Intellectual Capital Measurement and Company Performance, Any Real Impact?

##plugins.themes.academic_pro.article.main##

Noel Singgih Haryo Pradono
Eka Bertuah
Sapto Jumono
Agus Munandar

Abstract

This study aims to determine the effect of Intellectual Capital measured by VAIC on company performance measured with ROA, ROE and MBV. As many as 19 non-financial companies with 183 observations for the period of 2010-2020 (unbalanced panel) was used for panel data regression model. fixed effect model with robust is the most suitable model for ROA and ROE panel data regression. For MBV random effect model is considered appropriate in this research. According to the results only human capital is the most significant component for ROA and ROE. For MBV, none of the components have significant impact on share performance. Regression result showed that MBV is not suitable to measure company share performance.

##plugins.themes.academic_pro.article.details##

How to Cite
Pradono, N. S. H., Eka Bertuah, Sapto Jumono, & Agus Munandar. (2022). Intellectual Capital Measurement and Company Performance, Any Real Impact?. Enrichment : Journal of Management, 12(5), 3426-3432. https://doi.org/10.35335/enrichment.v12i5.886

References

Ahman, L., & Sohn, S. H. (2020). Impact of Intellectual Capital on Firm Performance and Market to Book Value An analysis of the extended VAIC TM model on Swedish listed firms within the healthcare sector. 1–47.
Andreeva, T., & Garanina, T. (2016). Do all elements of intellectual capital matter for organizational performance? Evidence from Russian context. Journal of Intellectual Capital, 17(2), 397–412. https://doi.org/10.1108/JIC-07-2015-0062
Bayraktaroglu, A. E., Calisir, F., & Baskak, M. (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
Bontis, N., Janošević, S., & Dženopoljac, V. (2015). Intellectual capital in serbia’s hotel industry. International Journal of Contemporary Hospitality Management, 27(6), 1365–1384. https://doi.org/10.1108/IJCHM-12-2013-0541
Bostanci, F., Kadioglu, E., & Sayilgan, G. (2018). Determinants of Dividend Payout Decisions: A Dynamic Panel Data Analysis of Turkish Stock Market. International Journal of Financial Studies, 6(4), 93. https://doi.org/10.3390/ijfs6040093
Cabrita, M. R., Cruz-Machado, V., & Duarte, S. (2019). Enhancing the Benefits of Industry 4.0 from Intellectual Capital: A Theoretical Approach. 1581–1591. https://doi.org/10.1007/978-3-319-93351-1_124
Chang, W. S., & Hsieh, J. J. (2011). Intellectual Capital and Value Creation-Is Innovation Capital a Missing Link? International Journal of Business and Management, 6(2). https://doi.org/10.5539/ijbm.v6n2p3
Chowdhury, L. A. M., Rana, T., & Azim, M. I. (2019). Intellectual capital efficiency and organisational performance. Journal of Intellectual Capital, 20(6), 784–806. https://doi.org/10.1108/jic-10-2018-0171
El-Bannany, M. (2008). A study of determinants of intellectual capital performance in banks: The UK case. Journal of Intellectual Capital, 9(3), 487–498. https://doi.org/10.1108/14691930810892045
Elrehail, H., Harazneh, I., Abuhjeeleh, M., Alzghoul, A., Alnajdawi, S., & Ibrahim, H. M. H. (2020). Employee satisfaction, human resource management practices and competitive advantage: The case of Northern Cyprus. European Journal of Management and Business Economics, 29(2), 125–149. https://doi.org/10.1108/EJMBE-01-2019-0001
Frank, A. G., Dalenogare, L. S., & Ayala, N. F. (2019). Industry 4.0 technologies: Implementation patterns in manufacturing companies. International Journal of Production Economics, 210, 15–26. https://doi.org/10.1016/j.ijpe.2019.01.004
Hun, M. P. (2011a). Practical Guides To Panel Data Modeling : A Step by Step Analysis Using Stata. Public Management and Public Analysis Program, 1–53.
Hun, M. P. (2011b). Practical Guides To Panel Data Modeling : A Step by Step Analysis Using Stata. Public Management and Public Analysis Program, 1–53.
