Intellectual Capital Components Research Articles

University management based on intellectual capital: a study case with three Colombian universities

PurposeThis study aims to enhance the understanding of university management as a crucial aspect for ensuring the continuous improvement and quality assurance of institutions, considering that universities are knowledge-based institutions and proposing a framework based on intellectual capital and specific university management activities based on its components and measuring these activities in three Colombian universities. The study presents the main activities requiring improvement and identifies common patterns among universities with diverse characteristics in this country.Design/methodology/approachThis study employs a multiple-case study design, examining three Colombian universities and utilises Likert-scale surveys to assess management activities in relation to intellectual capital components. A Kruskal–Wallis test reveals significant differences among institutions; however, the data indicate convergence in the main activities that require improvement.FindingsThe findings reveal convergent results across three Colombian institutions regarding management activities with higher and lower compliance, indicating that these activities require improvement in universities with diverse characteristics. Otherwise, the Kruskal–Wallis test identified significant differences across the universities’ measures, showing that the results are not standardised values across the institutions.Originality/valueThe innovative aspect of this study lies in identifying management activities based on intellectual capital components to enhance university management and measuring them across three Colombian institutions as well as identifying common patterns that require improvement within these institutions. Unlike most studies, which focus on measuring intangible resources, this research identifies management activities that drive institutional improvement.

Assessing the Impact of Intellectual Capitals towards Business and Stock Market Performance for Indonesian Consumer Goods Industries Post AFCTA using VAIC™ Method Ergo Number

This study investigates the influence of Intellectual Capital (IC) on the profitability and market valuation of consumer goods companies listed on the Indonesia Stock Exchange (IDX) during the 2012–2018 period. In the era of globalization and increased competition under free trade agreements like the ACFTA, firms are compelled to innovate and strategically utilize their intangible assets to gain competitive advantage. Using the Value Added Intellectual Coefficient (VAIC™) model developed by Pulic (2000), this research measures IC efficiency through components of human capital, structural capital, and capital employed. Employing panel data regression to analyze firm-level financial data, this study replicates the approach of Sardo et al. (2018), combining time-series and cross-sectional analysis to minimize omitted-variable bias. The results reveal mixed but noteworthy associations between components of IC and firm performance, indicating that effective IC management may enhance profitability and investor confidence. However, the impact varies across components and years, suggesting that the dynamic use of IC remains underutilized in Indonesia’s consumer goods sector. This research contributes to the growing discourse on IC by applying the VAIC™ model in a Southeast Asian context and offers strategic insights for firms to optimize intangible resources for long-term value creation. Implications of the findings encourage firms to invest in knowledge-based assets and recommend policymakers to incorporate IC considerations in corporate governance frameworks.

Demystifying the Nexus Between Intellectual Capital and Financial Performance: Panel Data Evidence from Hotel and Tourism Industry

ABSTRACT Using resource-based and knowledge-based theory, this study aims to examine the effects of intellectual-capital on the financial performance of hotel and tourism (H&T) firms in India. This study employed the System-GMM estimator to assess the panel data comprising a sample of 83 Indian H&T companies for the period 2010–2020. The results show that intellectual-capital significantly improves the performance of Indian H&T companies. Additionally, among the intellectual-capital components, human-capital-coefficient seems to be crucial for the performance of H&T businesses. The results contribute by providing evidence of the intellectual-capital – performance nexus from the H&T industry from one of the fastest growing emerging nations worldwide. Additionally, the study offers practical insights for decision-makers in the H&T industry on how to effectively leverage intellectual-capital to enhance financial performance. The findings can also help policymakers in designing frameworks to promote intellectual-capital, boosting growth in the H&T industry.

