Title: Competition, intellectual capital efficiency and firms' performance outcome in India: a structural equation modelling

Authors: Trilochan Tripathy; Debadutta Sahoo; Ankit Kesharwani; Ajay Kumar Mishra

Addresses: IBS Business School, The IFHE University, Dontanapalli, Shankarpally Road, Hyderabad – 501203, India ' TCS Energy and Resources, Tata Consultancy Services, Services Tour Franklin (19th floor) – La Défense 8, 100–101 Quartier Boieldieu, 92800 Puteaux, France ' IBS Business School, The IFHE University, Dontanapalli, Shankarpally Road, Hyderabad – 501203, India ' IBS Business School, The IFHE University, Dontanapalli, Shankarpally Road, Hyderabad – 501203, India

Abstract: This study examines the effect of competition and intellectual capital efficiency on firms' performance outcome in an emerging market context. The authors conceptualise a new theoretical model to examine the direct effect of competition on intellectual capital efficiency and firms' performance outcomes and indirect effect of competition through intellectual capital efficiency on firms' performance outcomes in the Indian market. It concludes that competition positively impacts intellectual capital efficiency and firms' market to book value and negatively impacts the firms' return on asset and competitive advantage. However, competition does not have any significant indirect effect on firms' financial performance outcomes via intellectual capital coefficient measures. The results extend the understanding of the direct and indirect effect of competition on intellectual capital efficiency and financial performance outcomes for companies in one of the fastest growing emerging economies.

Keywords: intellectual capital efficiency; firm performance; financial performance; competitive advantage; physical capital; structural capital; human capital; innovative capital; relational capital; India; structural equation modelling; SEM; emerging markets; competition; market to book value; return on assets; ROA.

DOI: 10.1504/IJLIC.2016.074350

International Journal of Learning and Intellectual Capital, 2016 Vol.13 No.1, pp.72 - 95

Received: 04 Apr 2015
Accepted: 06 Oct 2015

Published online: 23 Jan 2016 *

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