finding is that intellectual capital has a positive and significant impact on software firm performance in the US human capital influences firm efficiency directly. However, when human capital is combined with the other elements of IC, the contribution of human capital becomes less significant. This is because people may think that innovation capital, process capital and customer capital can replace human capital, but it is not. In short, human capital may affect firm efficiency through other elements of IC (innovation capital, process capital and customer capital) as it is the base of other elements.Research limitations/implicationsThe results show that multinational companies have higher efficiency scores than non-multinational companies. In addition, Intellectual capital has a positive and significant impact on software firm performance in the US human capital influences firm efficiency directly. However, when human capital is combined with the other elements of IC, the contribution of human capital becomes less significant. This is because people may think that innovation capital, process capital and customer capital can replace human capital, but it is not. In short, human capital may affect firm efficiency through other elements of IC (innovation capital, process capital and customer capital) as it is the base of other elements.Practical implicationsOverall, the study highlights the needs of having intellectual capital and its elements (Human Capital, Innovation Capital, Process Capital and Customer Capital) to increase firm efficiency.Originality/valueFirst, the authors use a more comprehensive elements of IC, which are human capital, innovation capital, process capital and customer capital for a better IC measurement. Second, this study makes the first attempt using the DSBM model via DEA to examine the operating efficiency of US multinational software firms.

Evaluating the vulnerability of farming communities to winter storms in Iowa, US

Winter storms have been reported as the second-most frequent catastrophe in the Midwest of the United States and can create non-negligible impacts on farming communities that highly rely on climatic-sensitive resources and activities. However, few studies have attempted to assess the vulnerability to winter storms in rural contexts. Focusing on all counties in Iowa, US, as the study area, this research aimed to evaluate the vulnerability of farming communities to winter storms and its major determinants. It first identified both climatic and non-climatic indicators for quantifying winter storm exposure, sensitivity, and adaptive capacity by reviewing previous related studies and examining qualitative interview results. Then, spatial analysis tools were used to quantify and aggregate several indicators, such as winter temperature variation, natural shelter, energy capacity, and facility density. Next, factor analysis was employed to identify latent variables and estimate the index score for adaptive capacity. Finally, the vulnerability of Iowa counties to winter storms was calculated and mapped. The results showed that the determinants of adaptive capacity to winter storms in Iowa could be explained as farming economic status, environmental institutional capital, and innovative capital. Overall, high vulnerability was found in Southeast Iowa due to its low farming economic status and innovative capital, and Northwest Iowa as a result of high exposure and low environmental institutional capital. In a state with dominant farming communities, whether to include its major metropolitan areas to assess winter storm vulnerability seemed to only affect the evaluation of the general pattern of adaptive capacity but not exposure or sensitivity.

HUMAN CAPITAL AS A KEY FACTOR IN THE DEVELOPMENT OF UNIVERSITY INNOVATION

BACKGROUND AND OBJECTIVES. The transition to a digital economy as a vector for the development of multiple social institutions is forced to shift towards multi-dimensional integration. As a consequence, for a modern university, innovative activities are no less important than educational ones. At the same time, the key resource in the process of generating innovative solutions is the human resource. The multidisciplinary orientation of universities allows combining specialists with unique competencies in a single environment, complementing each other and allowing to achieve a synergistic result, and since innovation invariably implies generation of a certain innovation, it is this property of a university that allows us to talk about the presence of a unique innovative potential – human capitalMETHODS. The article uses methods of system analysis, scientific analogy and abstraction – to study the category "human capital"; methods of grouping and systematisation – when systemising the main classification features of human capital and factors of influence on its development with account of globalisation trends; statistical analysis – to assess the state of development of human capital at university; indicative methods – when diagnosing human capital development in globalisation conditions; graphic methods – to visualise.FINDINGS. The following categories were defined: 1) "human capital" as a complex category, the main component of which is the development of non-standard human thinking, capable of self-organization, renewal, self-perfection and acts as an intellectual, creative factor and a key resource in building a socio-innovative model of economic development; 2) "innovative human capital of the university in conditions of globalization" which is viewed from an integrated approach, with the main emphasis on self-perfection, self-actualization of the human capital of the university; 3) "innovation human capital of the university" which is viewed from an integrated approach.CONCLUSION. The development of human capital as the main condition for the formation of the structure of economy of innovative type, based on information and intellectual production technologies, causes the need to reform and improve the systemic state policy, focused on providing the basic conditions for comprehensive human development. It is the active impact of the state in complex economic conditions to increase the efficiency of human capital development both at the macro level (economy as a whole) and at the micro level (university) that will improve the economic situation in the country and enhance the competitiveness of the national economy in the global world.

