Intellectual Capital Performance Research Articles

Relationship between corporate governance and intellectual capital: Evidence from Jordan

The objective of this study is to examine the relationship between corporate governance and intellectual capital within Jordanian manufacturing firms. This study used a sample of Jordanian manufacturing firms and applied regression analysis to test the effects of board size, executive director duality, percentage of independent directors, and ownership concentration on intelligence capital performance. Thus, 64 Jordanian listed manufacturing firms represent the study sample for the study period (2014–2022). The study employs advanced statistical methods to evaluate how these governance mechanisms affect intellectual capital, including human, structural, and relational capital. The study results indicate that the board size and CEO duality had no significant impact on intellectual capital performance. A positive significant determinant is the firm performance measured by earnings per share with a coefficient estimate of 6.331 at p-value <0.0. The significant positive effect of firm performance on intellectual capital performance indicates that financial health is an important driver of intellectual capital utilization. Good firms are likely to have more resources to invest in human capital, technology, and innovation, which are necessary components of intellectual capital. Future research should continue to explore these dynamics across different contexts to inform more effective governance and management practices.

The Impact of Intellectual Capital on Enterprise Performance in Saudi Arabia: Literature Review of Empirical Research

Physical assets such as buildings, plants, and so on, are important factors in the production era, but their importance has decreased with increased the importance of intangible assets in the knowledge era. In the knowledge-based economy, intellectual capital (IC) is one of the most important assets in an enterprise for achieving sustainable competitive advantages. As a result, research on the correlation between IC and enterprise performance (EP) and its role in achieving competitive advantage has become one of the most controversial topics in accounting globally. The findings of the empirical research have been inconsistent; there is no consensus on the effect of IC on the enterprise's performance due to the different definitions and methods of measuring IC used among researchers. The paper focuses on reviewing empirical research about the effect of IC on EP in Saudi Arabia, aiming at a presentation of recent developments and a discussion of the direction for future research. This paper is the first study to review empirical research on IC and EP in the Saudi context.

Exploring the mediating effect of intellectual capital on the relationship between ethical leadership and innovative performance

PurposeThe study examines the role of ethical leadership in the innovative performance of employees. Further, the purpose of the study is to investigate the mediating effect of human capital and social capital on the relationship between ethical leadership and the innovative performance of employees.Design/methodology/approachThe study collected primary data from 386 managerial-level employees of information technology (IT) companies in the northern region of India. Structural equation modelling (SEM) was used to analyse the data and derive the direct and indirect effects.FindingsThe findings indicate a significant positive impact of ethical leadership on the innovative performance of employees. Further, it was found that ethical leadership has both direct and indirect effects on the innovative performance of employees, where the indirect effect was mediated through intellectual capital (IC). The research confirms that IC and ethical leadership are crucial resources for fostering a knowledge-driven culture and innovative performance amongst employees.Originality/valueThe research has made a novel attempt to explore the interplay between ethical leadership, IC and innovative performance in the Indian context. Further, the study provides actionable strategies for business leaders to optimise business processes and encourage innovative practices amongst employees in the company.

Pengaruh Struktur Kepemilikan dan Ukuran Perusahaan Terhadap Kinerja Intellectual Capital

The focus of the research is how a company's ownership structure and size impact intellectual capital. This research uses multiple linear regression and purposive sampling to examine 37 companies listed on the Indonesia Stock Exchange (BEI) in 2022. Intellectual capital is not affected by company size, institutional ownership, or foreign ownership; however, management ownership influences 5%. Those who wish to conduct further research can use this research as a reference regarding ownership structure and company size on intellectual capital performance.

Gender diversity, intellectual capital, and family ownership: An empirical test of Kanter's hypothesis

AbstractThis study examines the relationship between gender diversity and intellectual capital performance, and moderating role of family ownership on this relationship. The study used 3730 firm‐year observations of 307 nonfinancial firms listed on Pakistan Stock Exchange over the period 2008–2020 and employed ordinary least squares regression analysis to test the hypotheses. More specifically, the study used group composition (skewed board, tilted board, and balanced board) to examine multiple significance levels of gender diversity on boards, and used five measures (modified value‐added intellectual coefficient, human capital efficiency, structural capital efficiency, relational capital efficiency, and capital employed efficiency) of intellectual capital performance. Using lens of agency theory and resource dependence theory, we found that gender diversity positively influences intellectual capital performance, however, the strongest impact is apparent in case of balanced board. Moreover, family ownership positively influences this relationship. Our study complements the efforts of policy makers by providing empirical support for the mandatory placement of females on boards and urge them to increase number of females on corporate boards to derive maximum benefits of female directors. In addition, our results recommend the enhancement of the professional skills of women work force to ensure their maximum participation in the corporate sector.

