Intellectual Capital Components Research Articles

Does Intellectual Capital Efficiency Translate in the Post-pandemic Era for Islamic Banks in Indonesia?

PURPOSE: This study aims to identify the key determinants of financial performance in Islamic banks, specifically focusing on the Financing to Deposit Ratio (FDR) and Capital Adequacy Ratio (CAR). Additionally, it explores the applicability of these determinants in a post-pandemic environment. DESIGN/METHODOLOGY/APPROACH: The research utilizes data from two prominent Indonesian Islamic banks, Bank Syariah Indonesia (BSI) and Bank Muamalah Indonesia (BMI), for the pre-pandemic period (2016-2020). Ordinary Least Squares (OLS) regression analysis is employed to investigate the influence of Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE), and Capital Employed Efficiency (CEE) on both FDR and CAR. FINDINGS: The model analyzing determinants of FDR explains a significant portion (48.99%) of the variance. Interestingly, only Capital Employed Efficiency (CEE) exhibits a statistically significant negative relationship with FDR. Conversely, the model for CAR lacks a statistically significant fit. ORIGINALITY: This research contributes by examining the impact of intellectual capital components (HCE, SCE, CEE) on financial performance ratios (FDR, CAR) within the Indonesian Islamic banking context. RESEARCH LIMITATIONS: The study is limited to data from two Indonesian banks during a specific timeframe. Further research with a broader sample size and encompassing the post-pandemic era would enhance generalizability. PRACTICAL IMPLICATIONS: The findings offer valuable insights for stakeholders in Indonesian Islamic banking, particularly regarding the importance of efficient capital utilization for managing financing activities and maintaining healthy FDR levels. SOCIAL IMPLICATIONS: By enhancing the financial performance of Islamic banks, this research indirectly contributes to the development of a more robust Islamic financial system that caters to the ethical and social banking needs of the community.

Digital resilience in the internationalization of small and medium companies: how does it work?

Purpose Digital technologies over time are becoming increasingly pervasive and relatively affordable, finding a large diffusion in Small and Medium Enterprises (SMEs) also for internationalization purposes. However, less is known about the specific mechanisms by which this can be achieved. Specifically, we focus on how SMEs can face the international environment, leveraging digital technologies and thanks to their intellectual capital (IC).Design/methodology/approach We analyze the relationship between digital technologies and the internationalization of SMEs, exploring the mediating role of IC in its three dimensions: human, relational and innovation capital, and assessing the possible moderating effects posed by international institutional conditions, specifically the Sino-US trade frictions. The relationships are tested using a sample of companies listed on China’s A-share Growth Enterprise Market (GEM) from 2010 to 2021.Findings Digital technologies help to internationalize SMEs. However, this positive relationship is affected (mediated) by the presence of an already consolidated IC. In addition, the institutional conditions of the international market, such as the Sino-US trade friction, moderate the components of IC differently. Specifically, the overall mediating effect of human and relational capital is boosted, while this does not happen for innovation capital.Originality/value First, this study contributes to the literature on organizational resilience, especially digital resilience, confirming its validity in the context of internationalization and, in particular, those processes adopted by SMEs. Second, we clarify the mechanisms through which digital technologies exert their impact on the process of internationalization and in particular the prominent necessity of having IC. Third, our conclusions enrich the understanding of how IC components react to turbulence in international markets.

Leveraging intellectual capital for building a supply chain circular economy system: A knowledge-based view

