Intellectual Capital Elements Research Articles

Intellectual capital as a driver of value creation in Serbian entrepreneurial firms

PurposeThis paper analyses the role of intellectual capital (IC) as a factor of the financial performance of entrepreneurial firms, which are recognized as the main drivers of economic growth and employment.Design/methodology/approachThe sample consists of 188 business owners from Serbia. The primary data are collected using the questionnaire, while the secondary data come from the annual financial statements of their companies. The elements of IC as independent variables are grouped into three components: human, structural and relational capital; sales revenue and operating profit CAGR (5y) are used as dependent variables, while company size and industry type are used as control variables. Statistical analysis involves factor and regression analyses.FindingsThe results reveal that IC components contribute to the long-term financial performance of entrepreneurial firms. Specifically, the following elements have positive effects on financial performance: knowledge of the entrepreneur, process improvement and organisational culture. On the other hand, entrepreneurs’ social skills and tenacity were found to have a negative impact on revenue and operating profit growth, while support from informal networks had a negative effect on the growth of sales revenue.Originality/valueThis study aims to fill a gap in the literature on the impact of IC on the financial performance of entrepreneurial firms.

Dynamic interactions between intellectual capital elements and productivity in the korean manufacturing industry: a panel vector autoregressive approach

Dynamic interactions between intellectual capital elements and productivity in the korean manufacturing industry: a panel vector autoregressive approach

Intellectual capital and green entrepreneurship: a systematic literature review

PurposeThe study aims to analyze how the characteristics of intellectual capital (IC) facilitate green entrepreneurship development in the context of ecology, environment and sustainability. Specifically, the evolution of IC and green entrepreneurship was explored through a systematic review, including the relationships and interactions between human, structural and relational capital and green entrepreneurship.Design/methodology/approachMeticulously combing the Web of Science Core Collection, the researcher conducted a bibliometric analysis of 800 English-language articles from 2002 to 2023. Employing co-word analysis and visualization, the literature on IC and green entrepreneurship was synthesized and systematized, exploring core topics, knowledge architectures and their evolutionary trajectories.FindingsThe IC elements such as human, structural and relational capital interact with green entrepreneurship; IC enhances the innovation and competitiveness of green entrepreneurship, while green entrepreneurship orientation influences the accumulation and reshaping of IC. The flow of IC impacts the establishment of green start-ups and the emergence of green industries, promoting sustainable growth.Originality/valueThe dynamic interplay between IC and green entrepreneurship is marked by intricate relationships and diverse attributes. Currently, no comprehensive theoretical model has been established to address the complexities intrinsic to this study. The evidence suggests that the green entrepreneurial orientation influences corporate initiatives to bolster human and structural capital, with structural capital serving as both a constraint and catalyst for human capital. The paper presents an embryonic framework of IC for green entrepreneurship, highlighting its critical role in the aggregation and reconfiguration of IC or venture creation and industry evolution. This contributes to a more profound understanding of IC in entrepreneurial contexts, providing a basis for future research and practical strategy.

Antecedents and consequences of intellectual capital: a systematic review, integrated framework, and agenda for future research

AbstractThis study systematically reviews the fragmented field of Intellectual Capital (IC) to clarify its antecedents and outcomes. Using a hybrid method that combines bibliometric analysis and a framework-based approach, it examines 170 peer-reviewed articles, focusing on key articles, authors, countries, journals, and themes in IC research. The study introduces a comprehensive framework, summarizing the core elements of IC and providing a foundation for future theoretical, empirical, and conceptual research. Six main clusters were identified through co-citation analysis: three related to IC antecedents, particularly board gender diversity, and three concerning IC consequences, notably firm performance. This research maps out existing gaps in the literature and suggests integrated pathways for advancing IC knowledge. It contributes significantly to IC studies by synthesizing a vast array of literature into an integrated framework, offering new insights that both challenge and complement existing narratives. This framework not only elucidates IC's foundational aspects but also sets a strategic direction for future investigations. The findings underscore the evolving nature of IC research and highlight crucial antecedents and consequences. The study bridges academic research with practical applications, emphasizing IC's role in boosting firm competitiveness and value creation. While recognizing its methodological limitations, the study calls for a diversified perspective in future IC research, aiming to deepen the understanding of IC.

