Organizational capital, intellectual capital and cost stickiness (evidence from Iran)

Abstract

Purpose The purpose of this paper is to identify the relationship between organizational capital and the subsets of organizational capital (intellectual capital (IC)) cost and cost stickiness. Design/methodology/approach This study is causal correlational research. The data related to the company’s financial statements were collected using the Rahavard Novin Software and www.rdis.ir. In this study, panel data were run with the use of Eviews 8, in order to test the hypotheses. The ordinary least-squares method is used in this study to estimate the parameters of the model. Findings The results obtained from the study show that there is a significant relationship between organizational capital and cost stickiness. However, there is no significant difference between high and low rank in terms of organizational capital and cost stickiness. In addition, there is a significant difference between IC and cost stickiness. Moreover, there is no significant difference between the components of IC and cost stickiness. Also, IC has an effect on the intensity of the relationship between organizational capital and cost stickiness. Originality/value This study explores the relationship between organizational capital and the subsets of IC and cost stickiness. Independent variables used in this study include organizational capital, IC and its components in the Pulic model, i.e. the efficiency of capital employed, the efficiency of human capital and the efficiency of structural capital.

Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry

“…It is generally believed that the VAIC TM model has been widely used by scholars to measure IC efficiency of the firms in both academic and practical studies [13,21,25,26,[33][34][35][36][37][38][39][40][41][42][43]. First, this model is easy to calculate and standardized, which enables effective comparison across firms and countries [33].…”

The impact of intellectual capital on SMEs’ performance in China

“…Among these, Pulic's VAIC TM model is widely adopted by many researchers (e.g. Firer and Stainbank, 2003;Firer and Williams, 2003;Chen et al, 2005;Goh, 2005;Kamath, 2007;Tan et al, 2007;Xu et al, 2017;Tran and Vo, 2018;Xu and Wang, 2018) as a measure of IC, which provides a standardized and integrated measure and allows comparison between industries and countries (Nazari and Herremans, 2007;Phusavat et al, 2011;Mohammadi and Taherkhani, 2017). Bornemann et al (1999) argued that data used by VAIC TM model are easily obtained and more objective, as they are sourced from audited corporate financial reports.…”

Cost stickiness and firm profitability: A study in Saudi Arabian industries

“…Moreover, the capital of an organization (including intellectual capital) influences cost stickiness. There is a significant association between the two, but there is no significant difference between high and low intensity of capital (Mohammadi & Taherkhani, 2017). Further, Argiles-Bosch et al (2017) studied the impact of an increase in sales and profitability trade-off on cost stickiness.…”