Organizations are inevitably pursuing circular economy goals through a supply chain approach. This paper examines the impact of intellectual capital on supply chain circular economy (SCCE) systems made up of a closed-loop supply chain (CLSC) and a reverse omnichannel. By employing the knowledge-based view, this paper constructed the relationship between intellectual capital and SCCE systems. We tested the proposed hypotheses by employing structural equation modeling on a dataset collected from 193 Chinese manufacturing firms. Finally, we used a bootstrap method and tested the indirect effect of intellectual capital components on SCCE systems. We found that intellectual capital both directly and indirectly contributed to SCCE systems. Human capital and structural capital, in particular, were positively associated with CLSC, whereas social capital was strongly related to reverse omnichannel. However, human capital and structural capital had no significant relationship with reverse omnichannel, and social capital had no significant impact on CLSC. We also found that structural capital mediated the human capital-CLSC association, and social capital played a mediating role between human capital and reverse omnichannel. Drawing on the knowledge-based view, our study offers insights into the intellectual capital literature, circular economy literature, and supply chain management literature. The findings add to our existing understanding of how existing knowledge of the organization can be leveraged for better operations by CLSC and improved services by reverse omnichannel.

Empowering Bumiputra SMEs Through Intellectual Capital: Lessons from a Developing Nation

Small and medium-sized enterprises (SMEs) play a vital role in the economic development of countries by contributing to the expansion of the export sector's GDP, generating a significant number of employment opportunities, and promoting the development of social infrastructure. Despite their crucial role, SMEs in Malaysia have not received sufficient attention in terms of intellectual capital research. This study aims to address this gap in the current literature by examining the intellectual capital of Bumiputra SMEs in a developing country. The primary objective of this study is to assess the impact of intellectual capital components on the performance of Bumiputra SMEs. The data gathering process will involve qualitative techniques, specifically NVivo-facilitated interview sessions. The insights derived from these sessions will provide SME firm owners with a comprehensive understanding of how intellectual capital influences company performance, empowering them to make informed decisions. This study relies on two firm owners as the main sources of information during the interview sessions. The findings reveal that various elements of intellectual capital, such as human capital, structural capital, customer capital, social capital, technological capital, and spiritual capital, significantly influence the commercial performance of Bumiputra SME entrepreneurs. The study's conclusions have a notable and positive impact on the theoretical and practical aspects of Bumiputra SME businesses by expanding the understanding of how intellectual capital serves as a strategic asset for SMEs and by incorporating resource-based, knowledge-based, and social capital frameworks. The decision of employing only a small number of participants was determined by limitations on time, money, and accessibility. Nevertheless, only a small number of representations can yield significant results, particularly in qualitative studies where data accuracy and breadth are crucial.

Intellectual capital in Galician common forests

Forest communities around the world are becoming increasingly involved in sustainable forest management and intellectual capital view can orient the outcome. This paper aims to identify the principal components of intellectual capital, in its three dimensions; human, structural and relational (internal and external) capital, and their relationships in the governance of communal forests. Focusing on Galician communal forests, in north-west Spain, a survey was conducted among community representatives, analysing using principal components how they structure their intellectual capital, and based on these, through an oblimin (0.5) rotation. Linear correlations among these components were assessed to determine the relationship of the components with each other. Galician communal forests present a composition of intellectual capital components which differ from those of for-profit firms and are closer to those of other social entities. The complex interrelations between the different elements of intellectual capital suggest different typologies of forest communities.

Intellectual capital and asset quality: A nonlinear investigation in the Turkish Banking sector

This study aims to investigate the intricate relationship between intellectual capital and asset quality within the context of the Turkish banking sector to determine the optimal level of intellectual capital investment that can enhance the asset quality of deposit banks. The study relies on panel data regression analysis to explore this complex relationship, and its dataset encompasses 22 deposit banks over 17 years, from 2005 to 2021. The study provides compelling evidence of a nonlinear relationship between intellectual capital and asset quality. It pinpoints an optimal threshold for intellectual capital investments, beyond which further increases can erode asset quality. Furthermore, the study identifies specific intellectual capital components that impact the asset quality of state-owned, privately owned, and foreign deposit banks differently. The findings indicate that optimizing human capital efficiency and capital employed efficiency is critical for enhancing the asset quality of deposit banks. In contrast, the significance of structural and relational capital efficiency may vary, demanding a careful balance of investment strategies.

