Nonlinearity in the relationship between intellectual capital and corporate performance: evidence from Vietnamese listed companies

dc.contributor.author Kweh, Qian Long
dc.contributor.author Ting, Irene Wei Kiong
dc.contributor.author Lu, Wen-Min
dc.contributor.author Le, Hanh Thi My
dc.date.accessioned 2021-08-22T07:34:07Z
dc.date.available 2021-08-22T07:34:07Z
dc.date.copyright © 2021
dc.date.issued 2021
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 (2021), available online at: https://doi.org/10.1108/JIC-03-2020-0105 en_US
dc.description.abstract Purpose: Consensus on how intellectual capital (IC) affects corporate performance is limited because of various measurement models of IC and corporate performance. This study thus aims to further the debate on the relationship between IC and corporate performance from the perspectives of nonlinearity, the capital values of IC and the use of a holistic measure of corporate performance. Design/methodology/approach: Using 1,395 firm-year observations derived from Vietnamese listed companies from 2010 to 2018, this study focuses on (1) presenting an IC model benchmarked on value-creating expenses; (2) using a directional distance function (DDF)-based stochastic nonparametric envelopment of data (StoNED) framework to scrutinize multiple performance indicators and the capital values of people, structures and relationships simultaneously; and (3) adopting firm-year cluster-robust regressions to analyze the nonlinear association between IC and corporate performance empirically with an appropriate U test. Findings: Results suggest that human capital (HC), structural capital (SC) and relational capital (RC) are the main contributors of high corporate efficiency, whereas only HC and RC contribute to high corporate profitability. These results are absent when this study employs the conventional data envelopment analysis (DEA), which is also a multidimensional framework, as the dependent variable. More importantly, IC and its components can improve corporate performance, namely, both corporate efficiency and corporate profitability up to a critical point, after which the effects would drop. Practical implications: Overall, this study highlights not only the need to invest in IC but also its associated costs. That is, policymakers also need to note the marginal cost of investing in IC, which may in the end outweigh the benefits from IC. Originality/value: This study extends IC-related studies by investigating the nonlinear relationship between IC and corporate performance. Moreover, the value of this study also lies in the multidimensional DDF-based StoNED framework. © 2021, Emerald Publishing Limited. en_US
dc.description.sponsorship Foundation of Science and Technology Development of Ton Duc Thang University / FOSTECT.2019 This research is funded by the Foundation for Science and Technology Development of Ton Duc Thang University (FOSTECT), website: http://fostect.tdtu.edu.vn , under Grant FOSTECT.2019.B.23. en_US
dc.identifier.citation Kweh, Q. L., Ting, I. W. K., Lu, W. M., & Le, H. T. M. (2021). Nonlinearity in the relationship between intellectual capital and corporate performance: evidence from Vietnamese listed companies. Journal of Intellectual Capital. https://doi.org/10.1108/JIC-03-2020-0105 en_US
dc.identifier.issn 14691930
dc.identifier.uri https://doi.org/10.1108/JIC-03-2020-0105
dc.identifier.uri http://hdl.handle.net/20.500.12519/429
dc.language.iso en en_US
dc.publisher Emerald Group Holdings Ltd. en_US
dc.relation Authors Affiliations : Kweh, Q.L., Faculty of Management, Canadian University Dubai, Dubai, United Arab Emirates; Ting, I.W.K., Faculty of Industrial Management, Universiti Malaysia Pahang, Gambang, Malaysia; Lu, W.-M., International Business Administration, Chinese Culture University, Taipei, Taiwan; Le, H.T.M., Benchmarking Research Group, Faculty of Accounting, Ton Duc Thang University, Ho Chi Minh City, Viet Nam
dc.relation.ispartofseries Journal of Intellectual Capital;
dc.rights This article is © Emerald Publishing Limited and permission has been granted for this version to appear here (https://repository.cud.ac.ae/). Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Publishing Limited.
dc.rights.holder Copyright : © 2021, Emerald Publishing Limited.
dc.subject Capital values en_US
dc.subject Corporate efficiency en_US
dc.subject Corporate profitability en_US
dc.subject Intellectual capital en_US
dc.subject Nonlinearity en_US
dc.subject StoNED en_US
dc.title Nonlinearity in the relationship between intellectual capital and corporate performance: evidence from Vietnamese listed companies en_US
dc.type Article en_US
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