A multidimensional view of intellectual capital: the impact on organizational performance

2015 ◽  
Vol 53 (3) ◽  
pp. 668-697 ◽  
Author(s):  
Kaveh Asiaei ◽  
Ruzita Jusoh
Keyword(s):  
Social Capital ◽  
Organizational Culture ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Listed Companies ◽  
Chief Financial Officers ◽  
Content Type ◽  
Knowledge Resources ◽  
The Impact

Purpose – The purpose of this paper is to empirically explore intellectual capital (IC) from a multidimensional perspective and its relationship with organizational performance (OP) within Iranian public listed companies. Design/methodology/approach – Survey data from Chief Financial Officers in 128 companies within Tehran Stock Exchange were collected and analyzed using partial least squares regressions. Findings – The findings suggest that organizational culture plays a significant role in developing human capital and structural capital while trust is a major determinant of all the IC components, namely human, structural, relational, and social capital. The results also confirm that the investment in human, structural, and relational capital could potentially bring about OP improvement in Iranian public listed companies. Practical implications – A synthesis of various sub-elements of IC supports executives in detecting, capturing, and assessing the different kinds of knowledge resources which must be taken into consideration individually for maximizing OP. Such multidimensional and comprehensive conceptualization of IC would assist organizations to remedy the inefficiency in the exploitation of IC and thereby providing a robust system in order to capture and measure IC more effectively. Originality/value – This study combines literature on IC across diverse academic fields. The multidimensional conceptualization of IC with four sub-dimensions (i.e. human, structural, relational, and social capital) as well as supplementing two antecedent constructs (trust and organizational culture) offer a more systematic manner to synthesize several knowledge-based drivers toward performance which have not been addressed simultaneously in a comprehensive framework.

The effect of intangible assets on sustainable growth and firm value – Evidence on intellectual capital investment in companies listed on Bucharest Stock Exchange

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catalin Ionita ◽  
Elena Dinu
Keyword(s):  
Growth Rate ◽  
Intellectual Capital ◽  
Firm Value ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Listed Companies ◽  
Sustainable Growth ◽  
Content Type ◽  
Sustainable Growth Rate ◽  
The Impact

PurposeThe present study investigates the connection between company investments in intellectual capital (IC) and how they translate into financial value. The aim is to test the impact of intangible assets on the firm value and its sustainable growth.Design/methodology/approachThe research employs computation models to determine the sustainable growth rate (SGR) and the firm value (FV), and by using the ordinary least squares (OLS) model through a linear regression assesses the relationship between the dependent variables and expenditures on intangibles like R&D, IT programs and patents. A sample of 42 companies has been selected out of the 78 listed at Bucharest Stock Exchange (BSE), based on the appropriateness of the information disclosed in the financial reports for the period 2016–2019.FindingsThe results show that intangibles classified as innovative competences (R&D and Patents) do not have a positive impact on SGR and FV in listed companies from Romania. Moreover, R&D has a negative and significant effect on FV, while IT Programs have a positive and significant impact on FV, but not on the SGR. Variables categorised as economic competencies (Brands, Shares held in associates and jointly controlled entities) and firm structure-specific variables (Leverage, Firm Performance) seem to have a significant effect on SGR and FV. Shares held in associates and jointly controlled entities is the variable that can have the biggest impact when it comes to FV for companies listed at BSE.Research limitations/implicationsDue to non-disclosure of specific information by some companies, or lack of investments in intangibles the sample had to be reduced and does not cover all listed companies.Practical implicationsCompanies listed on the Regulated Market from the Bucharest Stock Exchange should maintain their scale of liabilities at a reasonable level when financing intangible assets in order to ensure corporate long-term and sustainable development. Also, these companies should maintain awareness about the importance of intangible assets and invest more in specific sub-components, in order to sustain competitive advantage. Recognizing the roles of intangibles, managers need to develop strategies to invest in profitable intangibles by reasonably allocating their limited resources, in order to achieve sustainable growth and increase company success.Originality/valueStudies concerning the relation between investments in intangibles and sustainable growth rate and firm value of listed Romanian companies are very scarce. This paper reveals new research, never before undertaken, concerning expenditures on intangibles by Romanian companies and the valuation of such investments on Bucharest Stock Exchange.

