Title: Do the extended value-added intellectual capital components impact the profitability of Indian agribusiness companies?

Authors: Vaishnavi Balaji; Rajesh Mamilla

Addresses: VIT Business School, Vellore Institute of Technology (Deemed to be University), Vellore, Tamilnadu-632014, India ' VIT Business School, Vellore Institute of Technology (Deemed to be University), Vellore, Tamilnadu-632014, India

Abstract: This research examines how intellectual capital components influence the financial viability of Indian agribusinesses. This is one of the most recent studies that examine the profitability and intellectual capital of Indian agricultural companies. The proposed extended value-added intellectual capital model measures intellectual capital. Data were gathered from 20 agricultural businesses listed in the NIFTY 500 index between 2011 and 2022 using Prowessiq (CMIE) and the annual reports. The fixed effects regression model is deployed in this research. The research outcomes specify that the most crucial variables with a substantial favourable influence on the profitability of Indian agribusinesses are innovation capital efficiency and human capital efficiency. The other variables, relational capital efficiency, capital employed efficiency and structural capital efficiency, also significantly impact financial performance. Companies should value and invest in their intellectual capital components to enhance financial performance.

Keywords: capital employed efficiency; Indian agribusiness; innovation capital efficiency; human capital efficiency; profitability; relational capital efficiency; structural capital efficiency.

DOI: 10.1504/IJPMB.2024.141535

International Journal of Process Management and Benchmarking, 2024 Vol.18 No.2, pp.141 - 155

Received: 31 May 2023
Accepted: 12 Jun 2023
Published online: 23 Sep 2024 *

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