From Knowledge to Growth: Investigating Intellectual Capital’s Impact on Financial Sustainability in Emerging Economies

Pakistani firms face significant issues (e.g., weak innovation capacity, limited global competitiveness, inefficient resource allocation, and over-reliance on traditional assets). These issues restrict their ability to achieve sustainable financial growth (SFG). To overcome these issues, our study investigates the impact of Intellectual Capital (IC) on SFG, based on the Knowledge-Based View (KBV) theory. The study employs a quantitative approach using secondary data from 125 non-financial firms listed on the Pakistan Stock Exchange (PSX) for the period 2016–2024. The Modified Value Added Intellectual Coefficient (MVAIC) is used to measure IC, which includes Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), Relational Capital Efficiency (RCE), and Capital Employed Efficiency (CEE). SFG is assessed through a composite index of four financial ratios, while firm size, age, and long-term debt to total assets are used as control variables. Panel data regression models, including random and fixed effects, were applied to test the hypotheses. Findings reveal that all components of IC positively and significantly influence SFG, with RCE having the strongest effect. KBV theory supports these findings and claims that intangible assets are vital for sustained competitive and financial performance. This study contributes to the literature by shifting the focus from short-term firm performance to sustainable financial outcomes and offers practical implications for managers, investors, and policymakers in knowledge-based resource planning.

The cascade effect of women on boards: how firm-level gender diversity management develops intellectual capital

PurposeBuilding on the resource-based view and human capital theory, this paper aims to extend the effects of gender diversity from the board level to the entire organizational level and investigates the impact of diversity and inclusion management practices on a firm’s intellectual capital performance. Conceptually, this study adopts the value-added intellectual coefficient (VAIC) construct and disentangles intellectual capital into its threefold dimensions of human capital, structural capital, and capital employed efficiency - HCE, SCE, CEE, respectively. Specifically, this study explores the effects of three categories of formalized gender diversity management practices – namely recruitment, retention, and training and development – while also considering the supporting role of governance structures and organizational infrastructures as a driver of the overall efficiency and value of intellectual capital.Design/methodology/approachThis study analyzes a sample of 72 firm-year observations associated with 36 Italian companies listed on the Stoxx Italy-45 in the 2018–2019 period and runs multiple linear regression models.FindingsOur findings indicate that a firm’s specific bundle of diversity management practices positively influences intellectual capital performance. By adopting a granular approach on both intellectual capital and diversity management, this study also sheds light on how different intellectual capital components are distinctly affected by varying diversity management practices.Originality/valueThis study enhances the understanding of how gender diversity management practices affect a firm’s intellectual capital, revealing the potential benefits of implementing formalized diversity and inclusion initiatives across multiple organizational levels, spreading from the boardroom to the entire organization.

The impact of innovation on intellectual capital: Evidence from the Saudi Electricity Company

This study investigates the impact of innovation on intellectual capital within the Saudi Electricity Company, using a descriptive-analytical approach. Data were collected through a questionnaire distributed to a sample of employees, and hypotheses were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results demonstrate that fostering an innovative organizational culture significantly enhances all three dimensions of intellectual capital. These findings support the argument that promoting innovation contributes positively to the development of intellectual capital components in the company.

Unlocking public sector excellence: The synergy of intellectual capital and digital leadership in tax administration

Purpose: This study investigates the impact of intellectual capital, specifically public human capital, public relational capital, and public structural capital, on the Directorate General of Taxes (DGT) organizational performance in Indonesia. It also examines the moderating role of digital leadership in enhancing these relationships.Design/methodology/approach: The study employs primary data collected through a survey involving 195 employees from various Tax Service Offices (KPP) within DGT regional offices across Indonesia. The analysis is conducted using structural equation modeling to test the hypothesized relationships.Findings: The results reveal that public human capital, relational capital, and structural capital positively affect DGT's organizational performance. However, while contributing directly to organizational performance, digital leadership does not significantly moderate the relationship between intellectual capital components and performance. Challenges in integrating digital leadership with existing structures and interpersonal engagements may explain this finding.Research limitations/implications: The sample, although diverse, may not fully represent all tax offices in Indonesia, limiting the generalizability of results. The unique characteristics of DGT may also influence the applicability of findings to other public sector organizations.Practical implications: Recommendations include enhancing employee training programs to leverage digital tools, optimizing organizational structures to support digital integration, and strengthening digital leadership strategies that align with human capital development and stakeholder engagement.Social implications: By improving intellectual capital management and digital leadership, public sector organizations like DGT can enhance service quality and stakeholder trust, leading to better compliance and public service outcomes.Originality/value: This study contributes to the literature by focusing on the public sector organization and integrating digital leadership as a moderating factor, a novel approach to understanding how non-accounting elements can bolster public sector performance.