Exploring the Nonlinear Effect of Intellectual Capital on Financial Performance: Evidence from Listed Shipping Companies in China

Intellectual capital (IC) is reckoned as a significant driving force of competitive advantage and financial sustainability of any organization. The study’s objective is to explore the nonlinear effect of IC and its components on financial performance (FP) of China’s listed shipping companies over a six-year period (2014–2019). The modified Value Added Intellectual Coefficient (MVAIC) model is used to systematically assess IC. The empirical results show an inverted U-shaped relationship between the aggregate IC and FP (measured through return on assets). Regarding IC components, human, relational, and innovation capitals have an inverted U-shaped relationship with FP, while the quadratic relationship between structural capital and FP is not significant. In addition, physical capital has a U-shaped relationship with FP. This study will offer some new insights for corporate managers to improve firms’ FP by effectively utilizing their IC resources.

Retraction: Analysis of the Promotion Effect of China’s Financial Venture Capital Development on Innovative Capital

Abstract This article has been retracted upon request from the authors due to errors they found in the research and figures. ASTM International August 2023

Intangible Assets as Financial Performance Drivers of IT Industry: Evidence from an Emerging Market

In the past few decades, IC has been viewed as a crucial factor for improved financial performance of IT companies. Globally, the IT industry has shown positive trendlines and the tremendous importance of intangible resources as part of intellectual capital. Intellectual capital per se may not be a novel topic in the IT industry. Nonetheless, this paper focuses on determining which type of intellectual capital is paramount for financial success, which has remained an open puzzle. The aim of this paper is to analyse the human, relational, structural and innovation capital of IT companies and to measure their impact on financial performance. Moreover, the authors have analysed the impact of the intellectual capital elements on several key performance indicators as the most frequently used in these kinds of studies. In order to address this aim, the study collected primary data from 101 respondents – business owners, managers and experts from a rapidly growing IT ecosystem in South-East Europe. Most research has focused on developed countries for addressing similar topics. Therefore, the authors call out for additional research of this topic in other emerging and developing environments. The findings of this study indicate a positive effect of intellectual capital on business performance. This study raises awareness among business experts in the field of intellectual capital, and supports decision-making through the concept of identifying, managing and analysing intellectual capital and its effect on overall business results. Even though the IT industry has become global, this study draws exceptional attention to the interplay between IC and financial performance in a developing IT ecosystem setting.

Financing and coordination strategies for a manufacturer with limited operating and green innovation capital: bank credit financing versus supplier green investment

Financing and coordination strategies for a manufacturer with limited operating and green innovation capital: bank credit financing versus supplier green investment

Do Intellectual Capital Elements Spur Firm Performance? Evidence from the Textile and Apparel Industry in China

This paper examines how investment in intellectual capital (IC) elements by textile and apparel companies improves firm performance measured in terms of profitability, market value, and productivity. The modified value-added intellectual coefficient (MVAIC) model is applied to measure IC. Using a panel of 35 Chinese textile and apparel companies for a six-year period (2013–2018), the results show that physical and human capitals are the strong factors that contribute to firm performance. In addition, relational capital negatively influences profitability and market value, and structural capital and innovation capital have a negative impact on employee productivity. We also find that the MVAIC model performs better in measuring IC than the original value-added intellectual coefficient (VAIC) model. This paper can provide some insights for corporate managers to enhance firm performance and gain competitive advantage by proper utilization of IC in traditional industries.