Does intellectual capital reduce the probability of default?

PurposeThis study aims to examine the impact of intellectual capital (IC) on default risk in Indian companies listed on the National Stock Exchange.Design/methodology/approachThis study applies panel data regression analysis to derive a relationship between IC and default risk for the sample period 2013–2022. The value-added intellectual coefficient (VAIC) of Pulic (2000) has been applied to measure IC performance, and default risk is estimated using the revised Z-score model of Altman (2000).FindingsThe results revealed a positive association between Z-score and VAIC. It implies that a higher value of VAIC improves financial stability and leads to a lower likelihood of default. The findings further suggest that new default forecasting models can be experimented with IC indicators for better default prediction.Practical implicationsThe findings can have implications for investors and banks. This paper provides evidence of IC performance in improving the financial solvency of firms. Investors and financial institutions should invest their resources in a healthy firm that effectively manages and invests in their IC. It will eventually award investors and creditors high returns through efficient value-creation processes.Originality/valueThis study provides evidence of IC performance in improving the financial solvency of Indian high-defaulting firms, which lacks sufficient evidence in this domain of research. Numerous studies exist examining the relationship between firm performance and IC value, but this area is inadequately focused and underresearched. This study, therefore, fills the research gap from an Indian perspective.

Nexus among green intellectual capital, green information systems, green management initiatives and sustainable performance: a mediated-moderated perspective

PurposeSustainability issues are crucial in today’s competitive environment. The integration of technology plays a vital role in the attainment of sustainability objectives. The study aims to investigate the relationship between green intellectual capital (IC), green information systems (IS), green management initiatives (GMI) and green technology adoption in light of natural resource-orchestration theory (ROT). Moreover, digital technology adoption mediates between green IC, green IS, GMI and sustainable performance. Finally, digital transformation strategy is used as a moderator between green technology adoption and sustainable performance.Design/methodology/approachA sample of 484 managers from automobile manufacturing companies was used in this study to evaluate the proposed relationships using the Structural Equation Modeling (SEM) methodology.FindingsFindings reveal that green IC, green IS and GMI significantly influence green technology adoption. Besides, green technology adoption plays a crucial role in improving sustainable performance. Moreover, green technology adoption significantly mediates between green IC, green IS, GMI and sustainable performance. Finally, a digital transformation strategy significantly strengthens the relationship between green technology adoption and sustainable performance.Practical implicationsThe organizations need green technology adoption to address environmental concerns, respond to consumer demand, achieve cost savings and comply with government regulations. Besides, in decision-making, organizations must focus on green IC, green IS, GMI, green technology adoption and digital transformation strategy to boost sustainable performance.Originality/valueThe originality of this study lies in its use of the natural ROT as a framework to examine the impact of multiple green resources on green technology adoption, leading to sustainable performance. Digital transformation strategy is used as a moderator between green technology adoption and sustainable performance. This study provides a comprehensive and integrated perspective on the subject with empirical evidence and relevant insights, contributing to the advancement of the field.

PENGARUH KINERJA MODAL INTELEKTUAL, PERTUMBUHAN PENJUALAN, DAN FAKTOR LAINNYA TERHADAP FINANCIAL DISTRESS

This research was conducted to obtain empirical evidence and also analyze factors that can influence the dependent variabel is financial distress. The independent variabels used in this research are current ratio, cash ratio, debt to total asset ratio, sales growth, institutional ownership and intellectual capital.The population used in this research are consumer cyclicals, consumer non-cyclicals and transportation and logistic listed on the Indonesia Stock Exchange during the 2019-2022 period. The sample in this research consists of 182 companies or 546 data obtained through purposive sampling method. To test the hypothesis, this research used logistic regression. The results of this research show that intellectual capital performance affect financial distress. Meanwhile, current ratio, cash ratio, debt to total asset ratio, sales growth,and institutional ownership do not affect financial distress.