Voluntary Intellectual Capital Disclosure and Information Asymmetry: Study of Indian Firms

This article develops a disclosure index to examine the extent and quality of intellectual capital disclosure in Indian firms. Furthermore, it assesses the gap between stakeholder expectations and industry disclosure procedures by conducting five years database analysis. To analyze the extent and quality of intellectual capital disclosure, a content analysis technique was applied to a sample of 30 non-financial firms listed on the Bombay Stock Exchange for five years, 2018–2022. A disclosure index of 42 items was constructed based on previous studies under three intellectual capital categories: Structural Capital, Relational Capital, and Human Capital. It was found that Indian companies had a low level of intellectual capital disclosure, although it increased by 28% from 2018 to 2022. Also, there was an upward movement in the disclosure of all intellectual capital components. Structural capital is disclosed by the number of organizations, whereas human capital is being disclosed the lowest. This study developed a new disclosure index consisting of 42 intellectual capital items based on extant research conferred by experts. In addition, the study considered a Sensex non-financial company for the analysis. Third, this study uses graphs to represent disclosure quality.

Evaluating the Intellectual Capital of Intensively Tourism-Dependent Countries Between, Prior, and During the COVID-19 Pandemic

The tourism industry has grappled with the challenges posed by the onset of the coronavirus disease (COVID-19) since the start of 2020, experiencing a complete lockdown that profoundly affected travel activities. This viral outbreak had a critical impact on both the financial and non-financial aspects of life, including the intellectual capital (IC) of the tourism and hospitality sectors. However, there is a scarcity of studies addressing this issue within the context of tourism-related businesses. Thus, this paper aims to investigate the changes in the overall IC and its components before and during the COVID-19 pandemic, with a specific focus on understanding the transformation of IC in the tourism industry of Thailand, a country that is highly dependent on tourism. The study involved 37 tourism-related companies listed on the Stock Exchange of Thailand (SET). Organizational data from financial and annual reports published between 2019 and 2020 were collected for analysis. The assessment of value added intellectual capital (VAICTM) was employed to evaluate the performance of the overall IC and its components during the pandemic. The results, based on the testing of four hypotheses, indicated that most hypotheses were accepted, signifying a substantial transformation in the overall IC performance of tourism-related companies during the pandemic crisis. This transformation was observed in the IC components of physical and human capitals. However, the structural capital was the only IC component that did not experience a significant impact from COVID-19. To comprehend the reasons and effects of the IC transformations during the pandemic, this study delved into the relevant literature. Additionally, the paper includes implications to support firms in preparing for future challenges.

How do green intellectual and co-creational capitals drive artificial intelligence innovation and green innovation in start-ups?

PurposeThis research examines the relationship between the green version of intellectual capital (IC) (measured through green versions of human, structural and relational capitals (GHC, GSC and GRC)), co-creational capital (CC), green innovation (GI), technological innovation (TI) (measured through artificial intelligence) and start-up competitive advantage (SCA).Design/methodology/approachAn online questionnaire collected data from 275 participants. To test the hypotheses, the data were analyzed using SmartPLS.FindingsThe results confirmed the positive influence of GSC and CC on TI and GI, GRC with GI and that of GI and TI with SCA. The results also reveal that IC can influence innovation and describe how innovation can drive the competitive advantage (CA) of start-ups.Research limitations/implicationsThis self-report study examines the associations by collecting data at one point in time, which results in methodological limitations regarding the generalization of the results. The second limitation is that the findings are limited to start-ups.Originality/valueThis research work examined a model that combined three components of green IC, customer capital, two forms of innovation and CA. These associations have not been previously examined yet can provide useful insight into what drives green and TIs and how they further influence competitiveness. This study provides unique inferences that improve the value of the literature on IC and innovation, using start-ups as context.

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.