Intellectual capital: a determinant of firms' operational efficiency

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kanishka Gupta ◽  
T.V. Raman
Keyword(s):  
Intellectual Capital ◽  
Stochastic Frontier Analysis ◽  
Stock Exchange ◽  
Stochastic Frontier ◽  
Value Added ◽  
Financial Sector ◽  
Operational Efficiency ◽  
Content Type ◽  
Frontier Analysis ◽  
The Impact

PurposeIntellectual capital (IC) has been recognized in improving the efficiency of businesses and gaining competitive edge in the developed world. The present study offers perspectives into the effect of IC on the efficiency of the Indian financial sector companies.Design/methodology/approachFor the purpose of evaluating efficiency, the research has used stochastic frontier analysis (SFA). All Indian financial sector companies listed in National Stock Exchange (NSE-500) for the timeframe of ten years (2008–2018) have been considered. The paper has employed modified Pulic's Value Added Intellectual Coefficient (VAICTM) as a proxy to measure IC. Correlation and panel data regression have been used in order to examine the relationship.FindingsThe results of the study indicate positive and significant relationship between IC and efficiency of the firm. The results also show that all the components of IC, that is, human capital, relational capital, process capital and capital employed have a significant impact on firms' efficiency. Additionally, it has been seen that sample companies do not invest in research and development leading to no innovation capital.Practical implicationsThe research will assist managers in managing and controlling the IC, investors in matters related to investment and financial experts in improving the company's IC and value creation.Originality/valueThe current research is one of the pioneering studies in the context of Indian financial sector that examines the impact of modified VAIC on operational efficiency calculated using SFA.

The impact of intellectual capital and knowledge flows on incremental and radical innovation

2018 ◽  
Vol 10 (2/3) ◽  
pp. 149-170 ◽  
Author(s):  
Duy Quoc Nguyen
Keyword(s):  
Social Capital ◽  
Human Capital ◽  
Intellectual Capital ◽  
Radical Innovation ◽  
Knowledge Flows ◽  
Innovation Performance ◽  
Incremental Innovation ◽  
Content Type ◽  
Radical Innovations ◽  
The Impact

PurposeThe purpose of this paper is to develop a theoretical and empirical exploration of link between organization intellectual capital and knowledge flows with its incremental and radical innovation performance.Design/methodology/approachThis paper adopts relevant literature of social capital and organizational learning to examine the impact of intellectual capital and knowledge flows on incremental and radical innovation based on surveying 95 firms. To test the research hypotheses, regression analysis is used.FindingsResults of the study show that human capital and top-down knowledge flows significantly and positively influence both incremental and radical innovations. Social capital and bottom-up knowledge flows do not have any significant impact on incremental or/and radical innovation. Organizational capital has a positive impact on incremental innovation as expected.Practical implicationsThe results offer several practical implications for business managers to harvest its knowledge bases resident in the firm’s different forms appropriately to make innovation successful. Particularly, knowledge resident in human capital and organizational capital is useful for making incremental innovation. Especially, new knowledge, new skills and new perspectives resident in human capital are crucial important for making radical innovation. Both incremental and radical innovations are positively influenced by dynamic managerial capabilities.Originality/valueThis study contributes to literature by providing new evidence linking organization intellectual capital and knowledge flows with its innovation performance. Especially, the missing link between top-down knowledge flows and radical innovation is empirically examined. Value of this study is that social capital and bottom-up knowledge flows are not universally beneficial for enhancing innovation and their impacts on innovation performance are context dependent and more sophisticated than it is recognized in the literature.

Intellectual capital and performance measurement systems in Iran

2018 ◽  
Vol 19 (2) ◽  
pp. 294-320 ◽  
Author(s):  
Kaveh Asiaei ◽  
Ruzita Jusoh ◽  
Nick Bontis
Keyword(s):  
Performance Measurement ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Structural Model ◽  
Chief Financial Officers ◽  
Least Squares Regression ◽  
Content Type ◽  
Intellectual Assets ◽  
Performance Measurement Systems ◽  
And Performance

PurposeThe purpose of this paper is to empirically explore how the effect of intellectual capital (IC) on organizational performance is indirect and mediated through performance measurement (PM) systems.Design/methodology/approachData were collected from a survey of 128 chief financial officers of Iranian publicly listed companies. Hypotheses were tested using partial least squares regression, a structural modeling technique which is appropriate for highly complex predictive models.FindingsResults from the structural model indicate that, in general, companies with a higher level of IC place a premium on the balanced use of PM systems in a diagnostic and interactive style. Furthermore, the results provide some evidence that IC is indirectly associated with organizational performance through the intervening variable of the balanced use of interactive and diagnostic PM systems.Practical implicationsThis study sheds light on the issue of how senior management should use PM systems to take full advantage of intellectual assets which could lead to improved organizational performance.Originality/valueThis is the first study of its kind to synthesize a model which examines IC, PM systems, and organizational performance. Although the effect of different types of intangible assets on performance has been substantially examined in the literature, less effort has been devoted to understanding the role of PM systems in leveraging an organization’s IC.

