Does Intellectual Capital Explain the Financial Performance of Malaysia MFIs?

Hashim, Maryam Jameelah; Alhabshi, Syed Musa Syed Jaafar; Ishar, Nor Irvoni Mohd

doi:10.24191/smrj.v15i2.4967

Cited by 3 publications

(7 citation statements)

References 27 publications

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“…The success of the business strategy that is implemented is highly dependent on the quality of the human capital owned. This research by (Hashim et al, 2018), (Effiom, 2020, (Ratten, 2020), (Sun, 2021), (Farace, 2015), (Syarifah et al, 2020) (Akpan, 2021), (Sia et al, 2016). By implementing digitalization, business actors, including MSMEs, will improve company performance by changing old business processes and replacing them with new ones.…”

Section: The Effect Of Human Capital On Msmes Financial Performance D...mentioning

confidence: 91%

Loan Restructuring, Human Capital and Digital towards MSME Performance in the COVID-19 Pandemic

Purnamawati

Yuniarta

2021

APMBA

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The contribution of MSMEs in the Indonesian economic during the Covid-19 pandemic contribute to the stability of the economic. The purpose of this study was to determine the effect of restructuring people's business loans (KUR/Kredit Usaha Rakyat), human capital and the digital ecosystem on the performance of MSMEs during the COVID-19 pandemic. This quantitative research method uses primary data obtained from questionnaire data and measured by a Likert scale. The population of this research is SMEs using KUR in Bali Province as many as 21,570, and the research sample obtained as many as 350 MSMEs samples. Questionnaires as research data were collected and distributed online in the google form and processed by multiple linear regression analysis using SPSS version 23. This study shows that the restructuring of KUR, human capital and digital ecosystems has a positive and significant impact on the performance of MSMEs during the pandemic COVID-19. They support its performance, including MSMEs, which can have superior human resources or human capital, to have a competitive advantage. Indicators of human capital that can improve MSME performance, especially financial performance, are knowledge, abilities and skills. Government regulations through the Financial Services Authority (OJK) have shown positive results. The government is trying to ease the burden on MSMEs by providing credit restructuring, interest subsidies, and loans through banks. Some MSMEs began to show improvement in their performance, one of which was financial performance.

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Section: The Effect Of Human Capital On Msmes Financial Performance D...mentioning

confidence: 91%

Loan Restructuring, Human Capital and Digital towards MSME Performance in the COVID-19 Pandemic

Purnamawati

Yuniarta

2021

APMBA

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“…The determination of the MFIs' wealth and also its sustainability are very crucial indeed. Thus, the practice by firms in recognizing its intangible assets, particularly the capabilities and expertise of the employees must be encouraged and nurtured (Maryam et al, 2018).…”

Section: Performance Of Malaysian Microfinance Institutionsmentioning

confidence: 99%

Bank Specific as Moderator Between Intellectual Capital and The Performance of Malaysian Microfinance Institutions

Hashim¹,

Khamis²,

Arifin³

et al. 2022

IJEM

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This study aimed to investigate whether intellectual capital (IC) impacts the performance of microfinance institutions (MFIs). This study also attempted to uncover the effect of microfinance institution specification (banks or non-banks) as a moderating variable in the association between intellectual capital and MFIs performance. There were 300 respondents, however, only 156 managers answered the structured questionnaires that were sent out using the purposive sample technique. The partial least square structural equation modeling (PLS-SEM) was used to analyze the research model in this study. The findings show that human capital and structural capital have a favorable impact on MFI performance. This influence, however, does not extend to the MFIs' customer capital and social capital. Furthermore, the research model can explain 59.9 percent of the significant variance in MFI performance. This study contributes to the theoretical expansion of the resource-based view (RBV) in forecasting the MFIs success. The framework suggested in this study can be used as a reference to assist MFIs management in selecting relevant intellectual capital aspects to improve Malaysian MFIs.

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“…Assessing the performance of MFIs involves examining its development towards accomplishing its goals. Therefore, MFIs need to ascertain their challenges to sustain and improved their operations (Hashim, Alhabshi & Mohd Ishar, 2018). MFIs are deemed 'social enterprise' whose primary mission is to provide financial services for underprivileged societies to reduce poverty (Ahmed, Brown, & Williams, 2013).…”

Section: Microfinance Institutions Performancementioning

confidence: 99%

“…As a result, these firms will have a more sustained competitive advantage. Furthermore, MFIs should portray sensible consideration for their institutions by taking care of their IC and encouraging the practice of recognizing intangible assets, especially from the aspects of their employees' expertise and capabilities (Hashim, Alhabshi & Mohd Ishar, 2018). Scholars argue that nonsubstitutable resources will become a source of competitive advantage in a growing economy.…”

Section: Intellectual Capitalmentioning

confidence: 99%

“…Past studies also reported the differences between other businesses, such as a study on public and private banks in Pakistan, which discovered that public banks' performance was more unsatisfactory than that of private banks due to inadequate utilization of capital or incompetent management of intellectual capital (Zia, Muhammad, Arbab, Shahzad, & Bilal, 2014). Moreover, Hashim et al (2018) highlighted that the human element is crucial in MFIs value creation. The institutions should encourage their managers to practice recognizing their intangible assets as a whole.…”

Section: Conclusion and Recommendationsmentioning

confidence: 99%

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Intellectual capital components and its relationship to Microfinance institutions’ performance

Hashim¹,

Arifin²,

Kamarudin³

et al. 2020

ABRIJ

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In a majority of banking and non-banking institutions, intellectual capital (IC) is one of the prominent factors that contributes to the development of knowledge-based economy and increase in competitiveness. However, there is an ambiguity in whether a firm’s precious resources could guarantee the success of new strategies. Thus, this study was undertaken to examine the significant effect of intellectual capital on the performance of MFIs. This study also examined whether the MFIs specification could have a moderating effect on the relationship between intellectual capital and MFIs’ performance. The current study used the PLS-SEM to analyze the research model and found that it explains 43.6 % of the substantial amount of variance in the performance of MFIs. Theoretically, the study extends the resource-based view (RBV) in projecting the MFIs’ performance. The empirical results show that there is a significant relationship between IC and MFIs’ performance for both banking and non-banking MFIs.

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Does Intellectual Capital Explain the Financial Performance of Malaysia MFIs?

Cited by 3 publications

References 27 publications

Loan Restructuring, Human Capital and Digital towards MSME Performance in the COVID-19 Pandemic

Loan Restructuring, Human Capital and Digital towards MSME Performance in the COVID-19 Pandemic

Bank Specific as Moderator Between Intellectual Capital and The Performance of Malaysian Microfinance Institutions

Intellectual capital components and its relationship to Microfinance institutions’ performance

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