PurposeThe purpose of this paper is to examine the intellectual capital (IC) performance of the Australian Financial Sector for the period 2006‐2008. It also aims to examine the relationship between IC performance and the financial performance of the financial sector.Design/methodology/approachThe value added intellectual coefficient (VAIC) approach developed by Pulic is used to determine the IC performance of the Australian financial sector. The required data to calculate different constituents of IC was obtained from the annual reports of Australian Financial Sector companies.FindingsThe value creation capability of financial sector in Australia is highly influenced by human capital. About two thirds of the sample companies have very low levels of intellectual capital efficiency. The performance of various components of VAIC and overall VAIC differs across all subsectors in the financial sector. Investment companies have high value VAIC due to higher a level of human capital efficiency, as compared to banks, insurance companies, diversified financials and RIETs. Insurance companies are more focussed on physical capital rather than human and structural capital leading to lower VAIC.Research limitations/implicationsThe paper analyses IC performance of only one sector of the Australian economy and there is a relatively narrow three‐year period for the data collection. However, a comparative analysis of various sub sectors in the Australian financial sector justifies the contributions made by this study.Practical implicationsThe findings may serve as a useful input for financial institutions to apply knowledge management in their institutions and in addressing the factors affecting IC performance in order to maximise their value creation. It will also help the management of companies in other sectors, especially those in knowledge‐based industries, in understanding the contributions of various components of intellectual capital in their growth.Originality/valueThis is the first paper that examines the relationship of intellectual capital performance with financial performance of financial sector companies in Australia.

PurposeThe purpose of this paper is to examine the intellectual capital (IC) performance of Australian banks for the period 2005‐2007. It also aims to examine the relationship amongst various constituents of IC performance.Design/methodology/approachThe value added intellectual coefficient (VAIC™) approach developed by Pulic is used to determine the IC performance of the Australian banks. The required data to calculate different constituents of IC was obtained from the annual reports of Australian banks.FindingsThe paper reveals that VAIC™ has a significant relation with human costs and the value addition made by the Australian banks. All Australian owned banks have relatively higher human capital efficiency than capital employed efficiency and structural capital efficiency. The size of the bank in terms of total assets, total number of employees and total shareholders equity has little or no impact on the IC performance of the Australian owned banks.Research limitations/implicationsThe paper analyses IC performance of only 11 Australian owned banks. However, the more than 90 per cent market share enjoyed by these banks still promises a degree of validation of the results of the paper from the Australian perspective or similar banking structure in some countries.Practical implicationsThe findings may serve as a useful input for bankers to apply knowledge management in their institutions and in addressing the factors affecting IC performance in order to maximise their value creation. The findings of the study would also provide some information to the stakeholders and potential investors to assess the value creation capabilities of this group of banks.Originality/valueThis is the first paper that examines the relationship of VAIC™ and the size of the firms for Australian owned banks in Australia.

Purpose – The purpose of this paper is to measure the intellectual capital performance of Indian banks and established a relationship between intellectual capital and return on assets (ROA). The paper also compared the intellectual capital performance of public sector and private sector banks. Design/methodology/approach – This study is based on secondary data from the top 20 Indian banks. Ten banks were selected from each of the public and private sectors on the basis of paid-up equity capital. The analysis was made using the value added intellectual coefficient, the coefficient of variation, exponential growth rates, trend analysis, Yule’s coefficient, the coefficient of correlation, the F-test and the t-test. Findings – The study revealed that private sectors have performed relatively better regarding the creation of total information coefficient (IC). However, the ROA was still below the international benchmark of > 1 percent. The major cause of the lower IC and the reduced ROA is disproportionate to the increase in capital employed and escalating non-performing assets in the Indian banking sector. Practical implications – The study focussed on managers and identified the causes of lower performance. It proposed numerous strategies to improve the aggregate score of IC, which is closely related to bank profitability. Originality/value – This is the first study to make a comparative analysis of intellectual capital performance in public and private sector banks in India and in addition to the traditional style of measuring sectoral performance. Further, the study employed new statistical tools, such as Yule’s coefficient of association, to establish the association between performance variables.

Purpose -The purpose of this paper is to investigate and compare the voluntary reporting of intellectual capital (IC) by the top 20 software and technology sector companies in a developing nation, India, and a developed nation, Australia. The paper aims to highlight the differences in IC disclosure practices of the companies operating in two different economies. Design/methodology/approach -The study investigates the top 20 firms by market capitalisation listed on the Bombay Stock Exchange in India and the Australian Stock Exchange in Australia in the year 2007-2008. Using the content analysis method, the paper reviews the annual reports of these firms to determine IC disclosure trends in India and Australia. Statistical tools and graphs have been used to compare and contrast ICD disclosures in two countries. Findings -The study has identified IC disclosure differences between Indian and Australian firms, and reports disclosures by Indian companies are on a higher scale than Australian Software and Technology Sector companies. However, Levels of voluntary IC disclosure are found to be low in both the nations and most of the disclosures are declarative in nature. Research limitations/implications -This lack of consistency in reporting practices makes comparisons across countries difficult. The paper emphasises the need for a uniform and consistent framework for the reporting of intellectual capital items. Practical implications -The results of this exploratory study on the knowledge based industrial sector can be used by researchers to explore different types of IC reporting initiatives pursued across specifically knowledge based industrial sectors. Originality/value -This study offers insights into comparative trends in IC disclosure practices of software and technology sector companies operating in a developed and a developing country.

PurposeThis study aims to explore the extent to which companies rely on sustainability management control systems (SMCS) to translate corporate social responsibility (CSR) into superior performance building upon the premise of the natural resource orchestration perspective.Design/methodology/approachData were collected based on a survey data set from 118 Chief Financial Officers of publicly listed companies in Iran. The theoretical model was tested using partial least squares structural equation modeling (PLS-SEM, SmartPLS 3.0) as a method that enjoys minimum demands concerning normality assumptions and sample size.FindingsThe findings support the full mediation effect of SMCS on the relationship between CSR and organizational performance. This implies that CSR affects performance only through the mediating role of SMCS.Practical implicationsThe central premise in the proposed theoretical framework is that the utilization of proper management control mechanisms (i.e. SMCS) can help the organization to better synchronize, measure and manage – i.e. “orchestrate” – the social, environmental and economic impacts, and this, in turn, leads to improved organizational performance.Originality/valueTo the best of the authors’ knowledge, this is the first study of its kind, building on a unique synthesis of the agency cost perspective and resource orchestration theory, to introduce the “natural resource orchestration” approach for examining the intervening role of SMCS between CSR and organizational performance.