Intellectual capital's role in shaping corporate financial performance from a knowledge-based theory perspective
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Aug 14, 2023
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Abstract
Performance is a condition that is always a concern for managers. Conditions that are easy to "pronounce" but "difficult" to realize. This requires knowledge that exists in all components of the company. This study investigates the connection between IC and the organization's financial success. Companies in the energy categories (Oil, Gas, and Coal) listed on the Indonesia Stock Exchange make up the sample for this study (IDX). The companies selected to be sampled routinely report their financial statements from 2010-2022. In addition, the company did not suffer losses in the study period. Data is a financial statement that is then analyzed by regression analysis. The results showed that all IC items (public model) affect financial performance. However, SCE has a negative influence. This shows that the structure that the company is building allows for changes. This is because SCE is the primary support of HCE in operations.
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How to Cite
Tasrim, T., Jayanti, A., Estiani, E., & Sudibyo, T. D. S. (2023). Intellectual capital’s role in shaping corporate financial performance from a knowledge-based theory perspective. Enrichment : Journal of Management, 13(3), 2041-2049. https://doi.org/10.35335/enrichment.v13i3.1570
References
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Allameh, S. M. (2018). Antecedents and consequences of intellectual capital: The role of social capital, knowledge sharing and innovation. Journal of Intellectual Capital, 19(5), 858–874. https://doi.org/10.1108/JIC-05-2017-0068
Alrowwad, A., Abualoush, S. H., & Masa’deh, R. (2020). Innovation and intellectual capital as intermediary variables among transformational leadership , transactional leadership , and organizational performance. Journal of Management Developmen, 39(2), 196–222. https://doi.org/10.1108/JMD-02-2019-0062
Alvino, F., Vaio, A. Di, Hassan, R., & Palladino, R. (2021). Intellectual capital and sustainable development : a systematic literature review. Journal of Intellectual Capital, 22(1), 76–94. https://doi.org/10.1108/JIC-11-2019-0259
Asiaei, K., Barani, O., Bontis, N., & Arabahmadi, M. (2020). Unpacking the black box How intrapreneurship intervenes in the. Journal of Intellectual Capital, 1469–1930. https://doi.org/10.1108/JIC-06-2019-0147
Bayraktaroglu, A. E. (2019). Intellectual capital and firm performance : an extended VAIC model. Journal of Intellectual Capital, 20(3), 406–425. https://doi.org/10.1108/JIC-12-2017-0184
Bellucci, M., Marzi, G., & Ciampi, F. (2020). Journal of Intellectual Capital : a review of emerging themes and future trends trends. Journal of Intellectual Capital. https://doi.org/10.1108/JIC-10-2019-0239
Beretta, V., Demartini, C., Trucco, S., & Internazionali, S. (2019). Does environmental , social and governance performance influence intellectual capital disclosure tone in integrated reporting ? Journal of Intellectual Capital, 20(1), 100–124. https://doi.org/10.1108/JIC-02-2018-0049
Brusoni, S., Prencipe, A., & Pavitt, K. (2001). Knowledge specialization, organizational coupling, and the boundaries of the firm: Why do firms know more than they make? Administrative Science Quarterly, 46(4), 597–621. https://doi.org/10.2307/3094825
Chowdhury, L. A. M., Rana, T., & Azim, M. I. (2019). Intellectual capital efficiency and organisational performance In the context of the pharmaceutical industry in Bangladesh. Journal of Intellectual Capital, 20(6), 748–1930. https://doi.org/10.1108/JIC-10-2018-0171
Demartini, M. C., & Beretta, V. (2019). Intellectual capital and SMEs ’ performance : A structured literature review. Journal of Small Business Management, 00(00), 1–45. https://doi.org/10.1080/00472778.2019.1659680
F-Jardón, C. M., & Martos, M. S. (2009). Intellectual capital and performance in wood industries of Argentina. Journal of Intellectual Capital, 10(4), 600–616. https://doi.org/10.1108/14691930910996670
Ferreira, A., & Franco, M. (2017). The Mediating Effect of Intellectual Capital in The Relationship Between Strategic Alliances and Organizational Performance in Portuguese Technology-Based SMEs. European Management Review, 14(3), 303–318. https://doi.org/10.1111/emre.12107
Han, Y., & Li, D. (2015). Effects of intellectual capital on innovative performance: The role of knowledge-based dynamic capability. Management Decision, 53(1), 40–56.
