Interpreting the dynamic performance effect of intellectual capital through a value-added-based perspective

dc.contributor.author Ting, Irene Wei Kiong
dc.contributor.author Ren, Chunya
dc.contributor.author Chen, Fu-Chiang
dc.contributor.author Kweh, Qian Long
dc.date.accessioned 2020-03-22T08:09:44Z
dc.date.available 2020-03-22T08:09:44Z
dc.date.copyright 2020
dc.date.issued 2020-03
dc.description This article is not available at CUD collection. The version of scholarly record of this Article is published in Journal of Intellectual Capital (2020), available online at: https://doi.org/10.1108/JIC-05-2019-0098 en_US
dc.description.abstract Purpose: The question of whether intellectual capital (IC) is beneficial to firm performance is debatable because of the diverse effects of IC and its components on firm performance. Building on the concept of pay–performance relation, this study aims to provide new insights into how changes in IC affect changes in firm performance. Design/methodology/approach: Data envelopment analysis is employed to measure firm performance, and value-added intellectual coefficient (VAIC™) is selected to evaluate the IC and its components, namely human capital efficiency (HCE), structural capital efficiency (SCE), and capital employed efficiency (CEE). Ordinary least squares regression is applied to study the relationship between changes in IC and changes in firm performance using 6,408 firm-year observations of electronics companies listed in Taiwan from 2006 to 2017. Findings: Empirical results suggest that IC efficiency and CEE significantly and negatively affect firm performance, thereby suggesting a contradictory common sense with the resource-based view on the beneficial effects of IC. However, changes in IC efficiency and HCE are significantly and positively related to changes in firm performance, including changes in firm efficiency and sales growth. Practical implications: This study suggests that managers should continuously pay attention to adjusting their IC, especially human capital (HC) for better decisions that help grow firm performance. Moreover, investors can grasp how sensitive firm performance is to IC. Originality/value: This study argues the relationship between IC and firm performance in the same vein as a pay-for-performance link, suggesting that future studies should account for increases or decreases in IC. © 2020, Emerald Publishing Limited. en_US
dc.description.sponsorship Universiti Malaysia Pahang - RDU1903110 en_US
dc.identifier.citation Ting, I., Ren, C., Chen, F. and Kweh, Q. (2020). Interpreting the dynamic performance effect of intellectual capital through a value-added-based perspective. Journal of Intellectual Capital, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JIC-05-2019-0098 en_US
dc.identifier.issn 14691930
dc.identifier.uri https://doi.org/10.1108/JIC-05-2019-0098
dc.identifier.uri http://hdl.handle.net/20.500.12519/199
dc.language.iso en en_US
dc.publisher Emerald Group Publishing Ltd. en_US
dc.relation Authors Affiliations : Ting, I.W.K., Faculty of Industrial Management, Universiti Malaysia Pahang, Gambang, Malaysia; Ren, C., Faculty of Industrial Management, Universiti Malaysia Pahang, Gambang, Malaysia; Chen, F.-C., Department of Accounting Information, Chihlee Institute of Technology, New Taipei City, Taiwan; Kweh, Q.L., Faculty of Management, Canadian University Dubai, Dubai, United Arab Emirates
dc.relation.ispartofseries Journal of Intellectual Capital;
dc.rights Permission to reuse abstract has been secured from Emerald Group Publishing Ltd.
dc.rights.holder Copyright : 2020 Emerald Publishing Limited
dc.subject Data envelopment analysis en_US
dc.subject Firm performance en_US
dc.subject Intellectual capital en_US
dc.subject Pay–performance relation en_US
dc.subject VAIC en_US
dc.title Interpreting the dynamic performance effect of intellectual capital through a value-added-based perspective en_US
dc.type Article en_US
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