Title: Modelling the creation of value from intellectual capital: a Portuguese banking perspective

Authors: Maria do Rosario Cabrita, Jorge Landeiro De Vaz, Nick Bontis

Addresses: Faculty of Science and Technology, Universidade Nova de Lisboa, Lisbon, Portugal. ' Institute of Economics and Business Administration, Universidade Tecnica de Lisboa, Lisbon, Portugal. ' Strategic Management, DeGroote School of Business, McMaster University, DSB #207, 1280 Main Street West, Hamilton, Ontario L8S 4M4, Canada

Abstract: Despite the widely recognised importance of intellectual capital as a vital source of competitive advantage, there is still little understanding of how organisations actually combine their components to drive value. The purpose of this study is to examine the interrelationships among intellectual capital components within the Portuguese banking context by extending a study completed by Bontis. Several paths are identified that drive towards superior performance. Various models are assessed using a Partial Least Squares (PLS) approach given its advantages in dealing with complex models and its predictive capability. Empirical findings from this study support the proposition that intellectual capital is a driver of organisational value, but only in certain combinations.

Keywords: intellectual capital; human capital; structural capital; relational capital; organisational value; partial least squares; PLS; Portugal; banking; value creation; modelling.

DOI: 10.1504/IJKL.2007.015555

International Journal of Knowledge and Learning, 2007 Vol.3 No.2/3, pp.266 - 280

Published online: 29 Oct 2007 *

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