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

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dc.contributor.authorTing, Irene Wei Kiong
dc.contributor.authorRen, Chunya
dc.contributor.authorChen, Fu-Chiang
dc.contributor.authorKweh, Qian Long
dc.date.accessioned2020-03-22T08:09:44Z
dc.date.available2020-03-22T08:09:44Z
dc.date.copyright2020
dc.date.issued2020-03
dc.descriptionThis 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-05-2019-0098en_US
dc.description.abstractPurpose: 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.sponsorshipUniversiti Malaysia Pahang - RDU1903110en_US
dc.identifier.citationTing, 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-05-2019-0098en_US
dc.identifier.issn14691930
dc.identifier.urihttps://doi.org/10.1108/JIC-05-2019-0098
dc.identifier.urihttp://hdl.handle.net/20.500.12519/199
dc.language.isoenen_US
dc.publisherEmerald Group Publishing Ltd.en_US
dc.relationAuthors 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.ispartofseriesJournal of Intellectual Capital;
dc.rightsPermission to reuse abstract has been secured from Emerald Group Publishing Ltd.
dc.rights.holderCopyright : 2020 Emerald Publishing Limited
dc.subjectData envelopment analysisen_US
dc.subjectFirm performanceen_US
dc.subjectIntellectual capitalen_US
dc.subjectPay–performance relationen_US
dc.subjectVAICen_US
dc.titleInterpreting the dynamic performance effect of intellectual capital through a value-added-based perspectiveen_US
dc.typeArticleen_US

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