Intellectual Capital and Business Performance: An Empirical Study for the Greek Listed Companies

Abstract

The aim of this study is to empirically examine the four elements of intellectual capital (human capital, customer capital, structural capital and innovation capital) and their relationship with business performance in the Athens Stock Exchange (ASE). This study was conducted based on a psychometrically validated questionnaire developed and launched by Bontis (1997) and Bontis et al. (2000). Confirmatory Factor Analysis and Structural Equation Model have been used as statistical methods to analyse the five hypotheses developed. Our results are designed to extend it to degrees consistent with those revealed by Bontis et al. (2000) for a Malaysian set of industries. In particularly, we found that: (a) human capital is important and positively associated to customer capital in both service and non-service industries; (b) customer capital has an influence in structural capital rather than in non-service industries; (c) innovation capital seems to have an important and positive relationship to structural capital, regardless of the industry type; and (d) structural capital has a positive relationship to business performance in both industry types, and especially in non-service industries.

Bridging Intellectual Capital and SMEs Internationalization through the Lens of Sustainable Competitive Advantage: A Systematic Literature Review

“…Similarly, Maditinos, Šević and Tsairidis [20] affirm that once enterprises properly use the organizational body of knowledge, they will gain a sustainable competitive edge which will later result in business performance. A pertinent usage of the structural capital would ensure the formation of knowledge-intensive groups performing higher tasks [4,26].…”

The Effects of Intellectual Capital on Financial Performance and Market Value: Evidence from Turkey

“…They found a strong, positive relationship and concluded that the companies in the sample manage intellectual capital effectively and this contributes their performance positively. Maditinos et al (2010) mention about the four elements of intellectual capital as human, customer, structural and innovation capital and they tested the inter-relationships among the elements and the relationship with business performance. They applied a psychometrically validated questionnaire to the sample composed of companies from Athens Stock Exchange and grouped as service and non-service.…”

The Impact of Intellectual Capital Disclosure and Information Asymmetry on the Cost of Equity Capital

“…This indicates that when investor will invest, they will not use regular stock capital as rate to discount dividend expected to be accepted in the future. According to Byun, Kwak, & Hwang (2008) (Byun, Kwak, & Hwang, 2008;Fairfield, Whisenant, & Yohn, 2003;Maditinos, Šević, & Tsairidis, 2010;Mohamad & Saad, 2010).…”

“…There is negative influence of relational capital towards cost of equity capital not stated as valid. Further, (Chen, Cheng, & Hwang, 2005;Maditinos, Šević, & Tsairidis, 2010;Mangena et al, 2011) concluded that the larger the corporation reveal intellectual capital in yearly report, the lower the equity cost is. It is because the investors find useful information to assess the company.…”