Jardon, C. M., & Martos, M. S. (2012). Intellectual capital as competitive advantage in emerging clusters in Latin America. Journal of Intellectual Capital, 13(4), 462–481. https://doi.org/10.1108/14691931211276098
Kengatharan, N. (2019). A knowledge-based theory of the firm Nexus of intellectual capital , productivity. International Journal of Manpower. https://doi.org/10.1108/IJM-03-2018-0096
Kesse, G., & Pattanayak, J. K. (2019). Borsa _ Istanbul Review Does investing in intellectual capital improve productivity ? Panel evidence from commercial banks in India. Borsa Istanbul Review, 19(3), 219–227. https://doi.org/10.1016/j.bir.2019.03.001
Khalique, M., Bontis, N., Abdul Nassir bin Shaari, J., & Hassan Md. Isa, A. (2015). Intellectual Capital in Pakistani Small Medium Enterprises. Journal of Intellectual Capital, 16(1), 224–238.
Kianto, A., Sáenz, J., & Aramburu, N. (2017). Knowledge-based human resource management practices, intellectual capital and innovation. Journal of Business Research, 81(December 2016), 11–20. https://doi.org/10.1016/j.jbusres.2017.07.018
Mahmood, T., & Shujaat, M. (2020). Technological Forecasting & Social Change Balancing innovation and exploitation in the fourth industrial revolution : Role of intellectual capital and technology absorptive capacity. Technological Forecasting & Social Change, 160(August), 120248. https://doi.org/10.1016/j.techfore.2020.120248
Mubaraq, S., & Ahmed Haji, A. (2014). The impact of corporate governance attributes on intellectual capital disclosure: A longitudinal investigation of Nigerian banking sector. Journal of Banking Regulation, 15(2), 144–163. https://doi.org/10.1057/jbr.2013.15
Nadeem, M., & Massaro, M. (2018). If You Can Measure It , You Can Manage It : A Case of Intellectual Capital. Australian Accounting Review, 00(December), 1–13. https://doi.org/10.1111/auar.12227
Nirino, N., Ferraris, A., Miglietta, N., & Invernizzi, A. C. (2020). Intellectual capital : the missing link in the corporate social responsibility – financial performance relationship capital. Journal of Intellectual Capital, 1469–1930. https://doi.org/10.1108/JIC-02-2020-0038
Obeidat, A. M., Abualoush, S. H., Irtaimeh, H. J., Khaddam, A. A., & Bataineh, K. A. (2018). The role of organisational culture in enhancing the human capital applied study on the social security corporation. International Journal of Learning and Intellectual Capital, 15(3), 258–276. https://doi.org/10.1504/IJLIC.2018.094722
Ousama, A. A. (2020). The association between intellectual capital and fi nancial performance in the Islamic banking industry An analysis of the GCC banks. International Journal of Islamic and Middle Eastern Finance and Management, 13(1), 75–93. https://doi.org/10.1108/IMEFM-05-2016-0073
Pulic, A. (2004). Intellectual capital – does it create or destroy value? Measuring Business Excellence, 8(1), 62–68. https://doi.org/10.1108/13683040410524757
Rehman, A. U., Aslam, E., & Iqbal, A. (2022). Borsa _ Istanbul Review Intellectual capital efficiency and bank performance : Evidence from islamic banks. Borsa Istanbul Review, 22(1), 113–121. https://doi.org/10.1016/j.bir.2021.02.004
Salvi, A., Vitolla, F., Giakoumelou, A., Raimo, N., & Rubino, M. (2020). Technological Forecasting & Social Change Intellectual capital disclosure in integrated reports : The e ff ect on fi rm value. Technological Forecasting & Social Change, 160(July). https://doi.org/10.1016/j.techfore.2020.120228
Soetanto, T., & Liem, P. F. (2018). INTELLECTUAL CAPITAL IN INDONESIA : DYNAMIC PANEL. Journal of Asia Business Studies.
Soewarno, N., & Tjahjadi, B. (2020). Measures that matter : an empirical investigation of intellectual capital and financial performance of banking firms in Indonesia. Journal of Intellectual Capital, 2014. https://doi.org/10.1108/JIC-09-2019-0225
St-Pierre, J., & Audet, J. (2011). Intangible assets and performance: Analysis on manufacturing SMEs. Journal of Intellectual Capital, 12(2), 202–223. https://doi.org/10.1108/14691931111123395
Vazquez- Avila, G., Sanchez-Gutierrez, J., & Rodriguez-Camacho, R. (2012). Impact of Knowledge Management and Intellectual Capital on Competitiveness of SMEs Manufacturing in the Western Region of Mexico. Journal Knowledge and Economy, 10(1), 7.