Intellectual capital, organizational culture and ambidexterity in Colombian firms

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Esteban López-Zapata ◽  
Armando De Jesús Ramírez-Gómez
Keyword(s):  
Organizational Culture ◽  
Latin American ◽  
Intellectual Capital ◽  
Structural Equation Models ◽  
Least Squares Method ◽  
Mediating Effect ◽  
Organizational Ambidexterity ◽  
Content Type ◽  
Market Culture ◽  
The Impact

PurposeThis study analyzes the impact of intellectual capital on organizational ambidexterity by evaluating the mediating effect of the different types of organizational cultures (adhocracy, clan, market and hierarchy) on the said relationship.Design/methodology/approachFrom a sample of 124 directors of Colombian firms, the information is analyzed using Structural Equation Models through the Partial Least Squares method (SEM-PLS).FindingsThe results show that intellectual capital has a positive relationship with organizational ambidexterity and that market culture presents a positive mediating effect in the said relationship, while the mediating effects of adhocracy culture, clan culture and hierarchy culture are not significant.Practical implicationsDirectors can favor the development of organizational ambidexterity by investing in the intellectual capital of their firms and by promoting the development of market culture attributes.Originality/valueThis work contributes empirical evidence on the mediating role of organizational culture in the relationship between intellectual capital and ambidexterity, highlighting the importance of market culture over other types of culture for the simultaneous development of exploration and exploitation capabilities, in the context of an emerging Latin American economy such as Colombia.

Measuring the intellectual capital of Italian listed companies

2017 ◽  
Vol 18 (4) ◽  
pp. 710-732 ◽  
Author(s):  
William Forte ◽  
Jon Tucker ◽  
Gaetano Matonti ◽  
Giuseppe Nicolò
Keyword(s):  
Intellectual Capital ◽  
Firm Growth ◽  
Stock Exchange ◽  
Market Value ◽  
Investment Strategy ◽  
Sources Of Information ◽  
Content Type ◽  
Italian Context ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to investigate the relationship between intellectual capital (IC), measured in terms of the market to book (MTB) ratio, and potential key determinants of IC value such as intangible assets (IA) and a range of other factors. Design/methodology/approach The study is conducted for a sample of 140 Italian corporations over the period 2009-2013. Applying a holistic market-based approach, the relationship between IC value and selected determinants from the extant literature is tested. Five hypotheses are tested using a pooled OLS regression model, while controlling for time. ROE is employed as a useful firm profitability indicator from the perspective of an equity investor. Moreover, four robustness tests are undertaken. Findings The results show that IA, profitability, leverage, industry type, auditor type, and family ownership positively affect IC value, whereas SIZE and AGE negatively affect IC value. Moreover, the findings of the robustness tests suggest that all firms, and not just knowledge-intensive business service industry firms, manage knowledge. Research limitations/implications The validity of the findings is limited to the Italian context, as the study focuses on a sample of companies listed on the Milan Stock Exchange, all of which prepare their individual financial statements according to IFRS. Further limitations are related to the use of market value in the short term, as it is influenced by market volatility. The study may allow academic researchers to investigate the impact of other non-accounting sources of information on market value within a multidisciplinary perspective. Practical implications This paper also has implications for managers and practitioners. The findings suggest that managers should not take for granted that firm growth (an increase in SIZE) alone will lead to an increase in IC value, in the absence of a consistent IC-oriented investment strategy. Managers should also avoid smoothing their IC investment as the company grows, in order to maintain a stable MTB ratio. Further, standard setters should seek to explore better means of disclosing non-accounting information relating to IC value. Originality/value This paper contributes to the IC literature as it is the first study which applies the market capitalization approach to analyze IC value determinants in the Italian context, within the framework of IFRS. The findings reveal some interesting relationships between the MTB ratio and recognized intangible investments, which are found to be insignificant in previous studies, confirming that, through the holistic effect, the MTB ratio may be a good proxy for IC.

