If You Can Measure It, You Can Manage It: A Case of Intellectual Capital

Nadeem, Muhammad; Dumay, John; Massaro, Maurizio

doi:10.1111/auar.12227

Cited by 67 publications

(154 citation statements)

References 56 publications

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“…Analyzing the data of financial institutions in Pakistan, Haris et al [40] documented that HC exhibits a positive impact on bank profitability while SC has a negative impact. Nadeem et al [41], using an adjusted-VAIC TM model, found that IC and its components (human, innovation and physical capitals) positively influence firm performance. Xu and Li [42] determined the impact of IC on firm performance in the context of China's manufacturing small and medium-sized enterprises (SMEs).…”

Section: Ic and Firm Performancementioning

confidence: 99%

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Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector

Shang

Wang

et al. 2019

Sustainability

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Intellectual capital (IC) is considered to be a main driver of organizational success in the knowledge economy. This study examines the impacts of three IC components, including human capital (HC), structural capital (SC), and relational capital (RC), on technological innovation and firm performance. Data are collected from 1112 manufacturing listed companies in China during 2013–17. Using partial least squares structural equation modeling (PLS-SEM), the results show that HC and SC exert a positive impact on firm performance while RC has a negative impact; SC has a positive influence on technological innovation while HC has a negative influence; technological innovation can enhance the firm’s performance. In addition, technological innovation partially mediates the relationship between SC and firm performance. This study will bridge the gap in research by investigating the impacts of IC components on technological innovation and firm performance in developing countries.

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Section: Ic and Firm Performancementioning

confidence: 99%

“…For the dependent variable, firm performance is measured with return on assets (ROA), consistent with previous literature [1,5,6,22,23,30,41,42,79]. ROA measures how efficiently a firm utilizes and manages its assets to produce profits during a certain period.…”

Section: Variable Measurementmentioning

confidence: 99%

Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector

Shang

Wang

et al. 2019

Sustainability

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“…Wang et al [12] argued that IC plays an important role in achieving high levels of bank efficiency in East Asia. Nadeem et al [68] presented an adjusted-VAIC model to test the impact of IC and its components (human, innovation and physical assets) on firm performance in 10 emerging and developed economies. The results showed that the impact of IC varies greatly in different countries.…”

Section: Ic and Firm Performancementioning

confidence: 99%

Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan

Haris

Yao

2019

Sustainability

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The purpose of this study is to determine and compare the relationship between intellectual capital (IC) and banks' performance in China and Pakistan. The data are acquired from listed banks in these two countries during 2010-2018. The Value Added Intellectual Coefficient (VAIC ™ ) method is applied as a measure of IC. The results show that capital employed efficiency (CEE) makes the highest contribution to bank performance in both countries. In addition, the profitability of listed Chinese banks is driven by structural capital efficiency (SCE), while human capital efficiency (HCE) positively affects bank profitability and productivity in Pakistan. In addition, we find that the lagged effect of IC has a positive impact on future bank profitability. This study supports greater investment in IC in order to further improve bank performance in emerging Asian markets.Sustainability 2019, 11, 6582 2 of 23 infrastructure, which can bring great facility for companies. Following this, for the ease of channelizing the business transactions, the Bank of China (BOC) commenced its first branch in 2017 in Karachi, the financial capital city of Pakistan. However, before this only the Industrial and Commercial Bank of China (ICBC) operated in Pakistan. Both ICBC and BOC are listed Chinese banks. China and Pakistan are emerging Asian financial markets with good neighborly relations and close cooperation [24]. In emerging markets, the financing and lending role of the banking sector is utmost important for ensuring a sustained economy [17].According to the World Bank, bank capital to assets ratio in China grows from 6.60% to 8.56%, while Pakistan witnesses a downward trend (see Figure 1). Although the nonperforming loans to total gross loans in Pakistan gradually declines over the period 2014-2017, this ratio in China is much lower than that in Pakistan (See Figure 2). Haneef et al. [25] concluded that nonperforming loans have an adverse effect on the performance of banks in Pakistan. These indicate that the Chinese banking industry is much healthier than the Pakistani banking industry, and Pakistani banks operate with relatively higher risk exposure. However, the Pakistani banking system is more open as many foreign banks operating in Pakistan compared to the Chinese banking system [26]. Recently, China has revised the Regulations on the Administration of Foreign-funded Banks to lower the threshold of establishing foreign branches in China, which can stimulate the vitality of banking sector and improve the competitiveness of Chinese and foreign financial institutions. The opening up of the Chinese banking sector will provide opportunities for Pakistani banks to establish their branches in China. Considering that the competition among banks will become severer with financial liberalization, banks will expand their operation in the international market [27]. It will require that banks fully utilize local resources to improve the competitiveness under different business environment. We choose these two countries for comparison, not ...

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“…Accounting practices do not seem to offer a solution; it has been a common remark over the years that the statements provided by financial accounting do not give a clear picture of many of the “hidden” realities that comprise a company and its business. In fact, even though it is generally accepted that investments in intangibles are important sources of future performance, restrictive accounting asset recognition rules mean that most intangible assets cannot be included in the balance sheet (Nadeem, Dumay, & Massaro, ), especially if they are internally developed. As stated by Dumay and Rooney (), IC accounting research and practice is a problematic theme.…”

Section: Introductionmentioning

confidence: 99%

Describing the process of creating an intellectual capital management framework: An interventionist case study

Costa

Santos

2019

Knowl Process Manag

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This article aims to address recent calls for a more practice-based intellectual capital (IC) research by describing the process of creating an IC framework on a real firm.The ultimate goal is to understand how this process can improve IC identification, measurement, and management within the firm, eventually contributing to add an IC perspective to its management strategy. The article takes a Portuguese subsidiary of a multinational firm as a case study. A practice-based, interventionist approach was adopted. By depicting the process of creating an IC framework, this research shows how IC can be gradually identified, recognized, and embraced by a company. The process also introduces a valuable, forward-looking perspective of the company business and may induce change through the establishment of new organizational learning routines. The article contributes to IC literature by addressing recent calls for a more practice-based, "performative" approach to IC research, thus strengthening its emerging "third stage." It also bridges the gap between theory and practice by discussing how can the IC perspective be integrated in a company's day-to-day decisions and strategic challenges. The empirical insights provided can thus be useful to managers and IC researchers alike, particularly those interested in studying IC in practice.

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If You Can Measure It, You Can Manage It: A Case of Intellectual Capital

Cited by 67 publications

References 56 publications

Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector

Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector

Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan

Describing the process of creating an intellectual capital management framework: An interventionist case study

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