The impact of strategic human resource practices on intellectual capital development in Ethiopia: empirical evidence from Oromia regional public service organizations

Purpose The purpose of this study to examine the impact of strategic human resources (HR) practices (selective staffing refers to recruitment, selection and placement), training practices, performance appraisal and reward systems on intellectual capital components (human, social and organizational) in Oromia Regional public service organizations. Design/methodology/approach The authors used a quantitative method and used basic random and stratified sampling procedures to deliver 450 questionnaires to the directorates, team leaders and employees of 12 sampled bureaus. For the final data analysis, 402 correctly completed questionnaires were used. The data were analyzed using SPSS version 26 and structural equation modeling, as well as the analysis of moment structures version 23. Findings The study’s findings revealed that for enhancing human and organizational capital in public service organizations, selective staffing, training and performance appraisal are important human resource practices. The study findings also revealed that selective staffing and performance appraisal are important human resource practices for enhancing social capital. This study found that the reward systems did not significantly impact three intellectual capital components. However, these strategic HR practices, such as selective staffing, training, performance appraisal and reward systems, explain 56% of the variance in human capital, 49% in social capital and 52% in organizational capital. Research limitations/implications The study was limited to Oromia regional public service organizations and examined the impact of SHR practices from the perspective of selective staffing, training practices, performance appraisal, and reward systems on intellectual capital (human, social, and organizational capital). As a result, this study may not generalize. Practical implications To improve intellectual capital (human capital, social capital and organizational capital), public service organizations should focus on selective staffing, which involves attracting qualified applicants, choosing and assigning the person with the necessary qualifications, offering training based on the skills gap that has been identified, measuring employee performance using standardized tools and giving developmental aspect performance feedback. Originality/value The importance of this study lies in the fact that little of the existing literature explores the impact of strategic human resource practices on intellectual components in Oromia/Ethiopia.

Who do you know, or what do you know? Board intellectual capital components for non-profit board role fulfilment

Purpose: Nonprofit organisations (NPOs) are crucial in building stable and equal societies. NPOs remain under pressure due to increased societal needs and a competitive funding environment. The board of directors (BOD) is responsible for the organisation’s long-term success. Guidelines for the BOD of NPOs are limited, which leaves NPOs vulnerable. This research gap was addressed by exploring board intellectual capital components, specifically human (HC), social (SC), structural (STC) and cultural capital (CC), sufficient for nonprofit board role fulfilment.Design/methodology/approach: Exploratory, qualitative research was conducted. Sixteen registered social services NPOs in South Africa were selected through purposive sampling methods. The NPO was considered from a case-based perspective through fuzzy-set qualitative comparative analysis (fsQCA).Findings/results: STC and SC proved sufficient for nonprofit board role fulfilment. Specifically, STC proved sufficient for the monitoring role, SC for the advisory role, and STC and SC were conjointly sufficient for the provision of resources role of the BOD.Practical implications: By prioritising the SC and STC of the BOD, NPOs can fulfil all three board roles independently of HC. Rather than relying on individual expertise, this approach leverages networks, relationships, and organisational structures to sustain board functionality, thus enabling NPOs to drive long-term sustainability without being dependent on the availability of specific skills or professional experience.Originality/value: This research adopted a case-oriented approach to the BOD of NPOs in South Africa. The findings broaden the understanding of nonprofit governance by highlighting SC and STC as sufficient alternative pathways for fulfilling nonprofit board roles.