Bridging the gap between supply chain risk management and strategic technology partnering capabilities: insights from social capital theory

2018 ◽  
Vol 23 (4) ◽  
pp. 278-292 ◽  
Author(s):  
Irène Kilubi ◽  
Helen Rogers
Keyword(s):  
Social Capital ◽  
Risk Management ◽  
Supply Chain ◽  
Organizational Performance ◽  
Social Capital Theory ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Capital Theory ◽  
Content Type ◽  
The Impact

Purpose As companies seek to continually innovate to remain globally competitive, they also need to be mindful of the impact of the potential associated supply chain risks. Hence, the purpose of this study is to explore the causal nexus of relationships linking supply chain risk management (SCRM) and strategic technology partnering (STP) capabilities (i.e. organizational capabilities, technological and innovative capabilities, learning and exploitation capabilities, complementary capabilities and network and partnership capabilities) as identified by Kilubi (2016). Design/methodology/approach The authors investigate STP capabilities that may positively influence SCRM and in turn foster organizational performance. By using conceptual theory building, the authors create a conceptual framework and use it to guide future investigation through research propositions. Social capital theory serves as the theoretical background. Findings Five STP capabilities have been identified as positive mediators for the relationship between SCRM and organizational performance, in particular flexibility and responsiveness. Originality/value This paper focuses on bridging the gap and identifying commonalities between two principal research disciplines, STP and SCRM, examining how these can be used to assist in the controlling and management of future risks. This study contributes to the ongoing development of SCRM and STP by integrating insights from social capital theory, supply chain management and strategic management.

Do intellectual capitals matter to firm value enhancement? Evidences from Taiwan

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yensen Ni ◽  
Yi-Rung Cheng ◽  
Paoyu Huang
Keyword(s):  
Intellectual Capital ◽  
Firm Value ◽  
Stock Exchange ◽  
Emerging Market ◽  
Customer Relationship ◽  
Strategic Decisions ◽  
Content Type ◽  
Data Resource ◽  
Customer Capital ◽  
The Impact

PurposeThe purpose of this study is to find evidence of the impact of intellectual capital on firm value, and, in turn, enhance the existing literature which lacks consensus on it. By employing some distinctive proxies for human capital, innovation capital, customer capital and process capital, this study might provide valuable information for firms to make strategic decisions.Design/methodology/approachThis study uses Tobin's Q to represent firm value and various variables to be the proxies for intellectual capitals. By utilizing firm-year observations, this study applies panel data models first, and then Petersen regression models for further investigation to enhance the robustness of the empirical results.FindingsFirm value is affected positively by the average net profit per employee as well as goodwill and intangible assets. This is because firms having employees with abundant knowledge will possess advantage for innovation, and the excellent reputation, a part of goodwill for oriental firms, would encourage people to consume and invest more.Research limitations/implicationsThe constraint of data resource is the main limitation. With the limited scales and as an emerging market of Taiwan Stock Exchange, it is not confirmed whether the results are appropriate for the developed markets. Nevertheless, firms should make efforts on developing intellectual capital and corporate governance for operating businesses with competitiveness and safety.Originality/valueSince capable employees enhance the innovation, innovation improves customer's satisfaction and good customer relationship increases the sales; this study illustrates that for expanding businesses, firms should make more efforts on developing intellectual capital.

Examining the impact of organizational culture on social capital in a research based organizations

2016 ◽  
Vol 46 (3) ◽  
pp. 411-426 ◽  
Author(s):  
Majid Ramezan
Keyword(s):  
Social Capital ◽  
Organizational Culture ◽  
Regression Analysis ◽  
Positive Impact ◽  
High Reliability ◽  
Pearson Correlation ◽  
Face Validity ◽  
Content Type ◽  
Industrial Organizations ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of organizational culture (OC) on social capital (SC) between experts of research-based industrial organizations who were aware of the subject of research. Design/methodology/approach The tools in this study were the native and modified questionnaire of Denison OC model with 33 items and Abili’s developed questionnaire based on Nahapiet and Ghoshal model for SC with 24 items. Validity of questionnaire well approved based on face validity method by experts, specialists and professors of management. Using the results of pre-test, Cronbach’s alpha was showed the very high reliability. Because of the low number of experts, we did not sampling and decided to distribute questionnaires among all of them. In all, 120 completely filled questionnaires were returned out of the 134 distributed. For examining the main hypothesis and sub-hypothesis of this study simple linear regression and multiple regression analysis were used. Findings The results of regression analysis showed that regression line ascribes changes in dependent variable (SC) to independent variable (OC). It means that in research-based industrial organizations, OC has a significant positive impact on SC and cultural traits with internal focus have more impact on SC than those with external focus. Then, with the use of parametric tests, the relationship between OC and SC and between components of OC and SC was investigated. Finally, Pearson correlation tests results confirmed the significant relationships. Overall, the results of this study show the significant, positive, strong relationship between OC and SC. Originality/value As there are not many studies about the impact of OC on SC, this paper’s findings will be useful to assess and improve the cultural situation for increasing the SC in organization.

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