Intellectual Capital Performance Research Articles

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.

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.

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

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

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

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.

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.

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.

What Drives Voluntary Intellectual Capital Information Disclosure? Evidence from Deposit Money Banks in Nigeria

The aim of this study is to explore the determinants of intellectual capital(IC) information disclosure from the perspective of signaling and proprietary cost theories. This study adopted ex-post facto research design. In particular, a data set was drawn from the five-year (from 2012 to 2016) annual reports of 12 Deposit Money Banks (DMBs) operating in Nigeria. The data set collected was analysed by means of panel corrected standard error (PCSE). The study results indicate that whereas corporate age and size have significant positive relationship with IC information disclosure, intellectual capital performance has significant negative association with IC information disclosure. Additionally, corporate profitability is found to have insignificant negative relationship with IC information disclosure. The study results offer useful insights that would assist policymakers and regulators in formulating policies and developing reporting guidelines that, at the moment, are not included in the existing accounting reporting guidelines. Moreover, the paper confirms prior study results in this area and includes such unusually explored IC disclosure driver as IC performance and, thus, extends and deepens existing literature on the determinants of IC information disclosure.

Using gender diversity to improve intellectual capital performance: an Indian investigation

Using gender diversity to improve intellectual capital performance: an Indian investigation

Intellectual Capital in Asia Stock Market: A Systematic Literature Review and Research Agenda

In some severe global economic conditions like the Corona Virus Disease (COVID-19) pandemic in 2019, most of the economic sectors and stock market have dropped significantly. However, not all of the investors had overreacted and carried out panic selling during the severe condition, because they believed in their analysis either using financial and non-financial literacy such as intellectual capital (IC). As non-financial information, the existence of IC is undeniable to support better quality from the company itself and its stock return in the market. The purpose of this research is to provide valid and reliable information for future studies and to become a guidance to help researcher in analysing and mapping data comprehensively from the research problems. In this paper, it will discuss the three main research questions. Firstly, how is IC implemented in Asia public listed companies towards the reaction on stock market? Secondly, what are the syntheses and limitations of IC work in three different perspectives, consist of: the empirical findings, theories, and methodological specifications? Third, what are the recommendations for future research agenda on intellectual capital in Asia stock market? In this research, the method used was the systematic literature review (SLR), and carried out analysis from three different perspectives: empirical, theoretical, and methodological frameworks. The research result shows that the author can provide 14 past studies, four main theories, and two methodological recommendations to be added for future studies to examine the sustainable power of IC performance in dealing with the stock price movement. Also, all of the findings may be useful to help other authors in addressing the research gaps found and exposing more suitable theories and reliable methodological framework.

Intellectual Capital Efficiency and Performance of Banks in India

The aim of this paper is to examine the impact of intellectual capital efficiency on the performance of commercial banks in India for twotime periods, viz. 2018-19 and 2020-21 representing the pre and post-merger periods. The IC efficiency (ICE) of the banks is measuredusing the standard Human Capital Efficiency (HCE), Structural Capital Efficiency (SCE). The performance is measured in terms ofReturn on Assets (ROA), Return on Equity (ROE), Net Interest Margin (NIM), and Return on Investments (ROI). The results show thatsub-components of IC have impacted the performance of banks variedly, but not consistently. The ICE of private sector banks hasincreased over the period of study. The impact of merger on the ICE performance of the individual public sector banks has been mixed,though on the average, there is no immediate statistically significant impact of the mergers on the ICE performance of all the public sectorbanks in India.Key words: Intellectual Capital Performance, Human Capital, Banking, Productivity, Profitability, Mergers

Does intellectual capital drive bank's performance in Bangladesh? Evidence from static and dynamic approach

This paper investigates the relationship between measures of intellectual capital efficiency and the performance of the listed banks in Bangladesh. We have collected data from the listed bank's published annual reports for seven years (2015–2021). We have primarily used standard panel data analysis techniques to assess the static relationships. In addition, to the static models, we have also checked the dynamic models for robustness in the context of Bangladesh. Following the RBV (Resource Based theory), we have found that the MVAIC (Modified Value-Added Intellectual Coefficient) significantly and positively determines firm performance in both static and dynamic methods. However, various components of MVAIC show differing relationships, which indicates that the two-step system GMM (Generalized Method of Moments) is superior to static models. The moderating role of MEETING (Company Meetings) is significant with respect to MVAIC. In addition, the moderating role of corporate governance variables at the component level remained the same in both methods. Our further analysis of the association with respect to the before and during pandemic periods suggests that the relationship remains the same irrespective of the period under study. Future research can use this paper to understand the significance of dynamic modeling while studying IC (Intellectual Capital) in an emerging economy context. This is among a few studies that have applied both static and dynamic models to assess the relationship between IC and firm performance in the context of emerging economies. Policymakers and bank managers in Bangladesh could use the findings of this study to realize that IC is much more valuable than other available tangible assets in creating a sustainable competitive advantage.

Does intellectual capital in Islamic banks outperform conventional banks? Evidence from GCC countries

PurposeThis study explores, first, the performance effect (accounting- and market-based performance) of intellectual capital (IC), measured using the value-added intellectual coefficient (VAIC) and its modified version (MVAIC), on Islamic and conventional listed banks in Gulf Cooperation Council (GCC) countries and, second, whether Islamic banks outperform conventional banks in utilising IC.Design/methodology/approachUsing resource-based view theory and literature reviews, regression analyses are conducted on data for the period 2012–2019 on 26 Islamic and 42 conventional banks. For hypothesis testing, the generalised method of moments panel data regression analysis is applied after addressing endogeneity issues.FindingsResults, after controlling for corporate governance, indicate that the performance effects of IC (VAIC and MVAIC) on both bank types largely converge and Islamic banks do not outperform conventional banks in IC use. IC has a stronger effect on accounting performance measures for conventional banks than for Islamic banks, but IC has some effect on market performance measures for Islamic banks alone. Corporate governance variables do not play a significant role in the presence of VAIC and MVAIC although there are differences in corporate governance between the two bank types.Originality/valueThis study bridges the gap in GCC banking sector literature on the association between IC efficiency and performance measures of Islamic and conventional banks, from a comparative perspective. It enhances understanding, about the IC–financial performance nexus, of policymakers, regulators, bank managers and other stakeholders interested in the influence of different business models, financing/investment methods and governance structure on the performance of both bank types.