Purpose
The purpose of this paper is to investigate the influence of intellectual capital (IC) on financial performance and, in turn, to provide insights into its impact on emerging economies.
Design/methodology/approach
Data were collected from 34 textile firms in Bangladesh between 2013 and 2017. The IC efficiency, through value-added intellectual coefficient (VAIC) model, and its impact on financial performance, through return on assets (ROA), return on equity and asset turnover (ATO), was examined using descriptive statistics and multiple regression techniques. The analysis is based on secondary data obtained from annual reports.
Findings
The results indicate the impact of VAIC components on financial performance and also demonstrate diverse relationships with changes in financial indicators. The VAIC components significantly influenced productivity outcomes, with tangible capital playing a major role in both productivity and profitability. Moreover, it was found that structural capital had a considerable effect on ATO and ROA with human capital indicating an insignificant impact on all financial performance indicators.
Research limitations/implications
The research outcome is specific to the textile industry in emerging economies. The study may guide future research on IC performance in textile firms and cross-industry comparisons.
Practical implications
Managers, firm owners and regulators need to align IC to performance management to sustain the competitive advantage in globalised competitive settings.
Originality/value
The study provides an empirical evidence and extends knowledge of IC utilisation for enhancing the financial performance of the textile firms in emerging economies.
Purpose
The purpose of this paper is to, the first of its kind, investigate the relationship between the intellectual capital efficiency and organisational performance of the pharmaceutical sector in Bangladesh, an emerging economy that enjoys Trade-Related Aspects of Intellectual Property Rights (TRIPS) relaxation.
Design/methodology/approach
The study used hand-picked data from annual reports for five years. The relationship between efficient use of intellectual capital and corporate performance was examined through the practical use of human capital, structural capital and capital employed. Multiple regressions were used to assess their impact on financial performance – specifically, return on assets, return on equity, asset turnover and market-to-book value.
Findings
Value-added intellectual coefficient components (i.e. human capital, structural capital and capital employed) significantly explained asset turnover and return on assets but failed to predict the return on equity outcome. Additionally, asset turnover was negatively influenced by structural capital and positively influenced by capital employed. The return on assets was mostly affected by variation in human capital. Intellectual capital did not predict market-to-book value or investment decisions.
Practical implications
This paper provides useful resources for evaluating the financial performance and value creation of companies in emerging economies that enjoy TRIPS exemptions; this research could also be extended using cross-industry comparisons. The findings have theoretical and practical implications, particularly for the pharmaceutical industry in emerging economy contexts, and for managers globally.
Originality/value
This study is among only a few that have reported on the relationship between intellectual capital efficiency and value creation in emerging economy contexts.
Sustainability is not just a “buzzword” but refers to the ideal business strategy for encouraging sustainable behavior for remaining relevant and competitive. Managers of organizations are increasingly expected to duly consider and demonstrate the desired social and environmental intentions of translating leadership strategies into sustainable practices. Studies on employees' voluntary environmental behavior (VEB) are increasing in number, in that it is believed that behavior can contribute to achieving organizational sustainability strategy. However, despite the studies being published on this emerging field, leadership is a missing link regarding the psychological mechanism through which VEB can be defined and refined. Drawing on the theories of social learning and social exchange, this study seeks to establish the impact of ecocentric leadership (EL) on VEB and the mediating role of psychological green climate (PGC) in this nexus. Data were collected from wide‐ranging business organizations in Bangladesh through a self‐administered survey questionnaire. The results indicate that EL wields a significant direct influence on VEB. Moreover, EL through the mediating effect of PGC indirectly shapes VEB. The study contributes original insights to the discussions and debates on strategic leadership and climate accountability. Implications of ecocentric strategic leadership and recommendations for future research are discussed.
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