Wang, W. K., Lu, W. M., & Wang, Y. H. (2013). The relationship between bank performance and intellectual capital in East Asia. Quality and Quantity, 47(2), 1041–1062. https://doi.org/10.1007/s11135-011-9582-2
Wang, Z., Cai, S., Liang, H., Wang, N., & Xiang, E. (2018). Intellectual capital and firm performance : the mediating role of innovation speed and quality. The International Journal of Human Resource Management, 0(0), 1–29. https://doi.org/10.1080/09585192.2018.1511611
Xu, J., & Li, J. (2019). The interrelationship between intellectual capital and firm performance: evidence from China’s manufacturing sector. Journal of Intellectual Capital. https://doi.org/10.1108/JIC-08-2019-0189
Zawaideh, F. H. S., Al-Zoubi, M. I., Abualoush, S. H., Kanaan, R. K., & Masa’deh, R. (2018). The Impact of Knowledge Documentation Process as an Intermediary Variable among Knowledge Acquisition Process, Organizational Culture and Human Capital. Modern Applied Science, 12(11), 151. https://doi.org/10.5539/mas.v12n11p151
Allameh, S. M. (2018). Antecedents and consequences of intellectual capital: The role of social capital, knowledge sharing and innovation. Journal of Intellectual Capital, 19(5), 858–874. https://doi.org/10.1108/JIC-05-2017-0068
Alrowwad, A., Abualoush, S. H., & Masa’deh, R. (2020). Innovation and intellectual capital as intermediary variables among transformational leadership , transactional leadership , and organizational performance. Journal of Management Developmen, 39(2), 196–222. https://doi.org/10.1108/JMD-02-2019-0062
Alvino, F., Vaio, A. Di, Hassan, R., & Palladino, R. (2021). Intellectual capital and sustainable development : a systematic literature review. Journal of Intellectual Capital, 22(1), 76–94. https://doi.org/10.1108/JIC-11-2019-0259
Asiaei, K., Barani, O., Bontis, N., & Arabahmadi, M. (2020). Unpacking the black box How intrapreneurship intervenes in the. Journal of Intellectual Capital, 1469–1930. https://doi.org/10.1108/JIC-06-2019-0147
Bayraktaroglu, A. E. (2019). Intellectual capital and firm performance : an extended VAIC model. Journal of Intellectual Capital, 20(3), 406–425. https://doi.org/10.1108/JIC-12-2017-0184
Bellucci, M., Marzi, G., & Ciampi, F. (2020). Journal of Intellectual Capital : a review of emerging themes and future trends trends. Journal of Intellectual Capital. https://doi.org/10.1108/JIC-10-2019-0239
Beretta, V., Demartini, C., Trucco, S., & Internazionali, S. (2019). Does environmental , social and governance performance influence intellectual capital disclosure tone in integrated reporting ? Journal of Intellectual Capital, 20(1), 100–124. https://doi.org/10.1108/JIC-02-2018-0049
Brusoni, S., Prencipe, A., & Pavitt, K. (2001). Knowledge specialization, organizational coupling, and the boundaries of the firm: Why do firms know more than they make? Administrative Science Quarterly, 46(4), 597–621. https://doi.org/10.2307/3094825
Chowdhury, L. A. M., Rana, T., & Azim, M. I. (2019). Intellectual capital efficiency and organisational performance In the context of the pharmaceutical industry in Bangladesh. Journal of Intellectual Capital, 20(6), 748–1930. https://doi.org/10.1108/JIC-10-2018-0171
Demartini, M. C., & Beretta, V. (2019). Intellectual capital and SMEs ’ performance : A structured literature review. Journal of Small Business Management, 00(00), 1–45. https://doi.org/10.1080/00472778.2019.1659680
F-Jardón, C. M., & Martos, M. S. (2009). Intellectual capital and performance in wood industries of Argentina. Journal of Intellectual Capital, 10(4), 600–616. https://doi.org/10.1108/14691930910996670
Ferreira, A., & Franco, M. (2017). The Mediating Effect of Intellectual Capital in The Relationship Between Strategic Alliances and Organizational Performance in Portuguese Technology-Based SMEs. European Management Review, 14(3), 303–318. https://doi.org/10.1111/emre.12107
Han, Y., & Li, D. (2015). Effects of intellectual capital on innovative performance: The role of knowledge-based dynamic capability. Management Decision, 53(1), 40–56.
Jardon, C. M., & Martos, M. S. (2012). Intellectual capital as competitive advantage in emerging clusters in Latin America. Journal of Intellectual Capital, 13(4), 462–481. https://doi.org/10.1108/14691931211276098
Kengatharan, N. (2019). A knowledge-based theory of the firm Nexus of intellectual capital , productivity. International Journal of Manpower. https://doi.org/10.1108/IJM-03-2018-0096
Kesse, G., & Pattanayak, J. K. (2019). Borsa _ Istanbul Review Does investing in intellectual capital improve productivity ? Panel evidence from commercial banks in India. Borsa Istanbul Review, 19(3), 219–227. https://doi.org/10.1016/j.bir.2019.03.001
Khalique, M., Bontis, N., Abdul Nassir bin Shaari, J., & Hassan Md. Isa, A. (2015). Intellectual Capital in Pakistani Small Medium Enterprises. Journal of Intellectual Capital, 16(1), 224–238.
