Intellectual capital (IC) is considered to be a wealth generator and driver of financial performance thus creating competitive advantage and sustainability in business. This paper empirically investigates the impact of IC on financial performance and sustainable growth in the Korean manufacturing industry. Multiple regression models are applied with data collected from 390 manufacturing companies listed on the Korean Stock Exchange during 2012–2016. The results of the analysis show that IC has a positive impact on financial performance and companies’ sustainable growth. In addition, companies’ performance and sustainable growth are positively related to physical capital, human capital (HC), and relational capital (RC). RC is found to be the most influencing factor. Finally, innovative capital captures additional information on structural capital (SC) which negatively affects the performance of Korean manufacturing companies. The results extend the understanding of IC in creating corporate value and building sustainable advantages in emerging economies.

Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry

The purpose of this paper is to examine the effect of intellectual capital (IC) on financial performance (FP) for Indian companies listed on the Centre for Monitoring Indian Economy Overall Share Price Index (COSPI).,Hypotheses were developed according to theories and literature review. Secondary data were collected from Indian companies listed on the COSPI between 2001 and 2016, and the value-added intellectual coefficient (VAIC) of Pulic (2000) was used to measure IC and its components. A dynamic system generalized method of moments (SGMM) estimator was employed to identify the variables that significantly contribute to firm performance.,Indian listed firms appear to be performing well and efficiently utilizing their IC. Overall, human capital had a major impact on firm productivity during the study period. Furthermore, the empirical analysis showed that structural capital efficiency and capital employed efficiency were equally important contributors to firm’s sales growth and market value. The growing importance of the contribution of IC to value creation was consistently reflected in the FP of these Indian companies.,This study has robust theoretical grounds and employs a validated methodology. The present study extends knowledge of IC among academicians and managers and highlights its contribution to value creation. The findings may help stakeholders and policymakers in developing countries properly reallocate intellectual resources.,This study is the first study to evaluate IC and its relationship with traditional measures of firm performance among Indian listed firms using dynamic SGMM and VAIC models.

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

The purpose of this paper is to explore and compare the extent of intellectual capital (IC) and its four components in high-tech and non-high-tech small and medium-sized enterprises (SMEs) operating in China’s manufacturing sector, and to examine the relationship between IC and the performance of high-tech and non-high-tech SMEs.,The study uses the data of 116 high-tech SMEs and 380 non-high-tech SMEs listed on the Shenzhen stock exchanges during 2012–2016. The modified value added intellectual coefficient (MVAIC) model is used incorporating four components, namely, capital employed, human capital, structural capital and relational capital. Finally, multiple regression analysis is utilized to test the proposed research hypotheses.,The findings of this paper reveal that there is significant difference in MVAIC between high-tech and non-high-tech SMEs. The results further indicate a positive relationship between IC and financial performance of high-tech and non-high-tech SMEs. Specifically, IC is positively associated with firms’ earnings, profitability and operating efficiency. Additionally, capital employed efficiency, human capital efficiency and structural capital efficiency are found to be the most influential value drivers for the performance of two types of SMEs while relational capital efficiency possesses less importance.,This paper will provide a valuable framework for executives, managers and policy makers in managing IC within the Chinese context.,To the best knowledge of the authors, this is the first empirical study that has been conducted on high-tech and non-high-tech SMEs in the manufacturing sector in China.

The impact of intellectual capital on SMEs’ performance in China: Empirical evidence from non-high-tech vs. high-tech SMEs

Purpose
This study aims to investigate the intellectual capital–financial performance relationship using two models, namely the conventional Value-Added Intellectual Coefficient (VAIC) model and the adjusted Value-Added Intellectual Coefficient (A-VAIC) model

Design/methodology/approach
This study is designed as a quantitative research focusing on the relationship between intellectual capital and financial performance of the banking industry in Indonesia As many as 114 data are derived from the publicly listed banks on the Indonesia Stock Exchange for the period of 2012–2017 The multiple regression analysis is employed to test the hypotheses studied

Findings
In general, the result confirms that intellectual capital affects financial performance Although not all hypotheses of the study are supported by either the VAIC model or the A-VAIC model, the results provide a deeper and new insight on how each component of intellectual capital efficiency (human capital, structural capital, capital employed, innovation capital) relates to financial performance (return on asset, return on equity, asset turnover, price to book ratio) The results also justify that further improvements in measuring intellectual capital are still needed in the future