Thriving in scarcity: Harnessing intellectual capital for open frugal innovation

Private higher education institutions (PHEIs) are struggling to invest in the facilities, tools, and staff required to build a complete IR4.0 education ecosystem due to a lack of funding and technological resources. This research investigates the role of intellectual capital elements (Human, Relational, and Structural Capital) in promoting frugal innovation in Malaysian private universities utilizing knowledge-based theory. Using a quantitative research approach, we collected survey data from 308 respondents affiliated with Private Higher Education Institutions (PHEIs) in Malaysia. The study found that human capital is not statistically significant in its relationship with frugal innovation in higher education, while structural capital and relational capital do show significant relationships. These findings contribute to our understanding of intellectual capital's role in frugal innovation in Malaysian PHEIs.

The Effect of Intellectual Capital on the Financial Performance of Islamic and Conventional Life Insurance Companies in GCC and ASEAN

The objective of this study is to examine the association of intellectual capital with the financial performance of Islamic and conventional life insurance companies in the regions of the GCC and ASEAN. The study conducts an analysis to assess the association between intellectual capital, assessed explicitly by the value-added intellectual coefficient (VAIC) using Ordinary Least-Square Regression, and the financial performance of life insurance in the GCC and ASEAN through the panel analysis encompassing 4 GCC countries and 2 ASEAN, which encompasses of 26 conventional and 24 Islamic life insurance covering 2017-2021 period. The findings indicate a distinction between conventional and Islamic life insurance companies. The impact of intellectual capital in the context of conventional life insurance on financial performance is only affected by Capital Employed Efficiency. Conversely, financial performance is significantly affected by the intellectual capital elements of Islamic life insurance, except structural capital. Despite varying outcomes, conventional and Islamic life insurance correlation demonstrates a noteworthy impact of intellectual capital, except for structural capital, on financial performance.

Unveiling the nexus between intellectual capital and audit quality in accounting firms

With the frequent occurrence of corporate financial fraud cases in China, the audit quality (AQ) of accounting firms has attracted great attention. As a knowledge-intensive organization, the intellectual capital (IC) which represents the intangible assets seems closely related to AQ. The present study aims to investigate the relationship between IC with AQ among China’s top 100 accounting firms (CTAFs) and if the extent of association varies between IC components and AQ. Data were collected through a questionnaire survey with a total of 81 firms through their responsible official. The findings demonstrate that IC significantly affects AQ of CTAFs. Surprisingly, structural capital emerged as the strongest component of IC influencing AQ, followed by relational capital, spiritual capital, and human capital. These results suggest that improving any element of IC can lead to an improvement in AQ while distinguishing the varying degrees of association. This study acts as a trailblazer, by using primary data offering empirical evidence regarding the connection between IC and AQ within the landscape of CTAFs. The particular note is the illumination of varying impact levels across elements of IC, providing unique and applicable insights for future research and practitioners.

ОПЫТ УПРАВЛЕНИЯ ПРОЕКТОМ ЦИФРОВИЗАЦИИ В ФАРМАЦЕВТИЧЕСКОЙ ПРОИЗВОДСТВЕННОЙ КОМПАНИИ

The article presents key results of practical research: experience of management of digital transformation projects of business processes in pharmaceutical production company. The methodology of the study includes such tools as case-study, content and situational analysis, observation and expert assessment. On the example of the digitalization project of dietary supplement labeling, a design specificity has been identified, which can be taken into account by other pharmaceutical manufacturers in the implementation of digitalization of marking projects. Conclusions about significant role of digitalization projects in development of the company are made. The analyzed factors influencing the success of the project are externally and internally specific. The identified features of project implementation could be taken into account for subsequent replication of project experience, its integration into the intellectual capital elements of the organization. The accumulated project experience of the company reflects its potential in business transformation, supporting strategic growth of the company.

