Effects of intellectual capital on qualitative and quantitative performance: Evidence from Turkey

Abstract

Intellectual capital is among the new, advanced management notions developed to overcome the inadequacy of previous administrations, to adapt to new situations and forge ahead of the competition. Intellectual capital means the information, experience and skills that offer advantage in competition and reveal the values existing within the structure of an enterprise. These values also exist in the relationship between the enterprise and the environment and with the employees. Although some research studies on intellectual capital (IC) have been conducted, to date no research has been carried out on the effects of IC on qualitative and quantitative organizational performance. For this reason, IC and its effects on firm performance (both qualitative and quantitative) were evaluated in this study. Following the evaluation of the intellectual capital and its sub-elements, the differentiation of the sub-elements is made. Then the reliability and validity of these sub-factors are calculated. The intellectual capital model has been tested by the structural equality model (SEM). According to research results, IC explains 92 per cent of a firm's performance. The effect of IC on qualitative performance is 0,84, while on quantitative performance it is 0,72. RC impresses qualitative performance with coefficient 0,94, quantitative performance with coefficient 0,60; HC impresses qualitative performance with coefficient 0,92, quantitative performance with coefficient 0,54 less; SC impresses qualitative performance with coefficient 0,90, quantitative performance with coefficient 0,53. According to the results of the research, IC affects both the qualitative and the quantitative performance of firms by supplying extensive knowledge to the managers.

Intellectual Capital and Firm Value: An Investigation of Turkish Manufacturing Companies

“…Our results are in line with previous studies (i.e. Bayraktaroglu et al, 2019;Gülcemal and Çıtak, 2017;Özer et al, 2015;Yılmaz and Acar, 2018). These studies, as well as ours, report a positive relationship between IC and firm performance in the context of the Turkish firms by clarifying that IC is one of the leading factors that explain the value together with physical and financial capital for Turkish manufacturing firms in the modern competitive environment.…”

“…They report that IC efficiency positively influences the profitability of financial institutions. Besides, there are studies in the literature that report a positive relationship between IC and firm performance in the context of the Turkish firms (such as Bayraktaroglu et al, 2019;Gülcemal and Çıtak, 2017;Özer et al, 2015;Yılmaz and Acar, 2018). In general, these studies report that IC is one of the leading factors that explain the value together with physical and financial capital in the modern competitive environment.…”

The influence of ethical leadership on innovative performance: modeling the mediating role of intellectual capital

“…Recent changes within the domain of organizational working as well as changes toward the competitiveness of an employee, organizational performance oriented working temperaments and market structures have led to pursue the propositions, which urge more emerging professional practices excelling contemporary organizational performances. Consequently, ethical leadership (Freire and Bettencourt, 2020; Garba et al , 2018) and intellectual capital (IC) (Özer et al , 2015) have become an important trait of business, and the knowledge economy disseminates the creation of innovative propositions and along with valid ideas about tangible products, services, procedures or practices, has become progressively imperative in today's businesses (Migdadi, 2021; Shafique et al , 2019). Recent research has claimed that innovation is an effective competitive tool for firms and have stressed that promoting employees' innovative performance is a major goal and objective for leaders in the 21st century (Ghosh et al , 2017).…”

The Evaluation of Lecturer's Performance and Sekolah Tinggi Perikanan's Performance Through Intellectual Capital

“…The existence of intellectual capital causes the university to focus on managing their resources, so they can survive in an environment based on knowledge that is rapidly changing (Secundo et al, 2010). Intellectual capital and its indicators appear more tangible to the qualitative performance of an organization, which includes the performance of innovation, adaptation, operations and human resources (Ozer et al, 2014). Based on the literature review and previous research, the second hypothesis (H2) in this study is intellectual capital has a positive effect on organizational performance.…”

“…Organizational culture serves to build internal integration that is able to reduce conflict and build togetherness (Muhammad, 2017). Organizational culture is a good indicator of structural capital (Ozer et al, 2014). The work culture contains the components that are owned by employees, namely the understanding of the basic substance about the meaning of work, attitudes toward work and the work environment, behavior at work, work ethic, attitude towards time, and the way or tools used to work.…”