International Journal of Learning and Intellectual Capital (21 papers in press)
Intellectual capital in SMEs: a review and research agenda
by Maria Chiara Demartini, Valentina Beretta
Abstract: Given the increasing relevance of IC for SMEs and the need for more research in the field, this study adopts a structured literature review to analyse extant research related to IC in SMEs. Results of this study contribute in advancing a proposed future research agenda. Three main areas have been outlined: non-traditional areas of investigation could be analysed, more attention could be devoted to this topic from journals in the small business area and, finally, the analysis of the specific effect that IC could have on SMEs performance could be deepened.
Keywords: intellectual capital; small and medium-sized enterprises; SMEs; literature review; research agenda.
Intellectual capital efficiency and financial performance in the hotel sector
by José António Fernandes Lopes Oliveira Vale, Vera Cristina Fontes Teixeira Vale, Vânia Sofia Castro Lopes
Abstract: In the current knowledge age, intellectual capital (IC) is crucial to create competitive advantages for organisations, something which has been leading to studies about its impact on the financial performance of organisations of different sectors of activity. However, when regarding the hotel sector, this topic is underexplored. This paper aims to understand the relationship between Intellectual Capitals efficiency and the financial performance of micro, medium, and small-sized Portuguese companies pertaining to the hotel sector. The results suggest a positive and significant relationship between VAIC and hotels financial performance. More
specifically, human capital efficiency and capital employed efficiency are the
most important and statistically significant dimensions which impact such performance, regardless of the companies size. This study is not without its limitations. The used methodology (VAIC) does not take into account the traditional taxonomy of IC, i.e., human capital (HC), structural capital (SC) and relational capital (RC).
Keywords: ntellectual capital; financial performance; value added intellectual coefficient; VAIC; hospitality; hotel; micro-entities; SME; linear regression.
From a value-based knowledge economy to a worth economy. New reflections and perspectives on intellectual capital research
by Leif Edvinsson, Francesca Dal Mas, Patricia Ordóñez De Pablos, Maurizio Massaro, John Dumay
Abstract: In this paper we review the main evolution of intellectual capital (IC) research after 20 years from the first article published by Leif Edvinsson on the topic. In developing the paper, we highlight the main concerns that were stimulating the debate at the time. The paper employs a conceptual review starting from the questions raised in one of the first papers about IC. While 20 years ago, the debate was about the starting of the knowledge economy, the search for increasing economic value and IC research was at the beginning. Today we face a different situation. The knowledge economy represents a consolidated concept, and a new paradigm is emerging based on an economy in which sustainability and worth represent the core values. Organisations are employing new business models to create value that also embraces a
sustainable perspective. New research streams on IC are emerging.
Keywords: intellectual capital research; intellectual capital evolution;
intangible assets; knowledge economy; sustainability; economic value; market to book value; sustainability; business models; competitive advantage.
The relationship between emotional quotient, spiritual quotient affecting managerial efficiency of employees in organisations
by Tilottama Singh, Rajesh Kumar Upadhyay, Amar Kumar Mishra, Harpreet Singh Grewal
Abstract: The main purpose of the paper is to understand the relation between emotional quotient and spiritual quotient. Also, the paper examines how emotional spiritual quotient together called as ESQ affects the working efficiency of professional. The sample used in the study comprised of 718 employees working in banking sector. Further exploratory and confirmatory factor analysis was applied in studying the hypothesised conceptual model. The outcome of the study shows significant association between the study variables. EQ, SQ, together ESQ was closely studied and its impact on working efficiency of the service sector employees. Second, very rare studies have examined EQ and SQ together as ESQ which have mutual interdependence. The study examines the interrelation between emotional and spiritual quotient by studying them together, thereby making a mark on previous researches and its relationship with managerial efficiency.
Keywords: banks; effectiveness; employees; emotional spiritual quotient; ESQ.
Intellectual capital efficiency and firm performance: evidence from an emerging knowledge-economy
by Swadip Bhattacharjee, Refa Akter
Abstract: The current study, based on the listed companies of Bangladesh, aims to frame the affinity between intellectual capital (IC) efficiency and different dimensions of business performance-financial, market, and economic. This study measured IC efficiency by adopting value-added intellectual coefficient (VAIC) approach which estimates companies value addition capability considering physical capital, human capital, and structural capital. Using the lens of the resource-based view (RBV), the underlying study observes a positive connection of VAIC with companies financial and economic performance, whereas it is non-significant with market valuation. The study also reveals that among VAIC components, efficiency of physical capital is the most influential element for predicting business performance. Finally, the present research recommends that concentrating on intellectual resources as a substitute for tangible resources can uplift companies overall performance.