Impact of intellectual capital on research performance: an exploration in an Indian higher education institution

PurposeThe study aims to examine the interplay of human capital (HC), organizational capital (OC) and relational capital (RC) and their impact on research performance (RP) of a higher educational institution (HEI) in India.Design/methodology/approachThe authors conducted a quantitative case study with a sample of 63 academic staff/faculty members working in an Indian HEI. A conceptual framework was developed based on the theoretical underpinning of intellectual capital (IC) and was tested using partial least squares structural equation modeling.FindingsThe results show that HC and RC have a significant effect on RP of the HEI. However, OC does not have a direct significant effect unless mediated through HC and RC, indicating full mediation.Research limitations/implicationsThe study responds to the call for empirical examinations across contexts. The findings in India validate the universality of the impact of IC on RP. Further, the study uncovers the mediating mechanism of various components of IC vis-à-vis their impact on RP.Practical implicationsManagement teams of HEIs must take note of the need to nurture and manage IC to drive RP. Further, they must invest in and cultivate HC and RC to take advantage of OC.Originality/valueThe study attempts a first-of-its-kind examination of the mediating mechanism of IC components in the HEI context.

An empirical study of relationships between intellectual capital and financial performance of the tourism-related industries in the tourism-dependent country

This study examines the relationship between intellectual capital (IC) and the financial performance of tourism-related firms in Thailand, using panel data from 32 listed companies (192 firm-year observations) from 2016 to 2021. Panel regression methods, including pooled ordinary least squares (OLS), fixed effects, random effects and the dynamic panel estimator (system generalized method of moments, or system GMM) are applied to test the robustness of results. The findings reveal that overall IC has a significant positive impact on firm profitability, especially return on assets (ROA) and return on equity (ROE). Among IC components, human capital efficiency (HCE) and capital employed efficiency (CEE) are key drivers of firm performance, while structural capital efficiency (SCE) shows limited influence in the dynamic model. These results offer practical insights for managers aiming to strengthen performance through effective IC utilization, and highlight the need for targeted policy support in tourism-intensive economies.

The Impact of Intellectual Capital (Mvaic) on Financial Leverage in the Asean Telecommunication Industry: The Mediating Role of Firm Profitability

Intellectual Capital (IC) significantly enhances financial performance and influences capital structure. This study examines IC's impact on financial leverage using the Modified Value Added Intellectual Coefficient (MVAIC), mediated by firm profitability. IC components—Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), Relational Capital Efficiency (RCE), and Capital Employed Efficiency (CEE)—are analyzed in 120 ASEAN telecommunication firms through panel data regression. Findings confirm IC positively affects profitability (ROA), supporting Resource-Based Theory, while profitability negatively influences financial leverage (DAR), aligning with Pecking Order Theory. Among IC components, only CEE significantly impacts ROA and DAR via profitability mediation. Firms with high capital efficiency achieve better profitability and lower external debt dependence, emphasizing IC management for financial stability.

Intellectual capital valuation under the EU digital strategy

The research explores the priorities of the EU Digital Strategy related to the use of intellectual capital, assessing its value as a key resource for innovation, corporate value crea­tion, sustainable growth, and ensuring competi­tiveness. The hypothesis posits that the introduc­tion of European approaches to the assessment of intellectual capital, aligned with the objectives of the EU Digital Strategy, will en­han­ce the innovation potential, competitiveness, and economic resilience not only of EU member states but also of Ukraine by integrating these practices into digital transformation policies. The research methodology is based on sys­tematic analysis, synthesis, detailing, analo­gy, the hypothetical-deductive method, compa­rison, and observation. The research results demon­strate that intellectual capital is a multifaceted and debated concept, playing a crucial role in shaping enterprise value and serving as an important indicator of its perfor­mance. Howe­ver, its intangible nature, diverse characteristics, and manifestations complicate the processes of evaluation, accounting, repor­ting, analysis, and decision-making. The list of intellectual capital components has been expan­ded to include human, structural, relational, innovative, social, emotional, digital, customer, ecological capital, artificial intelligence capital, digital reputation capital, and intellectual property. The evaluation methodology should be flexible and adaptive, under the recognition characteristics of each component. Thus, key methods, such as market-based, cost-based, and income-based approaches, have been supple­mented with non-financial, integrative, and IT-based methods to ensure the accuracy and transparency of intellectual capital evaluation for more informed decision-making and sustainable growth in the digital economy. The novelty of intellectual capital evaluation in the context of the EU Digital Strategy is based on aspects such as the integration of digital indicators to assess intangible assets, the expansion of accounting for non-financial components (e.g., human and relational capital), and the use of modern technologies such as blockchain and big data for asset identification and validation. Alignment with the goals of the EU Digital Compass 2030 and the integration of intellectual capital eva­lua­tion and disclosure into ESG reporting are the key to adapt Ukraine to European digital transformation standards, thereby accelerating EU integration and enhancing competitiveness

