Intellectual capital: a determinant of firms' operational efficiency

Abstract

<jats:sec><jats:title content-type="abstract-subheading">Purpose</jats:title><jats:p>Intellectual 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.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title><jats:p>For 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 (VAIC<jats:sup>TM</jats:sup>) as a proxy to measure IC. Correlation and panel data regression have been used in order to examine the relationship.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Findings</jats:title><jats:p>The 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.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Practical implications</jats:title><jats:p>The 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.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Originality/value</jats:title><jats:p>The 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.</jats:p></jats:sec>

A gestão do conhecimento e sua influência na imagem e reputação de empresa municipal de serviços de iluminação pública / Knowledge management and its influence on the image and reputation of a municipal public lighting service company

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Protection of Bank's Wealth: How is Islamic Banks's Financial Performance Affected by Asset Quality and Operational Efficiency

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Impact of Knowledge-Based HRM Practices on Organizational Performance

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