The Role of the Ceo's Educational Background on the Relationship Between Intellectual Capital and Performance Among Indonesian Listed Banks

The transition from a physical resource-based economy to a knowledge-based economy has encouraged researchers to look for new ways to measure intangible assets such as intellectual capital. This study tests and analyzes the effect of intellectual capital on company performance and the role of educational background in the influence of intellectual capital on the performance of banking companies listed on the Indonesian stock exchange for the period 2018-2022. This study uses secondary data obtained from the official website of the sample company. The number of samples in this study was 47 banks listed on the Indonesian Stock Exchange (IDX). The value-added intellectual coefficient (VAIC) method was used to measure the added value of intellectual capital. This study uses quantitative methods with panel data regression to analyze the effect of intellectual capital on company performance and the effect of managing directors’ educational background on the relationship between intellectual capital and company performance. These findings show how IC elements of intellectual capital affect financial performance. We discover that IC improves the ROA and ROE of Banking Companies Listed in Indonesia, data analysis results indicate that the educational background of the managing director has a varying impact on the relationship between intellectual capital (IC) and company performance, as measured by return on assets (ROA) but not to return on equity (ROE). To the best of the author’s knowledge. This is the first empirical study to evaluate the Role of a CEO's educational background in affecting Intellectual Capital in the performance of banking companies listed in Indonesia.

ВЛИЯНИЕ ИНТЕЛЛЕКТУАЛЬНОГО КАПИТАЛА НА ФОРМИРОВАНИЕ НАУКОЕМКОЙ ЭКОНОМИКИ ПСКОВСКОЙ ОБЛАСТИ

This article discusses the response to the challenges facing the country. The country’s resilience is linked to the sustainable development of its regions. The results of a review of the concepts of intellectual capital of the region, knowledge-intensive economy and high-tech production are presented. A model was selected and an assessment of the intellectual capital of the Pskov region for the period 2018–2021 was carried out. The analysis showed that the integral value of intellectual capital over this period tended to decrease. An analysis of the elements of intellectual capital was carried out and critical indicators were identified: educational and scientific potential. To create new products, it has been proposed to create two regional scientific and educational clusters in the Pskov region with the participation of scientific and pedagogical personnel and students. A mechanism for organizational and economic management of the cluster has been developed, which will help create conditions for increasing regional human capital.

Entrepreneurial Competencies Factors Influencing SMEs Entrepreneurial Performance in Malaysia: A Conceptual Framework

The number of new entrepreneurs in SMEs continues to rise around the world. The goal of the study was to examine the intellectual capital element of entrepreneurs, such as attitude, knowledge, business relationship and digitalization, through the lens of Intellectual Capital (IC) Theory, in order to better understand how these factors contribute to the performance of SMEs in Malaysia. This study was driven by the spectacular growth of entrepreneurs and a vacuum in the present business performance literature. Although the growth in numbers is increasing to certain extend, in contrast, in term of sustainability spectrum entrepreneurs in Malaysia are seeing a substantial drop in performance, which is leading to the closure of most businesses. The lack of entrepreneurial competencies due to weak intellectual capital elements perceived as the influencing factor to such an unwanted phenomenon. This study will assist entrepreneurs in developing platforms to improve their business by recognizing and refine their entrepreneurial competencies that matters to sustain, develop and perform well in their business and promote Malaysia's economy. The study concluded that entrepreneurial intellectual capital elements have a substantial impact on entrepreneurial performance, and that any economy aiming to develop and grow entrepreneurs should embrace this intellectual capital oriented elements discussed in this study for a greater entrepreneurial performance. Secondary sources of data evaluated in detail. The proposed procedure for the data collection for this study approached qualitatively with nominal group interview technique. Three nominal groups comprising of ten members each randomly may be selected from the list obtained from SME Corporations Malaysia for a face-to-face interview session to comprehend the reality of the scenario that being scrutinized and support the arguments. Provide the insight into intellectual capital factors that can help SME operators in Malaysia strengthen their entrepreneurial competencies and grow their businesses. Observe entrepreneurial traits such as attitude, knowledge, willingness to develop business relationship and digitalization, through the lens of Intellectual Capital (IC) Theory for better SME performance