Keywords: knowledge economy; business performance; IC; VAIC; Bangladesh.
Organisational commitment in higher educational institutions: role of leadership and job characteristics
by Amar Kumar Mishra, Anjali Rai, Girish Lakhera, Rajesh Kumar Upadhyay
Abstract: The need for institutions of higher education (HEI) has increased manifold in recent times in developing nations like India. The need, demand, and importance saw a mushrooming of HEIs in India in the first decade of this century. However, the survival of many of such institutions is at stake owing to lack of a committed workforce. The situation is graver in the hill states of India where the climate is ardent, infrastructure is poor and opportunities for growth and development are less. Many employees in these places leave their organisations in search of greener pasture in cozy developed metropolitan cities of plains. There is a dearth of employees having voluntary commitment in such places. HEIs in Uttrakhand (a hilly state in the North India) too are coping with the same menace. There is a dearth of committed employees. Commitment however cannot be developed overnight and requires transformational leadership and motivational job characteristics. In this study, role of transformational leadership (TL) and job characteristics (JC) in fostering organisational commitment (OC) in Higher Educational Institutions of Uttarakhand, India has been examined.
Keywords: transformational leadership; organisational commitment; job characteristics; higher educational institutions.
The association between human capital efficiency and credit risk of Indian banks: a change point analysis
by Santi Gopal Maji, Mitra Goswami
Abstract: The aim of this paper is to identify the structural break in the distribution of credit risk in Indian banking sector and highlight the importance of human capital in managing credit risk during pre and post change period after controlling the influence of bank specific and macroeconomic factors. The study is based on secondary data of listed Indian commercial banks over a period of 15 years from 19992000 to 20132014. Change point analysis is used to identify structural break in the credit risk. Human capital efficiency (HCE) is measured by employing VAICTM model. The Panel data regression results for pre change period reveal no significant association between HCE and credit risk. However, in post change period, a negative impact of HCE on credit risk is observed. This paper is helpful for policy implications as the results demonstrate that banks can reduce credit risk by enhancing the efficiency of human resources.
Keywords: credit risk; human capital efficiency; HCE; change point analysis; Indian banks.
The influence of intellectual capital on the Indian firms financial performance
by Faizi Weqar, S.M. Imamul Haque
Abstract: This paper aimed to examine the effect of intellectual capital (IC) and its dimensions on the financial performance of Indian firms. The data of 88 Indian firms engaged in tea packaging, selling, and distribution for the six years from 2013 to 2018 were extracted. Value added intellectual coefficient (VAICTM) methodology forms the basis for quantifying the firms IC performance. By applying the fixed-effect regression analysis, the result shows that IC significantly enhances the profitability and productivity of the Indian tea industry. Likewise, among the three components of VAIC, capital employed efficiency (CEE) plays the most vital role in improving the financial performance of the Indian tea industry, followed by structural capital efficiency (SCE). Human capital efficiency (HCE), the third component of IC efficiency, shows a significant positive influence on profitability and a substantial negative impact on the firms productivity.
Keywords: intellectual capital; profitability; productivity; financial performance; VAIC; Indian tea industry.
Ownership structure and intellectual capital: empirical evidence for Jordanian listed firms
by Ghassan H. Mardini, Amneh Alkurdi, Mahmoud M. Karasneh
Abstract: The main objective of the current study is to examine the impact of ownership structure on intellectual capital (IC) disclosures from a stakeholder theory perspective. The current study employs a disclosure index approach to examine the extent of structural and relational capital disclosures of Jordanian listed firms with data from 2012 to 2018. Ordinary least squares regression models for structural capital, relational capital, and overall IC disclosures are employed. The findings show a negative significant impact of management ownership on relational capital disclosures, a positive impact of foreign ownership on relational and overall IC disclosures, and a positive impact of institutional ownership on all three IC models. Hence, our study suggests that managers are not inclined to provide relational capital disclosures for the benefit of stakeholders. Moreover, it suggests that foreign investors require lower information asymmetry, which leads to measures being taken to enhance IC practices. We believe that our study adds knowledge to the current IC literature since it provides empirical evidence concerning knowledge-based IC disclosures in emerging markets such as Jordan.