Identification and assessment of the components of the enterprise's intellectual capital

Identification and assessment of the components of the enterprise's intellectual capital

Empowering change: examining the impact of gender quotas and intellectual capital on corporate performance

Purpose This study aims to analyze the performance determinants of the listed companies in the Iberian Peninsula, focusing on the effect of intellectual capital and gender diversity on the board of directors. Design/methodology/approach To achieve this goal, the authors studied 23 Portuguese-listed companies and 74 Spanish-listed firms between 2015 and 2022. The determinants analyzed are intellectual capital, gender diversity in the board of directors and company-specific variables. Using the Generalized Method of Moments system model, the authors used profitability and market measures as proxies for corporate performance. Findings The results point out that intellectual capital, gender diversity and specific internal management variables influence companies’ performance. The intellectual capital components contribute in different ways to profitability and market value. The authors found a U-shaped relationship between gender diversity and the market-to-book ratio. Finally, the results highlight that managers, shareholders, potential investors and external stakeholders perceive corporate performance determinants differently. Originality/value This research marks a pioneering effort in scrutinizing the interplay between intellectual capital and gender diversity and its influence on the performance metrics of Iberian-listed companies. To the best of the authors’ knowledge, this study stands out as the first of its kind to delve into these dynamics within the context of a unified market encompassing the Iberian region.

Impact of Intellectual Capital on Financial Performance: Evidence from Manufacturing Companies in Bangladesh

Purpose- This research aims to appraise how intellectual capital (IC) affects the financial performance of Dhaka Stock Exchange (DSE) listed manufacturing companies in Bangladesh. Methodology- The study chose 92 firms listed on the DSE of Bangladesh based on a convenience sample approach from 2017-2022, resulting in 552 firm-year observations. The study employed a fixed-effect model built around the Hausman test to test the hypothesis. Finally, this study also employed a robustness check against non-normality, which is appropriate for this study. Findings- The study shows that IC can enhance company performance in Bangladesh’s manufacturing sector. More specifically, research outcomes indicate that HCE and CEE meaningfully and positively impact accounting performance (ROA and ROE). HCE has substantial adverse effects, and SCE has a substantial affirmative impact on market performance (TQ). Implications- Policymakers, business executives, finance managers, and other stakeholders can benefit from these findings in several ways. They can better understand the need to invest more in IC components, critically assess IC, and better manage intangible assets, which will boost the performance of Bangladeshi manufacturing companies and aid in creating new business plans. Novelty/originality- This study adds a noteworthy contribution to the current literature by applying the VAIC model for the first time to assess the link between IC and both accounting performance (ROA, ROE) market performance (Tobin’s Q) of DSE-listed manufacturing firms.

The Role of Intellectual Capital and Knowledge Sharing in Manufacturing SMEs' Innovation and Firm Performance

This research work draws attention to the value of the correlation between intellectual capital, knowledge sharing, innovation performance, and firm performance. The study focused on Jordanian manufacturing sector, where this sector has a substantial role in the Jordanian economy. The study employed a quantitative research approach, through designing a questionnaire survey in purpose of collecting data from manufacturing firms in Jordan. The data were obtained from 216 questionnaires out of 250 distributed. The study findings revealed a positive relation between intellectual capital and innovation performance, knowledge sharing, and firm performance. It can be concluded that intellectual capital components, structural, human, and relational capital, positively impacted knowledge sharing within firms. Additionally, the study findings indicated that knowledge sharing is found to partially mediate the relationship between intellectual capital and both innovation performance and firm performance. The study also highlights the potential for manufacturing firms to boost their innovation and overall performance by paying more attention to their intellectual capital, in addition to promoting a culture of knowledge sharing among employees. This study as well provides valuable insights for decision makers on achieving a sustainable competitive advantage through effective knowledge management and innovation strategies.