Methods of Calculating the Indexes of Intellectual Capital of Organizations

Competitive functioning at the micro and macro levels of businesses in different industries creates the need to make changes in the assessment of the impact on the performance of companies of tangible and intangible assets, leading to an increase in the value of both products and companies. In this context, it is appropriate to measure and evaluate intellectual capital, which includes not only goodwill, shares and intellectual property, but also organizational aspects (strategy, database, network data), and relationships with customers, partners, etc. Scientists and economists have studied the issues of defining and measuring intellectual capital for more than 30 years, however, there is no unified approach yet.This study presents the results of the analysis of approaches to the definition of the concept of “intellectual capital”, its components and methods of calculating the indexes of intellectual capital of organizations.The purpose of the study is to determine the direction of development of research concerning the calculation of indexes of intellectual capital on the value of organizations and indexes reflecting the state of individual elements and subelements of intellectual capital.Empirical base and research methods. The issues of measuring intellectual capital are reflected in the works of Edvinsson (1997), Sweibi (2010), assessing its impact on the value of companies and the effectiveness of their activities operating in the developed countries - Zegala (2010), Clark (2011), Liu (2017) - and developing countries - Garanina (2010), Bayburina, Bykova (2012), Andreeva (2016) [1, 5] and other scientists. The works of these researchers formed the basis of the research conducted in this article. This study used general scientific methods such as comparison, deduction, induction and analysis.Results. The paper presents the results of the analysis and systematization of approaches to the definition of “intellectual capital” and its components, methods for calculating its indexes and assessing their impact on the financial results of companies. Currently, there is also a need for research to assess the mutual influence of individual elements of intellectual capital. In order to identify the industry specifics of the impact of intellectual capital components on the value of organizations, the methods given in the article should be tested separately using data from companies from different industries. When conducting an analysis, it is important to take into account factors related to the external environment of the company, such as the level of economic development of the country in which the company operates, as well as fluctuations in economic activity.Conclusion. The practical value of the paper lies in the possibility of applying its results in the process of making managerial decisions of organizations in various fields. The proposed options for identifying and calculating indexes can significantly affect the financial growth of organizations, complementing traditional approaches to maintaining and compiling accounting and financial statements, thereby expanding their overall strategic development.

Nexus between Intellectual Capital and Bank Productivity in India

This paper empirically investigates the influence of intellectual capital on changes in total factor productivity of 36 BSE-listed banks in India from 2005 to 2019. This study employs a two-stage analysis that begins by investigating changes in total factor productivity using the Malmquist Productivity Index estimated through Data Envelopment Analysis, and then computes intellectual capital and its sub-components within the Value Added Intellectual Coefficients model framework. Then, using the System Generalised Method of Moments, we investigate the impact of intellectual capital on changes in total factor productivity. According to our findings, productivity growth is primarily driven by efficiency changes rather than technological changes. Furthermore, regression results show that the intellectual capital index and its two sub-components, human capital and capital employed, have a strong positive impact on bank productivity. This research could help bank senior executives measure their productivity and intellectual capital, identify relevant intellectual capital elements that contribute to productivity and develop future policies to encourage and improve their intellectual potential. Furthermore, this is one of the few studies in the Indian context that examines the nexus between intellectual capital and productivity using the Malmquist Productivity Index.

Intellectual capital before and during COVID-19 in the hotel industry: the moderating role of tangible assets

PurposeThe study aims to assess the relative impact of intellectual capital (IC) as opposed to tangible assets on profitability and employee performance in hotels in Serbia before and during the coronavirus disease 2019 (COVID-19) pandemic.Design/methodology/approachThe current study was undertaken in 2019, the year before COVID-19, and 2020, the year of COVID-19's major impact. This study utilizes the Value-Added Intellectual Coefficient (VAIC) as a measure of efficient use of IC. Financial data were collected from 163 hotels in Serbia. Structural equation modeling (SEM) was used to test the proposed hypotheses.FindingsThe results revealed that IC was a relevant factor for both profitability and employee performance before and during the COVID-19. However, the study reveals a negative moderating effect of tangible capital efficiency (TCE), meaning that with the increase of TCE, the relationship between IC and performance becomes weaker.Research limitations/implicationsThe main limitation of the study is rooted in VAIC's ability to fully incorporate all elements of IC, leaving the relational capital out.Practical implicationsTo achieve better performance, hotel management should direct resources more towards IC and less toward tangible assets, which implies doing more with less.Originality/valueThe results indicate the importance of IC in a period of crisis for the industry and economy that are not recognized as knowledge intensive. To the best of the authors' knowledge, no other study has attempted to assess the relative contribution of tangible assets and IC before and during the COVID-19 pandemic.

