This paper evaluates the effect of intellectual capital (IC) on firm financial performance in the service sector in an emerging country, Vietnam. This research is dissimilar from earlier ones for the following reasons: (i) this is the first study of IC’s impact on service firms at different knowledge intensity levels, sizes, and ownerships in an emerging country, Vietnam; (ii) it expresses empirical evidence in details of service activities, particularly the research and development, financial, and technology services that play significant roles for the development of emerging countries; (iii) it examines the effects of the gender issue, firms’ responsiveness to the government and employees, and market concentration. Applying the two-step system GMM model for the period 2005–2014, the results express that IC components generally had significant impacts on firm performance. Human capital efficiency had the strongest positive impact while capital employed efficiency had the second strongest impact. The impact of structural capital efficiency was inconsistent, depending on the knowledge intensity levels and the types of service activities. IC is more efficient for knowledge-intensive sub-sectors than the less knowledge-intensive ones. IC efficiencies differ among knowledge intensity levels, sizes, and ownerships, suggesting that policy makers and firm leaders should implement corresponding solutions.
Purpose: This study contributes evidence on the impact of IC and its components for emerging countries, the case of Vietnam. Design/methodology/approach: The research measures the value-added intellectual coefficient and applies the two-step system GMM model for the period 2005-2014. Findings: Findings imply that IC contributes significantly to the industrial firm performance. Industrial firm performance is positively affected by Human capital efficiency (HCE) and Capital Employed Efficiency (CEE). Generally, Structural capital efficiency (SCE) has an insignificant effect on the industrial firm performance. Impact of IC efficiency depends on the internal and external factors. The impacts of IC efficiencies differ among levels of knowledge intensity. Generally, HCE is more important than CEE. The impact of IC on industrial firm outcomes depends on knowledge intensity levels. The more knowledge intensive, the stronger impact of IC is. Only high knowledge intensive firms benefit from all three components of IC efficiency. HCE and CEE are most effective for firms with high knowledge intensity. SCE is strongest for firms at low knowledge intensity. Only CEE contributes to industrial firms at all knowledge intensity levels. HCE is insignificant for firms at low knowledge intensity, while SCE is insignificant for firms at medium level. Research limitations/implications: The paper examines only one variable representing for firm financial performance, ROA. Controlled variables are only at industrial level, not at broader levels, such as provincial or national levels. Originality/value: Investigating IC will contribute to literature of levels of investment in tangible and intangible assets. It helps firm leaders and policymakers to comprehend the significant role of IC as well as the knowledge economy, then properly reallocate intellectual resources. Firm leaders and policymakers should focus on HCE and CEE which driver significantly value added. The findings suggest firm leaders which component of intellectual capital they should invest corresponding to various level of knowledge intensities.
This paper focuses on the evaluation of the impact of the fiscal policy on the growth of Vietnam at the provincial level. A fiscal policy plays a huge role in a national economy. Policy-makers often use flexible fiscal and monetary policies to achieve the overall goal of economic growth. In order to assess the impact of the fiscal policy instruments on economic growth, integrated analyses combined with quantitative analyses are used in the paper so as to find the relationship between the key expenditure items. The government has an impact on economic growth. The results and methodology will elicit quantitative approaches in policy reviews.
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