Intellectual Capital and Sustainable Organizational Performance in Banking Sector of Pakistan: Examine the Mediating Role of Organizational Innovation

Purpose: 21st century witnesses a great shift from production-oriented businesses to knowledge oriented and technology-driven businesses, where intangible resources play a pivotal role in value creation for the organizations. In this dynamic intellectual capital   and competitive environment, global economy is shifting from a tangible resource economy to an intangible resource economy. The aim of this study was to investigate how the intellectual capital components and organizational innovation influence sustainable organizational performance.
 Design/Methodology/Approach: A survey was conducted to collect data from the banking sector professionals working in Pakistan. Simple random technique was employed, 329 responses were collected. The data was analyzed through SmartPLS.
 Findings: Results reveals that intellectual capital components have positive and significant association with organizational innovation and sustainable organizational performance. Current study also demonstrates the partial mediation of organizational innovation between the association of intellectual capital components and sustainable organizational performance.
 Implications/Originality/Value: It is concluded that intellectual capital and its components help the organizations to enhance their organizational innovation, which would ultimately boost sustainable organizational performance. Current study findings would provide useful insights for researchers, managers, and practitioners.

The Influence of the Competence Component of Intellectual Capital and Financial Efficiency on the Capitalization of Russian Manufacturing Companies

The object of the study is Russian industrial companies whose shares are traded on the Moscow Exchange. The study’s subject is financial and financial connections in the field of using intellectual capital’s competence component as an important factor in business growth. The relevance of the study is important for the increasing role of intellectual capital and its components as a determining factor in business growth, as well as the need to identify new determinants that influence company capitalization. In the context of overcoming the consequences of sanctions, intellectualization and digitalization of the economy, the problem of the study of the dependency of the capitalization of Russian companies on the state of the components of intellectual capital is significantly updated. The purpose of the study is to assess and model the impact of the competence component of intellectual capital and financial efficiency on the capitalization of Russian manufacturing companies.Methods of comparative and statistical analysis, calculation of financial and economic indicators, correlation and regression analysis, and the Farrar-Glauber test were used. According to correlation analysis, the capitalization of Russian public companies in the production sector is influenced by an internal factor such as patent activity. The constructed multifactor linear regression model allows for the conclusion that a 1% increase in the number of patents raises the company’s market capitalization by 1.23% while all other factors remain constant. It is concluded that in the Russian market the importance of material assets as a factor in business growth significantly prevails over the influence of the competence component of intellectual capital. Recommendations are given, the implementation of which in the practice of Russian manufacturing companies will maximize their capitalization by taking into account the financial and economic advantages from the use of the competence component of intellectual capital.

THE EFFECT OF INTELLECTUAL CAPITAL ON OPERATIONAL PERFORMANCE AMONG DEPOSIT MONEY BANKS: MEDIATED BY INNOVATION

The banking sector, like many other service industries, is frequently characterized by a high level of rivalry, driving enterprises to come up with innovative ideas and strategies to improve their chances for success. Over the years, Nigerian Deposit Money Banks' operational efficiency has been bad in terms of per customer service timing, time spent at the bank, and an unreliable network, among other things. This tendency might be linked to a lack of investment in the bank's intangible assets, often known as intellectual capital. This study examined the mediating effect of innovation in the relationship between intellectual capital (IC) and operational performance (OP) of deposit money banks (DMBs) in the Nigerian Banking sector. The study was built on the idea of Resource Base View Theory (RBV) and Human Capital Theory. Three dimensions of intellectual capital namely: Human Capital (HC), Structural Capital (SC) and Relational Capital (RC) were used. Cross-sectional survey design was adopted in this study and structured questionnaire was used to collect data from the operational employees of all the 13 DMBs operating in Jalingo, Taraba state, Nigeria. 399 questionnaires were distributed out of which 357 usable questionnaires were retrieved. The data was analyzed using PLS-SEM. Results of the analysis showed that all the components of IC (HC, SC and RC) have significant positive effect on operational performance of DMBs in Jalingo with human capital (HC) having the highest influence. In addition, results of the analysis also show that innovation mediates the relationship between intellectual capital and operational performance of DMBs. The study concludes that innovation (INV) plays a mediating role in the relationship between intellectual capital and operational performance of DMBs.