Inkinen, H. (2015). Review of empirical research on intellectual capital and firm performance. Journal of Intellectual Capital, 16(3), 518–565. https://doi.org/10.1108/JIC-01-2015-0002
Khalique, M., Hina, K., Ramayah, T., & Shaari, J. A. N. bin. (2020). Intellectual capital in tourism SMEs in Azad Jammu and Kashmir, Pakistan. Journal of Intellectual Capital, 21(3), 333–355. https://doi.org/10.1108/JIC-11-2018-0206
Kohtamäki, M., Parida, V., Oghazi, P., Gebauer, H., & Baines, T. (2019). Digital servitization business models in ecosystems: A theory of the firm. Journal of Business Research, 104, 380–392. https://doi.org/10.1016/j.jbusres.2019.06.027
M. Pedrini. (2007). Human capital convergences in intellectual capital and sustainability reports. Journal of Intellectual Capital, 8(2), 346–366.
Maditinos, D., Chatzoudes, D., Tsairidis, C., & Theriou, G. (2011). The impact of intellectual capital on firms’ market value and financial performance. Journal of Intellectual Capital, 12(1), 132–151. https://doi.org/10.1108/14691931111097944
Mariz-Perez, R. M., Teijeiro-Alvarez, M. M., & Garcìa-Alvarez, M. T. (2012). The relevance of human capital as a driver for innovation. Cuadernos de Economia (Spain), 35(98), 68–76. https://doi.org/10.1016/S0210-0266(12)70024-9
Maulana, T. I., & Muchtar, P. P. S. A. (2018). Modul Metode Penelitian Akuntansi STAN. 1–53.
Molodchik, M., Shakina, E., & Bykova, A. (2012). Intellectual capital transformation evaluating model. Journal of Intellectual Capital, 13(4), 444–461. https://doi.org/10.1108/14691931211276089
Nimtrakoon, S. (2015). The relationship between intellectual capital, firms’ market value and financial performance: Empirical evidence from the ASEAN. Journal of Intellectual Capital, 16(3), 587–618. https://doi.org/10.1108/JIC-09-2014-0104
Ousama, A. A., & Fatima, A. H. (2015). Intellectual capital and financial performance of Islamic banks. International Journal of Learning and Intellectual Capital, 12(1), 1–15. https://doi.org/10.1504/IJLIC.2015.067822
Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: A study of the Turkish Banking Sector. Borsa Istanbul Review, 17(3), 190–198. https://doi.org/10.1016/j.bir.2016.03.001
Phusavat, K., Comepa, N., Sitko-Lutek, A., & Ooi, K. B. (2011). Interrelationships between intellectual capital and performance: Empirical examination. Industrial Management & Data Systems, 111(6), 810–829. https://doi.org/10.1108/02635571111144928
Pucar, S. (2012). The influence of intellectual capital on export performance. Journal of Intellectual Capital, 13(2), 248–261. https://doi.org/10.1108/14691931211225715
Pulic, A. (2004). Intellectual capital – does it create or destroy value? Measuring Business Excellence, 8(1), 62–68. https://doi.org/10.1108/13683040410524757
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, 21(6), 1085–1106. https://doi.org/10.1108/JIC-09-2019-0225
Tiwari, R. (2020). Nexus between intellectual capital and profitability with interaction effects: panel data evidence from the Indian healthcare industry. Journal of Intellectual Capital. https://doi.org/10.1108/JIC-05-2020-0137
Ulum, I., Ghozali, I., & Purwanto, A. (2014). Intellectual Capital Performance of Indonesian Banking Sector: A Modified VAIC (M-VAIC) Perspective. Asian Journal of Finance & Accounting, 6(2), 103. https://doi.org/10.5296/ajfa.v6i2.5246
Vishnu, S., & Gupta, V. K. (2014). Intellectual capital and performance of pharmaceutical firms in India. Journal of Intellectual Capital, 15(1), 83–99. https://doi.org/10.1108/JIC-04-2013-0049
Xu, J., & Li, J. (2020). 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
Zulfikar, R. (2018). Estimation Model And Selection Method Of Panel Data Regression : An Overview Of Common Effect, Fixed Effect, And Random Effect Model. https://doi.org/10.31227/osf.io/9qe2b