Intellectual capital and organizational performance: the case of basic education institutions in Mexico

El presente trabajo tiene como propósito analizar cómo influye el capital intelectualen el desempeño organizacional de los establecimientos de educación básica privada del sur de Sonora, México. Esta investigación se realizó bajo una metodología cuantitativa, con un alcance correlacional. La construcción de un marco teórico sólido permitió aplicarun cuestionario a un total de 81 directivos de los centros educativos de nivel básico del sector privado. A fin de cuantificar la relación entre las variables, se utilizó la técnica de regresión lineal múltiple, en la que el 60,5% de la variabilidad en el desempeño organizacional se explica por el capital intelectual. Los resultados confirman que en el contexto educativo privado los activos intangibles tienen un impacto positivo y relevante en el desempeño organizacional.

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.

Corporate ESG performance and intellectual capital: International evidence

This study aims to empirically investigate the relationship between a firm's overall (individual) ESG performance and intellectual capital based on data from globally publicly listed firms across 30 countries from 2000 to 2019. We also explore how the Altman Z-score (the total number of patents and trademarks at the national level) moderates the association between firm’ ESG performance and intellectual capital. We use the Panel FGLS (Feasible Generalized Least Squares) approach to examine whether firms with better ESG performance experience a boost in intellectual capital performance. We present two key findings: (1) ESG performance, with its three main pillars, has a significantly strong positive impact on intellectual capital. This suggests that firms should engage in ESG activities as part of their strategy and, to remain ahead of their competitors, must innovate in ways that prevent rivals from copying their business approach. (2) The greater the number of patents and trademarks at the national level and the higher the Altman Z-score, the more significantly positive is the relationship between ESG performance and intellectual capital. The findings of this study contribute to the scant literature on ESG performance and intellectual capital. Firms with strong ESG performance and outstanding achievements in sustainable development have a competitive advantage; therefore, information about firms' strategies for incorporating, generating, transferring and applying intellectual capital can provide stakeholders with a long-term view of the company's future.

Intellectual Capital Performance and Disclosures in an Emerging Banking Market in Africa

Intellectual Capital Performance and Disclosures in an Emerging Banking Market in Africa

Intellectual capital performance and disclosures in an emerging banking market in Africa

Intellectual capital performance and disclosures in an emerging banking market in Africa

Enhancing firm performance through innovation: the roles of intellectual capital, government support, knowledge sharing and knowledge management success

PurposeThis study determines whether government support for innovation (GSFI), knowledge sharing, knowledge management success (KMS) and intellectual capital (IC) strengthens the relationship between firm innovation and performance in the manufacturing industry in Vietnam.Design/methodology/approachA theoretical model and related hypotheses on manufacturers in Vietnam were developed based on the resource-based view and knowledge-based view. Data were collected from 361 respondents through a structured questionnaire and analyzed by partial least squares-structural equation modeling.FindingsGSFI and IC significantly and positively influence firm innovation and performance. However, knowledge sharing does not affect firm innovation. Moreover, KMS fully mediates the positive relationship between knowledge sharing and firm innovation, and firm innovation partially mediates the positive relationships of IC and government support with firm performance.Practical implicationsThe findings show how managers can utilize IC, KMS and government assistance to maximize the benefits of innovative outcomes and improve business performance.Originality/valueThis groundbreaking study creates a research model incorporating IC, knowledge sharing, KMS, GSFI, firm innovation and firm performance by extending two theories. Although the effects of various intangible assets on firm performance have been discussed extensively in the literature, there has been limited focus on the significance of KMS, knowledge sharing, IC and GSFI for enhancing innovative outcomes and driving business success in emerging markets such as Vietnam.