Intellectual Capital and Business Model Innovation: Boosting Brand Equity through SME Food Outlets’ Entrepreneurial Efforts

The online food delivery industry in Malaysia has been gaining traction among the local community. The adoption process has been accelerated by the Covid-19 pandemic as the government has imposed movement restrictions throughout the country. This has increased the importance of efficient food delivery services to residential areas through a seamless ordering process. This industry operates within the larger umbrella of the sharing economy, along with ride hailing services, co-working space, and other markets. The research surrounding these industries have been steadily increasing to include the viability of these business models and consumer acceptance of this disruption towards existing business models. However, there is little research from the perspective of the service providers such as the food outlet operators in this case. This paper will use Malaysian SME food outlets as a unit of analysis, which were selected from the lists of local merchants operating with Grabfood and Food panda, the two largest food delivery aggregators in the country. The first research objective is to understand the impact of intellectual capital components on business model innovation. Intellectual capital comprises of three elements. This includes structural capital, relational capital, and human capital. The second objective is to investigate the impacts that business model innovation activities have on a firm’s brand equity. Finally, the study will examine if business model innovation activities have a mediating effect between intellectual capital components and brand equity. The results of the study indicate that intellectual capital has a significant impact on the success of business model innovation activities, which also impact brand equity significantly. Furthermore, a mediating effect was also present in this study. The result of this study will contribute to the rapidly growing industry, which is also listed as a key economic growth area (KEGA) under the Shared Prosperity Vision 2030 in Malaysia.

ИНТЕЛЛЕКТУАЛЬНЫЙ КАПИТАЛ: ПОНЯТИЕ, ОСОБЕННОСТИ, ОЦЕНКА

This article analyzes various interpretations of the concept of "intellectual capital", and identifies approaches to its definition. The relationship between the concepts of "intellectual capital" and "human capital" is studied. The components of intellectual capital are revealed. The main methods of its evaluation are considered

Impact of Intellectual Capital on Financial Performance of Listed Oil and Gas Firms in Nigeria

This paper examines the impact of intellectual capital on financial performance of listed firms in Nigeria. To achieve this objective; quantitative research design was employed. Data were generated from the annual reports and accounts of the sampled listed oil and gas companies from 2016-2020. The period is chosen and believes to be adequate in providing insight on the inflationary trends which the industry experienced. Similarly, the period of five years selected is in line with the studies of Muhammad and Rashid, 2015 as well as Iyande, 2018.  Intellectual Capital as independent variable was measured by its components (HCE, SCE and CEE) while financial performance being the dependent variable was measured by NPM and ROE. Regression technique was used as tools of data analysis and the findings establish that the independent variables (HCE, SCE and CEE) have significant positive impact on the oil and gas companies’ Financial Performance proxies by NPM and ROE. The regression results show R-square of 86.1% and 59.4% for NPM and ROE models respectively. This implies that the model is fit and the explanatory variables are properly selected and account for the substantial value of the corporate profitability. Hence, the paper recommends that listed oil and gas companies in Nigeria should improve their efforts to boost the value of their intellectual capital for its crucial impact on NPM and ROE. This can be achieved through maximization of market value created, intellectual capital return and more investment in intellectual capital components, particularly human, structural and relational/customer capital.

The Relationship between Intellectual Capital and Entrepreneurship in Private Higher Education Institutions in Benghazi – Libya

The study aims to addressing and defining the concept of intellectual capital and its relation to entrepreneurship in business organizations. Also, to identify the reality of the performance of educational institutions in Benghazi and assess the level of interest in the requirements of the transition to the adoption of intellectual capital as one of the elements of important assets. In addition to reaching results that may help to achieve entrepreneurship for the study sample as well as provide a proposed vision for development. The study population included the members of the teaching staff of the medical colleges at the Libyan of Medical Sciences University for the period from December 2022 to February 2023. The data for this study were collected by distributing a questionnaire form on a random sample of the study population. The study variables included intellectual capital in its three components as an independent variable, and entrepreneurship as a dependent variable. The statistical program SPSS was also used to analyze the data obtained. The results showed that there is a statistically significant correlation between intellectual capital and entrepreneurship, which led to acceptance of the null hypothesis and rejection of the alternative hypothesis. The study also recommended expanding the study to include the other private universities in Libya, as well as conducting such studies to include Libyan business organizations. In addition, to employing intellectual capital components in business organizations more effectively, in order to enhance their positive impact in achieving entrepreneurship.

