Title: Relationship between intellectual capital and firm performance - evidence from India

Authors: Nandita Mishra; Adel M. Sarea

Addresses: Department of Management and Engineering, Linkoping University, Sweden ' University Council, Ahlia University, Kingdom of Bahrain

Abstract: The purpose of this study is to examine the effect of intellectual capital on its component of firm's financial performance and market valuation. It also draws a comparison between service and manufacturing sector. The study applies panel data analysis for examining the effect of IC on financial performance and a primary survey is conducted to understand the impact of components of IC namely, human capital, structural capital and relational capital on firms' organisational performance. Understanding the components of IC as the vital drivers of organisational effectiveness helps a company to derive the full value from them. The importance of various aspects of IC can be extracted from this research will provide opportunity for strategic approaches and reveals the correct path for efficient and suitable management of resource. This study offers a critical review of the impact of IC on firm's performance and the components which will have more impact on organisational performance.

Keywords: intellectual capital; intellectual capital disclosure; organisational performance; firm's performance; India.

DOI: 10.1504/IJCA.2021.120528

International Journal of Critical Accounting, 2021 Vol.12 No.5, pp.403 - 428

Received: 27 Oct 2020
Accepted: 05 Jul 2021
Published online: 24 Jan 2022 *

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