Maqashid Sharia Performance In Indonesian Islamic Banks: The Role Of Intellectual Capital And Sharia Supervisory Boards Cross-Membership And Gender Diversity

This study will examine the link between intellectual capital and maqashid sharia performance as well as the moderating effects of cross-membership and gender diversity of the sharia supervisory board to improve the influence of intellectual capital on maqashid sharia performance. The secondary source of data for this study was the yearly financial statements listed in the Indonesian Financial Services Authority between 2008 and 2020. The data analysis method used in this inquiry was a panel data regression model. The analytical techniques employed in this work include descriptive statistical tests, preliminary tests, and hypothesis testing. According to the results of the three preliminary tests that were used to develop the panel data regression model, this study uses the random effect model in models 1 and 2 to evaluate the relationship between intellectual capital elements and maqashid sharia performance. Cross-membership and the gender of SSB women are moderating factors. The results of this study show that intellectual capital influences Indonesian Islamic Banks' performance following maqashid sharia positively. This suggests that making better use of intellectual capital can improve a company's maqashid sharia performance. Cross-membership has a negative impact on maqashid sharia's performance, demonstrating that it will hinder the board's ability to focus and function effectively, which will lead to a decrease maqashid sharia performance. The results of this study demonstrate that the average female representation on the sharia supervisory board is only 4% of the total samples, meaning that it cannot affect maqashid sharia performance. Therefore, the female gender of the sharia supervisory board has no impact on maqashid sharia performance. In this study, there was no empirical support for the claim that gender diversity and cross-membership on sharia supervisory boards may increase intellectual capital for maqashid sharia performance.

НЕФИНАНСОВЫЕ ФАКТОРЫ ЭФФЕКТИВНОСТИ ФАРМАЦЕВТИЧЕСКИХ КОМПАНИЙ В РОССИИ

The development of the pharmaceutical industry is inextricably linked with the development of new types of drugs, the introduction of new technologies, the provision of scientific research in bioengineering and biotechnology, which can be ensured through the continuous development of intellectual capital. Intellectual capital is a capacious and ambiguous concept that, other things equal, is explained by the presence of professional skills and competencies of employees that cannot be separated from them and, therefore, are reflected in the financial statements. For a long time, researchers have been evaluating the impact of intellectual capital on the performance and value of companies in various sectors of economy. This article attempts to look at the problem more broadly by adding the factors inherent in sustainable development and competitive advantages of the company: business model and business strategy to the traditional elements of intellectual capital. The purpose of the work is to assess 137the impact of business strategy, business model and intellectual capital components on the performance of pharmaceutical companies in Russia. The object of the study is the financial and non-financial reporting of Russian pharmaceutical companies. The subject is establishing the relationship between the disclosure of information on intellectual capital and financial performance, taking into account the business strategy and business model of the company. The methodological basis is the statistical and economic method, namely, the regression of panel data with fixed effects. The results show that most large companies in pharmaceutical sector adhere to the business strategy of “analyzers” and choose the business model of producers of their own drugs. The findings indicate no connection between the company's business strategy and business model and the performance of pharmaceutical companies. Elements of IC have been established that provide competitive advantages for the company in pharmaceutical industry.

The Influence of Intellectual Capital on Earnings Quality: Evidence from Firms Listed on the Cambodia Securities Exchange

ABSTRACT This study aims to determine whether the efficiency of intellectual capital (IC) and each of its three constituents—human capital efficiency (HCE), capital employed efficiency (CEE), and structural capital efficiency (SCE)—can generate better earnings quality (EQ) in an emerging market. Drawing on the Pulic (2004) model for measuring the efficiency of IC and the absolute value of discretionary accruals as a proxy for EQ, the study analyzes the data of a sample of Cambodian nonfinancial firms listed on the Cambodian Securities Exchange (CSX) during the period from 2013 to 2021. The empirical results indicated that Cambodian firms active in utilizing IC has more tendency to provide reports of high quality. Besides, it is shown that each of the three elements of IC significantly and positively influences EQ. Meanwhile, SCE has the most significant impact among the three components. Those results offer an enhanced understanding of IC-utilizing and EQ practices that might be in favor of investors, regulatory bodies, and scholars. This study is among the first studies investigating Cambodian firms for IC and EQ topics. Keywords: : Earnings quality; Value-added intellectual coefficient; Human capital efficiency; Employed capital efficiency; Structural capital efficiency