Research limitations/implications
This study limits its generalization since the sample is only in the Indonesian banking industry Notwithstanding the limitation, the results imply that the Indonesian banking managers need to be aware of intellectual capital management because of its strategic role in enhancing financial performance

Practical implications
This study contributes to the intellectual capital literature by providing empirical evidence on the use of both models, namely the conventional VAIC and the A-VAIC in the Indonesian banking industry research setting which is never been studied before

Social implications
This study has the social implication to the enhancement of the quality life of the society The higher the quality of intellectual capital in the banking firms, the better the banks serve the needs of the community

Originality/value
This study contributes to the IC literature by providing empirical research on the use of the VAIC model and the A-VAIC model in the Indonesian banking industry

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Measures that matter: an empirical investigation of intellectual capital and financial performance of banking firms in Indonesia

Intellectual capital (IC) is generally understood as an important driver of firm competitiveness improvement and value generation in the knowledge economy. The manufacturing industry, the backbone of the South Korean economy, is coming under increasing international pressure. In order to increase the competitiveness of Korean industry, the main objective of this paper is to examine the impact of IC and its components on the performance of Korean manufacturing firms over the period 2013–2018. The modified and extended Value Added Intellectual Coefficient (VAIC) model was adopted to more accurately measure IC, and firm performance was systematically and comprehensively measured in three distinct parameters: profitability, productivity and market value. Our regression results show that physical capital was the most influential factor to firm performance; human capital was viewed as a performance enhancing measure; structural capital had no significant impact on firm performance; and innovation capital and relational capital hurt a firm’s profitability. It is also evident that the modified and extended VAIC model performs better than the original VAIC model proposed by Pulic (1998). This study extends the understanding of IC in achieving a competitive edge in the manufacturing sector, with IC representing a valuable platform for the sustainable development of the manufacturing sector in emerging Asian markets.

The Impact of Intellectual Capital on Firm Performance: A Modified and Extended VAIC Model

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Impact of intellectual capital on business performance: evidence from indian pharmaceutical sector

PurposeThe purpose of this paper is to investigate the significance of board gender diversity (BGD) on the firm's intellectual capital (IC) performance of 272 Indian firms listed on the National Stock Exchange during 2007–2019. Considering the recent regulatory amendment by the Indian regulatory system (Security Exchange Board of India, 2018) which mandates at least one female independent directors on boards of all listed companies.Design/methodology/approachBased on theories and literature reviews, hypotheses were developed. This paper uses the proportion of female director on board and proportion of female independent directors to measure BGD and modified value-added intellectual coefficient (MVAIC) methodology to measure firms' IC performance. Two-step system-generalised method of moment panel data regression analysis has been employed to identify the variables that significantly affect IC performance.FindingsThis paper finds female representation on boards has a significant impact on MVAIC; capital employed efficiency shows the strongest association with female directors on board, followed by structural capital efficiency and human capital efficiency, while relational capital efficiency shows no significant effect. The results further demonstrate that female independent director has a significant but negative impact on IC.Research limitations/implicationsAs the study is limited to the listed firms of an emerging economy with a mandatory female quota for boards. Thus to increase the generalizability of findings, future research can be extended to include all listed and non-listed firms from another emerging economy with a mandatory female quota.Practical implicationsFrom the practical perspective, this study bridges the gap between theory and practice in terms of providing a deeper understanding to the policymakers and Indian regulatory bodies like the Ministry of Corporate Affairs and Securities Exchange Board on the importance of including female members on board as a vital contributing factor for leveraging firm's intangible performance.Originality/valueUsing resource dependency theory and agency, this study extends the literature on IC efficiency and female representation on boards by presenting the research outcome for Indian listed firms. This paper, addressing the recent changes introduced by Indian regulators and using the female independent directors on board, is amongst the first attempts to assess the relevance of BGD and IC performance. This issue has still not been discussed and analysed by researchers in India.

Neha Smriti

Papers

The impact of intellectual capital on firm performance: a study of Indian firms listed in COSPI

Impact of intellectual capital on business performance: evidence from indian pharmaceutical sector

Do female directors drive intellectual capital performance? Evidence from Indian listed firms