Toward Accountable Education in the Medical Sciences Universities by Connecting Innovation and Intellectual Capital

This article addresses this important issue that medical sciences universities are an organization that is rich in intellectual capital in various fields and specialties and also have multiple customers and segmented markets. Therefore, it is necessary to establish a connection between these assets and innovation by properly managing the intelligent capital and identifying the society’ S needs. It should also avoid continuing to educate academic fields that are no longer needed by society and try to replace them with ones that are appropriate to the needs of society to save its tangible capital. This means that education is accountable for the needs of society. This will not happen unless establishing a continuous and strong connection between the university and industry.

Toward Accountable Education in the Medical Sciences Universities by Connecting Innovation and Intellectual Capital

This article addresses this important issue that medical sciences universities are an organization that is rich in intellectual capital in various fields and specialties and also have multiple customers and segmented markets. Therefore, it is necessary to establish a connection between these assets and innovation by properly managing the intelligent capital and identifying the society’ S needs. It should also avoid continuing to educate academic fields that are no longer needed by society and try to replace them with ones that are appropriate to the needs of society to save its tangible capital. This means that education is accountable for the needs of society. This will not happen unless establishing a continuous and strong connection between the university and industry.

Developing an innovation capital index of global airlines using a hierarchical data envelopment analysis approach

This study proposes an effectiveness-based hierarchical data envelopment analysis (H-DEA) method to endogenously assign weights with the purpose of aggregating subcategories for an innovation capital index in the global airline industry. The study comprises airlines ranked in the World's Top 100 Airlines in 2018. The effectiveness-based H-DEA results provide evidence that there are opportunities for airlines to improve their innovation capital index, on average, by 48%. Relatively low scores in the internal capital category are identified as the major contributor to the poor innovation capital index, and the optimal scores and weights of the innovation capital index are found to differ by geographical location. Effectiveness-based H-DEA offers an alternative method for determining the optimal weight of an innovation capital index in a multidimensional setting for international comparison. The flexible weight can help each airline to focus on the critical innovation capital categories requiring improvement to create an effective business strategy. To the best of the authors' knowledge, to date, no studies have focussed on innovation capital in the airline industry. This study also provides a detailed discussion on how to assess the innovation capital index in the global airline industry specifically using the effectiveness-based H-DEA method.

10 STARTUPS TO WATCH 2021: Early-stage companies advance precision medicine by applying AI, clinical genomics, and other new technologies

10 STARTUPS TO WATCH 2021: Early-stage companies advance precision medicine by applying AI, clinical genomics, and other new technologies

Does Intellectual Capital Investment Improve Financial Competitiveness and Green Innovation Performance? Evidence from Renewable Energy Companies in China

This paper aims to investigate the impact of intellectual capital (IC) and its components on financial competitiveness and green innovation performance. The data are collected from renewable energy companies listed on the Shanghai and Shenzhen stock exchanges during 2013–2018. The modified Value Added Intellectual Coefficient (MVAIC) model is applied as a proxy for IC efficiency, an index system is constructed to systematically measure financial competitiveness, and green innovation performance is measured by the total number of green patents, the number of green invention patents, and the number of green noninvention patents. The empirical results show that IC has an inverted U-shaped relationship with financial competitiveness and no impact on green innovation performance. Regarding IC components, human capital (HC), structural capital, and relational capital positively affect financial competitiveness. HC has a negative impact on green patents, while innovation capital has a positive impact on green invention patents. Physical capital is the main driving force of green innovation performance. This study will help managers to reasonably manage their IC resources to strengthen financial competitiveness and achieve green development.

Influence of Intellectual Capital on Performance

Intellectual capital (IC) has gained recognition in enhancing the firms' value and gain a competitive advantage in the developed world. The present study examines the impact of IC on firms' financial performance. The study takes 48 companies for the time period of 10 years (2009-2018). The paper has used modified Pulic's value added intellectual coefficient (VAIC) as a proxy to measure IC and return on assets (ROA) to measure firms' financial performance. Granger causality between all the components of IC and ROA has been tested using Dumitrescu-Hurlin test. To analyse the impact, correlation and dynamic panel data regression technique has been applied. The result indicates that overall intellectual capital, human capital, relational capital, process capital, and financial capital have a significant impact on financial performance. On the other hand, innovation capital has no significant relationship with firms' financial performance. The results are helpful for managers, policymakers, government, and investors so that they can properly manage and regulate the IC of their organization.