Intellectual capital and bank’s performance: a cross-national approach

Purpose This study aims to identify the impact of intellectual capital (IC) on the bank’s performance using a cross-country approach with India and Gulf Cooperation Council (GCC) countries using the Skandia navigator model (SNM). Design/methodology/approach This study uses a mixed-methods research approach by taking financial and non-financial measures to assess the impact of the IC on the bank’s performance using the SNM. The study implies an analysis of the data from the top ten banks in India and twenty banks in GCC countries. The selection was done based on the volume of the bank’s business for three years (2019–2020, 2020–2021 and 2021–2022). Findings The research has three main findings: there is a positive impact of IC on the bank’s performance; amongst the factors of SNM, there is a direct impact of human capital and customer focus on the performance of the selected banks in both India and GCC countries; and the other factors of SNM such as structural capital and process focus, renewal and development focus also affect the selected banks. Research limitations/implications The outcomes of the research may be useful for policymakers in India and GCC countries, as it identifies IC components that have a significant impact on the bank’s performance. This might enable them to develop policies that foster such factors, which, consequently, will improve the performance of the banks in the selected countries. Originality/value This study is an attempt to fill the gap in the existing literature on IC and bank’s performance for two different types of countries using the SNM.

Relationship between Intellectual Capital, Firm Performance and Leverage with Firm Values: Empirical Evident from Indonesia

The aim of this study is to investigate the relationship between the Value Added Intellectual Capital (VAIC) components, Firm Performance and leverage on Firm Value. The validity of Firm Value measurements will be tested using Tobin's Q, Price Earnings per Share (PER), and Price to Book Value (PBV) with Assets as a control variable. The research design is explanatory research through hypothesis formulation, using panel regression. The research population is 122 manufacturing industries are listed on the Indonesian capital market, with a sample N valid of 277, observation period 2018-2020. Based on the robustness test, the model fits when the firm value uses Tobins'Q and PBV. Research findings show that Capital Employee Efficiency (CEE) and Return on Equity (ROE) positively influence Tobin'sQ. On the other hand, Firm Performance (ROA) positively influences firm value (PBV), Net Profit Margin (NPM) and leverage (DAR) negatively influence PBV. The inconsistency in research results on the influence of IC, Firm Performance, and Leverage on firm value is more caused by different measurement models. Therefore, in interpreting the relationship patterns of IC, Firm Performance and Leverage on Firm Value, must carefully based on the measurement characteristics and underlying concepts. IC, Firm Performance and Leverage substantially influence firm value, supporting previous research.

How Intellectual Capital Can Develop Innovation And Performance Of Accounting Study Program?

Purpose: The purpose of this study is to explore the role of intellectual capital in developing innovation and performance of accounting study programs in Indonesia Methodology/approach: This type of research is qualitatively interpretive. Because the researcher understands the meaning contained in the interpretation of key informants. Findings: Human Capital is a key factor for intellectual capital to develop innovation and performance of accounting study programs.  IC, both integrated and individually, plays a role in improving the performance of IAPS 4.0-based study programs Practical implications: The results of this research can be used by the head of the accounting study program in achieving superior accreditation based on IAPS 4.0, namely by utilizing the role of intellectual capital in developing innovation and performance. Originality/value: The originality of this research is to explore the intellectual capital component associated with the innovation component and the performance component of the IAPS 4.0-based accounting study program. This research also explores basic theories such as role theory, human capital theory, and the resources-based theory.