Purpose – The purpose of this paper is to examine whether intellectual capital (IC) creates value in the Serbian information communication technology (ICT) sector. More specifically, it examines the degree to which IC and its key components affect the financial performance of selected ICT companies compared to effects on physical and financial capital. Design/methodology/approach – The analysis included 13,989 Serbian ICT companies during 2009-2013. Value-added intellectual coefficient (VAIC) was used to measure the level of IC contribution to value creation. Measures of financial performance used in the study were return on equity, return on assets, return on invested capital, profitability, and asset turnover. Findings – Results indicate that, when using firm size and leverage as control variables, only capital-employed efficiency has significant effect on financial performance. Finally, the research confirms that there were no significant differences in financial performance among different ICT subsectors. Research limitations/implications – Main research limitation is related to the disadvantages of VAIC as the measure of IC’s contribution to value creation. Practical implications – Owners and managers of Serbian ICT companies must recognize the importance of managing both the physical capital and the intangible resources embedded in their employees and processes. Originality/value – This is the first paper to examine comprehensively the impact of IC on financial performance in the ICT sector in a transitional economy. This study differs from prior studies in that the authors analyzed every company that operated in Serbian ICT sector.

Purpose The purpose of this paper is twofold: first, to fill a gap in the intellectual capital (IC) literature by providing insights into the relationship between IC and corporate performance among Arab companies and second, to challenge the validity of the Value Added Intellectual Coefficient (VAIC) as a measure of IC’s contribution to performance. Design/methodology/approach The research sample included 100 publicly traded Arab companies selected by Forbes Middle East and ranked as top performers in terms of sales, profits, assets, and market value. The methodology included assessing the impact of IC components on company earnings, profitability, efficiency, and market performance for the period between 2011 and 2015. Research hypotheses were tested through the presentation of descriptive statistics, normality tests, correlation matrix, and multiple regression models. Findings The research yielded ambiguous results. Earnings and profitability were significantly affected by structural and physical capital; efficiency was determined primarily by physical capital; and market performance was mainly influenced by human capital. Research limitations/implications The main limitation of the research comes from disadvantages of VAIC as the measure of IC’s contributions to performance. Originality/value The paper fills a void in the study of IC and corporate performance among Arab companies.

Purpose – The purpose of this study is to determine whether intellectual capital (IC) creates value in the Serbian hotel industry. Specifically, this paper examines to what degree IC and its key components affect the financial performance of hotels compared to physical and financial capital. Design/methodology/approach – The sample included all of the hotels that operated as independent entities in Serbia during 2009–2012. value-added intellectual coefficient was used to measure the level of IC contribution to value creation, which was linked to various measures of financial performance, including operating profit, return on equity, return on assets, profitability and employee productivity. Findings – Results indicate that after controlling for firm size and leverage, employee productivity and, to some extent, profitability were affected by human and structural capital. The research confirms that the financial performance of hotels in Serbia remains predominantly influenced by efficient use of physical capital. Research limitations/implications – The study’s generalizability is limited to the hotel sector within Serbia. Practical implications – Senior managers in the hotel industry must recognize the importance of managing both the physical aspects of their hotels and the intangible resources embedded in their employees and processes. Originality/value – The findings will aid recognition of the importance of investing in IC in hotel industry as a crucial element of achieving competitive advantage in the information age. Moreover, the findings suggest that long-term growth should not rely solely on physical and financial assets.

Purpose This research paper explores the impact of intellectual capital (IC) and its various components on financial performance of 100 Serbian companies within the real sector (which includes all companies in the Serbian economy not including banking and insurance). Design/methodology/approach The performance measures used were net profit, operating revenues, operating profit, return on equity (ROE), and return on assets (ROA), whereas IC efficiency was measured using value added intellectual coefficient (VAIC). A multiple‐regression model was used to assess the relationship among individual components of VAIC and financial performance. Findings Net profit, operating revenue, and operating profit are not the consequence of the efficient use of IC in Serbian companies. On the other hand, human and structural capital affect ROE and ROA, whereas physical capital influences ROE. Research limitations/implications VAIC is an accounting measure of performance and therefore does not provide an adequate framework for analyzing synergy between human, structural, and physical capital. In addition, the model fails to offer adequate analysis for those companies that have negative values for equity and operating profit. Practical implications The presented results are especially useful for further research regarding the role and significance of IC for Serbian companies. By focusing on adequate IC management and use, the Serbian economy's competitiveness level would increase. Originality/value This paper is original as no previous empirical work on IC and its effects on financial performance have been carried out among Serbian companies in the real sector. Copyright © 2013 John Wiley & Sons, Ltd.

The purpose of this research study is to investigate the relationship between knowledge management (KM) processes and the level of business performance of organizations in Kuwait. The research utilized a survey that was administered to 500 employees of 139 private and government companies in Kuwait. Tests of validity and reliability confirmed the use of the survey instrument whereas factor analysis revealed 4 main factors whose impact on performance was assessed. The research results revealed that all 4 KM processes examined (i.e., knowledge generation and development, codification and storage, transfer and sharing, and use and evaluation) have a positive and significant impact on perceived business performance. Additionally, the research revealed that KM processes have the highest impact on innovation performance. The limitation of this study is mainly related to the limited geographical scope of the research, because the survey covered only companies from Kuwait. The originality of the research comes from geographical area covered. Virtually, no empirical research has been undertaken in area of knowledge management in Kuwait, as an oil‐dependent country.