Intangible assets as possible indicators for the growth of the Hungarian firms

Abstract

Purpose Intellectual capital has become one of the most important factors in the knowledge economy. It is the combination of human capital and structural capital. The purpose of this paper is to examine the effect of intellectual capital, especially the effect of structural capital on the productivity of Hungarian firms between 2007 and 2017. Design/methodology/approach This paper analyzes the impact of intellectual capital on the output of the Hungarian firms in a fixed effect dynamic model, using the lagged dependent and explanatory variables method. This study is based on annual reports of Hungarian enterprises. Findings This study proved that intellectual capital was a relevant source of the effectiveness of the firms in Hungarian industry in the examined period, and structural capital had the strongest impact on productivity of the firms. Research limitations/implications The annual report as database nonetheless bears the specificity and the limitation of the model alike. Labor costs, the proxy for human capital can measure the level only indirectly. Intangible assets, the proxy for structural capital contain more items which are optional. Practical implications The results reflect that the internally developed knowledge became the most relevant source for Hungarian firms to increase their productivity, but externally generated innovation may offer further possible sources to boost their own efficiency. Originality/value Unlike the previous empirical research in Hungary the source of variables in this model is based on the data of annual reports. This database allows to examine a larger panel investigation for a longer period than those methods which collect data on a voluntary basis, e.g. Community Innovation Survey.

The role of knowledge assets and corporate social responsibility in creating firm value

“…Initially, academic focus primarily centered on Research and Development (R&D) investments as indicators of a firm's innovation and absorptive capacities (Ebers & Maurer, 2014;Cheng & Shiu, 2020). However, the shift to prioritizing intangible assets reflects their embodiment of explicit knowledge, an aspect crucial for firm valuation, as delineated in financial reports (Katona, 2021).…”

“…In the current landscape of knowledge-driven economy, the essence of competitive advantage extends beyond operational efficiencies, pivoting crucially on the strategic management of intellectual capital and intangible assets (Katona, 2021;Wang et al, 2022), as well as stakeholder management. This evolving dynamic has propelled investments in intangible assets as a critical strategic imperative, underpinning firm competitiveness (Roth et al, 2023).…”

Research Book Intellectual Capital, Innovation, and Curriculum of Accounting Study Program Based on the Industrial Revolution 4.0

“…The goal is to be able to manage these indicators to become an important asset for the organization which is then expected to be able to improve performance, competitiveness and welfare. Several HC, SC, and RC indicators have been formulated by many experts, including : (Garcia-Alvarez et al, 2011;Hosseini & Owlia, 2016;Kale et al, 2000;Katona, 2021;Manzari et al, 2012;Molodchik et al, 2018;Namvar et al, 2010;Russell et al, 2015;Sharpe, 2001). The following is an explanation of the HC, SC, and RC indicators to form creativity, innovation capacity, form a good work team, form employee competence, employee satisfaction, employee achievement, knowledge, skills and attitude.…”