Using intellectual capital to improve the effectiveness of working capital management in an organization

Purpose The purpose of this study is to investigate the nexus between intellectual capital and working capital management for the Indian extraction firms. Design/methodology/approach This study uses cash conversion cycle and working capital requirement as a measure of working capital management, and value-added intellectual coefficient and modified value-added intellectual coefficient as a measure of intellectual capital to investigate the nexus. This study uses panel-corrected standard errors technique to test the aforementioned relationship using a sample of 67 extraction firms for the period 2010–2019. Findings The results provide empirical confirmation of a negative relationship between intellectual capital and working capital measures in extraction firms in India. Further evaluation reveals that the capital-employed-coefficient is the only intellectual capital component driving the working capital measures of firms. Other factors influencing working capital are firm size, sales growth and leverage. Originality/value This study makes a scholarly contribution by exploring the association between intellectual capital and working capital management, enriching the understanding of efficient working capital management in an emerging economy, India. To the best of the author’s knowledge, this study is one of the first to investigate the above relationship.

Evolution of Intellectual Capital under the Influence of University Digitalization

The digitalization of universities is a key factor in the transformation of the educational environment, which affects the evolution of intellectual capital, changing its structure and management mechanisms. The importance of research is determined by the need to adapt higher education to the new digital realities and challenges confronting universities. The aim of the research is to analyze the changes in the structure of intellectual capital under the influence of digitalization and to identify its main trends in the higher education system. The methods of theoretical analysis, systematization, comparative analysis, and content analysis were used to study literature and analytical reports on the digital transformation of universities. The research is based on an interdisciplinary approach that includes educational management, information technology, and the knowledge economy. It is established that digitalization changes the ratio of intellectual capital components, contributing to the development of structural and innovative capital of universities. A conceptual model of digital intellectual capital is proposed, which reflects the integration of digital technologies into knowledge management processes. The research methods allowed researchers to assess the role of digital competencies, automated management systems, and analytical platforms in the transformation of the educational environment. The key trends in the development of intellectual capital in the digital age are formulated and the challenges associated with the adaptation of universities to technological changes are outlined. The theoretical significance of the research is to expand the scientific understanding of the impact of digitalization on knowledge management in higher education. The practical significance lies in the possibility of using the results obtained to develop strategies for digital transformation of universities and improve educational policies. The scientific novelty of the research lies in a comprehensive approach to the analysis of the digitalization of intellectual capital, which allows researchers to determine the main directions of its development. Prospects for further research are related to the empirical assessment of the impact of digital technologies on the efficiency of university processes and the integration of digital strategies into the educational management system. Type of article: theoretical.

ANALYSIS INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE AND SUSTAINABLE GROWTH OF COMPANY IN INDONESIA

The objective of this study is to examine the impact of Intellectual Capital (IC) on financial performance and sustainable growth within consumer goods sector companies in Indonesia over the period from 2018 to 2022. The research employs a multiple regression analysis method to assess the relationship between IC variables—measured using the Value Added Intellectual Coefficient (VAIC)—and its components: Capital Employed Efficiency (CEE), Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), Innovative Capital Efficiency (RDE), and Relational Capital Efficiency (RCE), in relation to financial performance indicators such as Return on Assets (ROA), Return on Equity (ROE), Sales Growth (SG), and Sustainable Growth Rate (SGR). The results of the analysis indicate a relationship between IC and financial performance, where VAIC demonstrates a significant influence on ROA, ROE, SG, and Sustainable Growth Rate (SGR) in the companies. However, findings regarding the individual IC components (CEE, HCE, SCE, RDE, and RCE) reveal varying effects on financial performance (ROA, ROE, and SG) and SGR. The implications of this study emphasize the critical importance of effective management and development of Intellectual Capital for companies, particularly in enhancing financial performance and achieving sustainable growth.