Leveraging knowledge management systems for business modelling in technology start-ups: an exploratory study

ABSTRACT Business model (BM) creation and development for Technological Start-ups (TSs) strongly grounds on knowledge assets. Despite such relevance, it emerges the paucity of research on BM within the knowledge-based research streams, and specifically for TSs that need a proper digital-enabled knowledge management system (KMS) to ensure the effective organisation of their knowledge assets. To investigate such issues, a study on the relationships between BM and knowledge assets grouped by the Intellectual Capital (IC) elements has been carried out by submitting a semi-structured questionnaire to a sample of 52 Italian TSs. Results show that both the foundation and innovation of BM rely mainly on human capital, followed by relational and structural capital. The study identifies also the trajectories that TSs follow to define their BM by leveraging their IC, and the enabling conditions. The paper ends with a discussion about how digital-enabled KMS can support the exploitation of IC for TSs.

Оценка интеллектуального капитала организации в условиях цифровизации

Development of intellectual capital is becoming increasingly important due to the impact of digitalization and development of the digital economy. The review of domestic and foreign studies made it possible to conclude that there are problems in existing approaches to the assessment of intellectual capital at the present stage. As the main drawback of foreign studies, one can note concentrating on the narrow aspect of the impact of investments in intangible assets on the performance of an organization with an emphasis on the use of methods of mathematical statistics. As the main drawback of the research of the Russian scientists, there can be noted their excessive theoretical interest, abstract and fragmented concepts of the knowledge economy and intellectual capital as its key resource. There appears a need to clarify the indicators for assessing intellectual capital, which will make it possible to more effectively implement managerial influences on the processes of its development. Under the influence of digitalization trends the development of intellectual capital is undergoing changes, and in order to improve the effectiveness of its management, it is necessary to take into account the change in the composition of assessment indicators. There has been found the need to improve the methodology for assessing intellectual capital, allowing to take into account the nature of changes in the process of its development in the digital economy. A review of modern views on the essence of the phenomenon of intellectual capital and digitalization trends was made. The specifics of the formation of elements of intellectual capital under the influence of the identified features of digitalization has been determined. The composition of indicators for assessing the formation of intellectual capital elements in accordance with digitalization trends has been specified. Based on the results of a survey of managers of small and medium-sized businesses in the Primorsky Kray, the modified methodology was assessed for the possibility of its practical application. The results obtained can be used to form an idea of what processes it is currently expedient to manage in the first place in order to increase the efficiency of the company’s management systems.

Challenging the IC Theory: Suggestions for Some Ways Forward

Understanding how knowledge and related resources has permeated scholasticism and an intellectual capital (IC)-based view of the firm, and it has gained increasing weight in contemporary management literature. Manifold impacts of IC on organizational performance have been widely evidenced with management mechanisms for various IC dimensions to be found in most established organizations. As research is a strongly path-dependent activity, it seems natural that IC research may lean on classical frameworks and conceptualizations from prior decades. However, this consideration may be problematic, since large-scale changes in companies’ operating environments, such as digitalization, a crisis in sustainability, as well as reaction to the COVID-19 pandemic through remote-working initiatives. Consequently, call for new knowledge resources comes into play naturally. In this paper, an argument is made that the normative approaches for conceptualizing IC and its performance relevance must be updated. Further, we suggest that the new post-pandemic world of enterprise calls for novel understandings relevant to IC. To spur new thinking that offers a way forward, a theoretical model is proposed for a revised understanding of IC and its role in organizational viability. Important new issues are examined as related to various IC elements. The paper contributes to IC research by constructing a revised model of IC useful for generating topical research models suitable for development and testing in future theoretical and empirical studies. A set of potential research questions is outlined to guide additional research.