Title: Performance of intellectual capital in Indian healthcare sector

Authors: Sriranga Vishnu; Vijay Kumar Gupta

Addresses: Indian Institute of Management Indore, Rau-Pithampur Road, Indore, M.P., 453556, India ' Indian Institute of Management Indore, Rau-Pithampur Road, Indore, M.P., 453556, India

Abstract: Measurement of intellectual capital efficiency and its impact on the financial performance of companies is a commonly researched domain. A significant section of researchers have used the Value Added Intellectual Coefficient (VAIC™) model - an accounting data-based measurement model, for this purpose. However, the contemporary literature criticises this model for non-inclusion of relational capital and perfect interdependency between intellectual capital components. This study addresses these shortcomings by presenting an extended and modified version of the VAIC™ model. Relational capital has been added as a new variable. This new model has been tested on the healthcare firms of India. A comparative analysis of the two models has also been done. Regression results do not encourage the inclusion of relational capital in VAIC™. During comparative study, the coefficient of determination values suggest that the proposed model may be preferred over VAIC™ for all the three performance variables - return on assets, return on equity and return on sales. These findings have academic as well as practical implications.

Keywords: healthcare sector; India; intellectual capital; efficiency measurement; financial performance; regression; relational capital; return on assets; ROA; return on equity; ROE; return on sales; ROS; value added intellectual coefficient model; VAIC; modelling.

DOI: 10.1504/IJLIC.2015.067831

International Journal of Learning and Intellectual Capital, 2015 Vol.12 No.1, pp.47 - 60

Received: 19 Feb 2014
Accepted: 16 Oct 2014
Published online: 18 Mar 2015 *

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