IT as a part of intellectual capital and its impact on the performance of business entities

Abstract

Abstract. The relevant literature generally views intellectual capital as comprising three components -human, relational and structural capital. These components are identified and classified by their sub-components, meaning that human, relational and structural capital cannot be observed separately. Whereas human capital is most often treated for its frequent identification with intellectual capital and less often with relational capital, this paper we discuss structural capital and, in particular, as one of the sub-components that refers to information technology (IT). The relevant literature views an IT subcomponent as an integral part of almost any classification of structural capital. IT items are intertwined with and are complementary to specific human and relational capital items, and it is common to observe them under the same light. However, because of its presumed importance and influence on other forms of intellectual capital and financial performance, this paper will derive IT from structural capital and treat it as a component that supports the other ones. We still assume that intellectual capital is a logical entity consisting of the three mentioned components, but our intention is also to highlight and prove the importance of IT. Our assumptions were tested in a model under several hypotheses, and most of them were supported. The model is derived from a study conducted on a random sample of Croatian businesses, by applying PLS-SEM and importance-performance analysis.

Employees’ Perceptions on the Relationship of Intellectual Capital and Business Performance of ICT Companies

“…The formative measurement model measures the influence of manifest variables on the latent constructor [49,57,63,64]. Finally, the evaluation of the reflective and formative model, as well as the evaluation of the structural model, is performed according to certain reference values and rules [10,49,56,57,59,[65][66][67][68][69][70][71][72][73][74][75]. The data were processed in SPSS (https: //www.ibm.com/products/spss-statistics) (accessed on 20 August 2021), version 20 and Smart PLS software v.3.2.Ringle [69].…”

A Multidimensional View of Intellectual Capital and Dynamic Innovative Performance

“…What this means is that the medical centre will lose relational capital when patients become dissatisfied with the therapy and abandon it owing to its length and the unpleasantness of its side effects. It is possible that the resources that might be used through the connections under evaluation have quite different features of relational capital ( Černe and Etinger 2017). Improvements in the organization's relational capital reflect the calibre of its members and the depth of communication between them (Bontis et al 2018).…”

Intellectual Capital and Innovation Performance: Systematic Literature Review

“…The characteristics of relational capital may vary significantly between the relations, subject to review and resources used in the relations ( Černe and Etinger 2017). Any enhancement in the relational capital of the organization is an indication of the excellence of its employees and enriched knowledge exchange with collaborators (Bontis et al 2018).…”