Previous empirical studies confirm that intellectual capital has a significant and substantive impact on performance. The purpose of this research is to examine the interrelationships and interactions among intellectual capital components and business performance in the Portuguese banking industry. The concept of relational capital was extended to include 'stakeholder orientation' items. Model development and hypothesis testing was conducted using PLS on a sample of 253 respondents from 53 organisations. Results show a confirmation of previous studies as it relates to hypothesis testing but a difference in psychometric item evaluation given the unique geographical and sectoral context. Recommendations are then made for researchers and practitioners.
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About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.*Related content and download information correct at time of download. Purpose -The purpose of this paper is to investigate the level of intellectual capital (IC) awareness among Portuguese bank managers and which disclosure techniques are most common. The annual report is regarded by some authors as the most important vehicle of information about banks' affairs because of some specific characteristics of banks' activities. However, organizations are increasingly using their webpages to disclose a broad spectrum of information. The objectives of this study are twofold: to investigate how Portuguese bank managers perceive the impact of IC disclosure on the bank's competitiveness; and to assess the extent to which Portuguese banks voluntarily report their IC in annual reports vs webpages. Design/methodology/approach -The methodology involved in the exploratory study includes the collection of secondary data -annual reports and websites -collected from the 28 banks operating in Portugal, and semi-structured interviews from 25 banking managers. Content analysis is applied using a constructed index based on two European frameworks -Intellectus and InCaS -slightly modified to take into consideration the peculiarities of the sector. Findings -Results show higher level of IC disclosure in annual reports than that provided in websites. Human capital and structural capital are the most reported category in annual reports and, conversely, the disclosure of relational capital is higher in the webpages. Findings are found similar in comparison to various other studies on the subject which reveal very low level of IC disclosure, not yet receiving priority from the mentors of banks. Interviews reveal that not many managers recognize the need and significance of measuring and reporting IC, although it is recognized as a driver of competitiveness. For protecting business confidentiality, banks do not want to report information of sensitive nature.Research limitations/implications -The analysis is limited to a single sector. Future research can expand to other industries (e.g. manufacturing, technological, services) to enable a more comprehensive understanding of IC disclosure in Portugal. The cross-sec...
Despite the widely recognised importance of intellectual capital as a vital source of competitive advantage, there is still little understanding of how organisations actually combine their components to drive value. The purpose of this study is to examine the interrelationships among intellectual capital components within the Portuguese banking context by extending a study completed by Bontis. Several paths are identified that drive towards superior performance. Various models are assessed using a Partial Least Squares (PLS) approach given its advantages in dealing with complex models and its predictive capability. Empirical findings from this study support the proposition that intellectual capital is a driver of organisational value, but only in certain combinations.
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