Interrelationships between intellectual capital and performance

Abstract

Purpose -The aim of this paper is to raise an awareness of intangible assets among large manufacturing firms in Thailand. As a result, the research is to examine empirically the effects of intellectual capital (IC), and its key components (e.g. human capital, structural capital, and innovation capital) on a manufacturing firm's industrial operations and performance. Design/methodology/approach -The required data for this research are collected from leading manufacturing firms' annual reports. These firms are listed in stock exchange of Thailand 100. The value added intellectual coefficient (VAIC) is adapted to measure IC. Then, the co-relation analysis and multi-regression model are applied to learn more about the roles of VAIC and its impacts on a manufacturing firm's performance. Findings -IC positively and significantly affects a manufacturing firm's performance. It impacts all four performance indicators under study, i.e. return on equity, return on assets, revenue growth, and employee productivity. In addition, based on the relatively high adjusted R 2 , human capital exhibits the relationships with employee productivity. Originality/value -The findings highlight the role of IC in strengthening a manufacturing firm's long-term competitiveness advantage. The results from the paper have helped develop policy initiatives for Department of Industrial Work in Thailand such as tax scheme and incentives for R&D spending, promotion of university partnerships for R&D, and training for more effective knowledge management practices.

Intellectual Capital and Firms’ Financial Performance: A European Empirical Study‬‬‬‬

“…Efficient use of firms" IC enhances their FP. These results are in line with previous studies (Chen et al, 2005;Janosevic & Dzenopoljac, 2012;Phusavat, Comepa, Sitko-Lutek, & Ooi, 2011;Riahi-Belkaoui, 2003;Tan et al, 2007). Additionally, RDintensity, with a positive impact on ROA, suggests that firms with higher investment in R&D have greater levels of performance.…”

An investigation into intellectual capital efficiency and export performance of firms in India

“…They find a strong role of exports and human capital in the determination of long-run economic growth of semi-industrialised countries, thereby pitching in for an increasing investment in human capital. Phusavat et al (2011) study the impact of innovation capital and other IC components on operations and performance of firms in Thailand; they find a significant positive relationship. Narwal et al (2014) provide evidence between the positive link between human capital, innovation and FDI inflows in nine developed and developing countries.…”

The Impact of Corporate Social Responsibility on the Firm’s Financial Performance: The Case of Publicly Listed Companies in the United Arab Emirates

“…Empirical evidence does not, consistently support measurement and disclosure theories, and the results found appear to be contradictory [1,18]. To the knowledge of the researcher gained through a preliminary investigation of the literature it is believed that detailed research focused on testing the interactive effects of corporate social responsibility elements on financial performance in the publicly listed companies in the UAE has yet to be completed.…”