How does intellectual capital drive firm performance via dynamic capabilities: evidence from India

PurposeThis study examines how intellectual capital (IC) drives firm performance via the lens of dynamic capabilities (DCs). Drawing on resource-based view (RBV) and dynamic capability view (DCV), the authors elaborate the mediating role of learning, integration and reconfiguration DC in the Indian banking context.Design/methodology/approachA sample of 358 top- and middle-level managers from the Indian banking sector was administered with structured questionnaires for data collection. Structural equation modeling (SEM) and Sobel test were used to analyze the data and test the hypothesized mediating effect.FindingsThe findings reveal that learning and integration DCs are key mediators in IC and banks' performance relationships in an emerging economy context. In contrast, the analysis revealed partial mediating role of reconfiguration DC. Furthermore, the learning DC has been identified as the primary mediating mechanism for transforming bank's IC into performance benefits.Practical implicationsThis study provides an important implication for the IC and DC link by empirically developing and validating a model in the Indian banking sector and making a several contributions to the related literature. This sector needs to incorporate and strengthen their IC and DCs to attain enhanced performance in today's dynamic environment. Bank managers can use these findings to bring their knowledge-related activities to channelize specific DCs to transform banks' IC when seeking to improve overall performance. Theoretically, this study extends previous research by outlining a set of organizational elements that tend to influence firm performances with the help of IC, learning, integration and reconfigurations DCs.Originality/valueAlthough several studies have investigated the links between IC, DC and firm performance, studies on emerging economies are scarce. This study is one of the most in-depth investigations of the relationship between IC, learning, integration and reconfiguration DCs and firm performance in an integrated framework, with a particular focus on the banking sector of an emerging economy.

DETERMINAN INTELLECTUAL CAPITAL DISCLOSURE: PADA PERUSAHAAN INDEKS ESG LEADERS

The purpose of this research was to test and analyze the effect of managerial ownership and institutional ownership on intellectual capital performance and intellectual capital disclosure for 2020-2021. This research used a quantitative approach. The population of this research are companies that included in the ESG Leaders index. The sample of this research as much 35 companies. The analysis technique used a content analysis and Warp Pls software. The result of this research prove that managerial ownership and institutional ownership contributed to intellectual capital performance, institutional ownership also contributed to intellectual capital disclosure, but managerial ownership and intellectual capital performance can’t contributed to intellectual capital disclosure.

Dynamics of intellectual capital and financial performance in ASEAN banks

PurposeThe purpose of this study is to examine the dynamic relationship between intellectual capital (IC) and its components on financial performance of banks within the selected eight countries of Association of Southeast Asian Nations (ASEAN).Design/methodology/approachThe study utilizes the balanced panel data of 37 publicly listed banks from eight leading ASEAN economies for the period of 2017–2021. In this sense, the authors applied the Ante Pulic's typology, i.e. value-added intellectual coefficient (VAIC™) to evaluate the efficiency of intangible and tangible assets. While, investigating the dynamic nature of relationship, the authors employed the generalized system method of moments because of its power to account for the problem of endogeneity and heteroscedasticity.FindingsThe results of the study demonstrate that banks in ASEAN countries shed a varied degree of a spotlight on VAIC™ and its components to create value. The findings revealed that structural capital efficiency is significantly associated with earning per share (EPS), return on assets (ROA) and return on equity (ROE), compared to human capital efficiency (HCE) and capital employed efficiency of ASEAN banks. These results endorse the importance of resource- and knowledge-based views of organizations to leverage the financial performance of banks. However, contrary to theoretical expectations, this study found no positive relationship between HCE with ROA and ROE. Whereas, the relationship of VAIC™ is positive and significant with EPS and ROE but it remains statistically very marginal.Research limitations/implicationsThere are some inherent limitations in this study that could be opportunities for future research. The current study uses the VAIC™ typology, but future researchers can use the modified value-added intellectual coefficient (MVAIC) or triangulation approach to enhance the validity and reliability of the study. Additionally, future research can investigate the similarities and differences among countries in terms of their cultural backgrounds and regulatory frameworks regarding the disclosure of intangibles. Furthermore, future research can increase the length and sample size of the study to enhance its generalizability.Practical implicationsThe robust empirical findings extend the academic debate on IC by unveiling the dynamic nature of relationship between IC and financial performance in context of ASEAN banking sector. The findings provide plausible recommendations for policy makers (managers, regulators and stakeholders) to understand how to increase the IC efficiently, especially human capital as a source to evaluate the firms’ ability in determining value-added and financial performance. Further, findings of this study also suggest that how can policy makers get the benefit by investing more on structural capital as a valuable strategic source to guarantee the optimal performance returns.Originality/valuePrior studies on IC have been country- and firm-specific, utilizing cross-sectional research designs. However, this research contributes to the limited literature by investigating the dynamic nature of the relationship between IC and financial performance of banks in the context of ASEAN countries using micro-panel data.