Kianto, A., Sáenz, J., & Aramburu, N. (2017). Knowledge-based human resource management practices, intellectual capital and innovation. Journal of Business Research, 81(December 2016), 11–20. https://doi.org/10.1016/j.jbusres.2017.07.018
Mahmood, T., & Shujaat, M. (2020). Technological Forecasting & Social Change Balancing innovation and exploitation in the fourth industrial revolution : Role of intellectual capital and technology absorptive capacity. Technological Forecasting & Social Change, 160(August), 120248. https://doi.org/10.1016/j.techfore.2020.120248
Mubaraq, S., & Ahmed Haji, A. (2014). The impact of corporate governance attributes on intellectual capital disclosure: A longitudinal investigation of Nigerian banking sector. Journal of Banking Regulation, 15(2), 144–163. https://doi.org/10.1057/jbr.2013.15
Nadeem, M., & Massaro, M. (2018). If You Can Measure It , You Can Manage It : A Case of Intellectual Capital. Australian Accounting Review, 00(December), 1–13. https://doi.org/10.1111/auar.12227
Nirino, N., Ferraris, A., Miglietta, N., & Invernizzi, A. C. (2020). Intellectual capital : the missing link in the corporate social responsibility – financial performance relationship capital. Journal of Intellectual Capital, 1469–1930. https://doi.org/10.1108/JIC-02-2020-0038
Obeidat, A. M., Abualoush, S. H., Irtaimeh, H. J., Khaddam, A. A., & Bataineh, K. A. (2018). The role of organisational culture in enhancing the human capital applied study on the social security corporation. International Journal of Learning and Intellectual Capital, 15(3), 258–276. https://doi.org/10.1504/IJLIC.2018.094722
Ousama, A. A. (2020). The association between intellectual capital and fi nancial performance in the Islamic banking industry An analysis of the GCC banks. International Journal of Islamic and Middle Eastern Finance and Management, 13(1), 75–93. https://doi.org/10.1108/IMEFM-05-2016-0073
Pulic, A. (2004). Intellectual capital – does it create or destroy value? Measuring Business Excellence, 8(1), 62–68. https://doi.org/10.1108/13683040410524757
Rehman, A. U., Aslam, E., & Iqbal, A. (2022). Borsa _ Istanbul Review Intellectual capital efficiency and bank performance : Evidence from islamic banks. Borsa Istanbul Review, 22(1), 113–121. https://doi.org/10.1016/j.bir.2021.02.004
Salvi, A., Vitolla, F., Giakoumelou, A., Raimo, N., & Rubino, M. (2020). Technological Forecasting & Social Change Intellectual capital disclosure in integrated reports : The e ff ect on fi rm value. Technological Forecasting & Social Change, 160(July). https://doi.org/10.1016/j.techfore.2020.120228
Soetanto, T., & Liem, P. F. (2018). INTELLECTUAL CAPITAL IN INDONESIA : DYNAMIC PANEL. Journal of Asia Business Studies.
Soewarno, N., & Tjahjadi, B. (2020). Measures that matter : an empirical investigation of intellectual capital and financial performance of banking firms in Indonesia. Journal of Intellectual Capital, 2014. https://doi.org/10.1108/JIC-09-2019-0225
St-Pierre, J., & Audet, J. (2011). Intangible assets and performance: Analysis on manufacturing SMEs. Journal of Intellectual Capital, 12(2), 202–223. https://doi.org/10.1108/14691931111123395
Vazquez- Avila, G., Sanchez-Gutierrez, J., & Rodriguez-Camacho, R. (2012). Impact of Knowledge Management and Intellectual Capital on Competitiveness of SMEs Manufacturing in the Western Region of Mexico. Journal Knowledge and Economy, 10(1), 7.
Wang, W. K., Lu, W. M., & Wang, Y. H. (2013). The relationship between bank performance and intellectual capital in East Asia. Quality and Quantity, 47(2), 1041–1062. https://doi.org/10.1007/s11135-011-9582-2
Wang, Z., Cai, S., Liang, H., Wang, N., & Xiang, E. (2018). Intellectual capital and firm performance : the mediating role of innovation speed and quality. The International Journal of Human Resource Management, 0(0), 1–29. https://doi.org/10.1080/09585192.2018.1511611
Xu, J., & Li, J. (2019). The interrelationship between intellectual capital and firm performance: evidence from China’s manufacturing sector. Journal of Intellectual Capital. https://doi.org/10.1108/JIC-08-2019-0189
Zawaideh, F. H. S., Al-Zoubi, M. I., Abualoush, S. H., Kanaan, R. K., & Masa’deh, R. (2018). The Impact of Knowledge Documentation Process as an Intermediary Variable among Knowledge Acquisition Process, Organizational Culture and Human Capital. Modern Applied Science, 12(11), 151. https://doi.org/10.5539/mas.v12n11p151