Influence of Gender Diversity, Age, Education, and Work Experience Top Management Team on Intellectual Capital Performance: Empirical Study on Sector Companies Banking in 2021-2022

The aim of this research is to analyze the influence of Gender Diversity, Age, Education and Work Experience on Intellectual Capital Performance. The sample used in this research consisted of 23 companies selected using purposive sampling. This research uses quantitative methods and the research object is banking companies listed on the Indonesian Stock Exchange for the 2021-2022 period. The research method used is Common Effect Model (CEM) panel data which is processed using the Eviews version 12 application. The data used is in the form of annual reports and financial reports for the period 2021-2022. This research uses multiple regression analysis. The variables in this research are Disclosure of Intellectual Capital (Y), Gender Diversity of the Female Top Management Team (X1), Age of the Top Management Team (X2), Education of the Top Management Team (X3) and Work Experience of the Top Management Team (X4). The results of the statistical analysis show that partially the Gender Diversity Top Management Team Female variable has a positive and insignificant effect on Intellectual Capital Performance. The age of the Top Management Team has a negative and significant effect on Intellectual Capital Performance. Then, Top Management Team education has a positive and insignificant effect on Intellectual Capital Performance. Lastly, Top Management Team experience has a negative and insignificant effect on Intellectual Capital Performance.

Examining intellectual capital and knowledge absorptive capacity for high innovative performance

AbstractIn the contemporaneous business environment, intangible assets and capabilities are building blocks of an organization's innovative performance. Despite the rising importance of absorptive capacity in knowledge management and innovation literature, there has been limited focus on its dimensions, such as knowledge acquisition, assimilation, and transformation, particularly in relation to intellectual capital (IC) and innovative performance. This research unravels the mediating role played by the dimensions of absorptive capacity in connecting IC to innovative performance. This research offers a novel combination of individual mediation effects of absorptive capacity components on the relationship between IC and innovative performance. Data for this cross‐sectional research were gathered from 295 organizations through a Likert scale questionnaire. This research employs partial least square‐structural equation modeling to analyze the individual mediating pathways of absorptive capacity. This study shows that knowledge acquisition adversely influences the relationship between IC and innovative performance, which challenges conventional wisdom. Conversely, all other mediation paths, including knowledge assimilation, transformation, and exploitation, exhibit a positive influence on innovative performance. Furthermore, this study also offers valuable managerial implications and suggests potential areas for future research.

Intellectual Capital Valuation of DSE-Listed Non-financial Companies in Bangladesh

Intellectual capital (IC) is an organization's vital resource that helps the firm survive by confirming competitive edges. However, the valuation of IC resources is a challenging task. IC valuation is essential to employ the knowledge resource efficiently. Hence, the study aims to evaluate the IC resources of non-financial companies in Bangladesh and compare the IC performance between manufacturing and service firms. The study also explores the year-wise trend study and industry-based IC performance study. Data have been collected from secondary sources from 69 DSE-listed non-financial companies in Bangladesh from 2017 to 2021, comprising 345 company-year observations. The Modified Value Added Intellectual Coefficient (MVAIC) methodology has been adopted to reflect IC value. Independent Sample t-tests and graph and chart analyses have been performed to fulfill the study objectives. Results have shown that human capital is the primary driver of IC resources, and it dominates Intellectual Capital Efficiency (ICE) and then the overall IC efficiency (MVAIC) score. Human and structural resources utilized by Bangladeshi companies are better than those of relational and tangible capital. Service companies have better handled human and structural resources, but manufacturing companies have better used relational and employed capital. Research has also observed a declining trend of IC resources of the sampled companies. Telecommunication, Fuel and power, and Textile industries have better used IC resources. However, the tannery industry still needs to do so. The research contributes to resources-based theory by confirming the value of invisible resources, which supports business executives, policy-makers, managers, and potential and existing investors to make the right decisions. Further research may be conducted using an extended sample size, comparing financial and non-financial sectors or comparing among industries or valuation techniques like EVA, KCE, and CIV.