Keywords: intellectual capital; ownership structure; Jordan; developing countries; emerging markets.
Talent development towards an inclusive equitable society: a dearth of knowledge
by Maniam Kaliannan, Darshana Darmalinggam, Magiswary Dorasamy, Patricia Ordóñez De Pablos
Abstract: Most organisations adopt exclusive talent management practices. Only the selected few key employees are recognised as talent and given development opportunities with special reward packages to motivate and retain them within the organisation. This has left other employees especially those from lower-level management positions without talent development plans. In Malaysia, this group is known as B40 and most of them are young youth employees employed primarily in SMEs. The B40 group of employees are those with low household income and lack talent development opportunities. Relevant stakeholders should manage this B40 group to ensure provision to proper talent and career development plans. However, this can be challenging given the limited knowledge on inclusive talent development. Thus, this paper seeks to address the dearth of knowledge on inclusive talent development, a key talent management tool within the context of Malaysias B40 group towards attaining an inclusive equitable society.
Keywords: talent development; inclusiveness; equitable society; dearth of knowledge; talent management.
Effect of intellectual capital on the business performance of SMEs in Malaysia
by Muhammad Khalique, Mohd Rafi Bin Yaacob, Muhammad Khalilur Rahman, Adams Adeiza
Abstract: The research intended to investigate the effect of intellectual capital on the business performance of SMEs functioning in Penang Malaysia. The data were gathered through structured questionnaire survey forms. Participants for this study were selected through purposive sampling technique. In this study, 154 individuals were involved to test the six proposed research hypotheses. Multiple regression was used to examine the proposed research prepositions. The empirical findings expressed that four research hypotheses were supported and two hypotheses were not supported. The findings of this study reported that IC is very important for the success of SMEs. This study will provides awareness to SMEs to identify and capitalise their intellectual capital to get competitive advantages. This study will also provide guidelines to the policy makers. This study offers new avenues for future investigators to conduct their studies in various sectors to examine the impact of intellectual capital on performance of SMEs.
Keywords: intellectual capital; hotel industry; digital economy; business performance; small and medium enterprises; SMEs; Malaysia.
Transformational leadership and employee retention: a moderated mediation model of intrinsic motivation and perceived organisational support
by Chhavi Krishna, Rajesh Kumar Upadhyay, Khaliq Rehman Ansari, Veeralakshmi Babu
Abstract: Employment efficiency can only be maximised if administrators of an organisation are willing to utilise productive human resources to transform their human capital. Perceived organisational support (POS) relates to the mutual beliefs of staff of an enterprise as to how the business values their interests and expectations for health. As workers are open to different challenges and possibilities, they continue to work meaningfully and benefit from their careers. Transformational leaderships impact on Employee retention in education institutions in Uttarakhand, India, is investigated through the mediation effects of staff morale and the moderating influence of perceived organisational support in the current investigation. The research has several significant consequences. Firstly, the correlation between Employee retention and Transformational leadership, Transformational leadership and perceived organisational support is statistically relevant. Secondly, it is found that if successfully applied, Transformational leadership may contribute to improved retention of workers and promote the retention of the institutions best assets.
Keywords: employee retention; ER; transformational leadership; TL; employee motivation; EM; perceived organisational support; POS; human resource management.
Intellectual resource and new product performance: mediating role of innovation capability
by Nazila Yousefi, Razieh Ahmady, Gholamhossein Mehralian
Abstract: Intellectual resource is recognised as a key success factor in an increasingly competitive, knowledge-based economy. The literature contains several studies that investigated the effects of intellectual resources on new product performance. However, the mediating role of innovation capability in the relationship between intellectual resources and new product performance are understudied. The purpose of this research is to demonstrate how innovation capability influence the relationship between intellectual resources and new product performance within the context of pharmaceutical sector. Data was collected through structured questionnaires from a sample of Iranian pharmaceutical firms. Structural equation modelling was used to test the proposed research hypotheses. The findings of this study shows that intellectual resources have a significant positive impact on new product performance. Furthermore, the results reveal that innovation capability indirectly mediates the effect of intellectual resources on new product performance in the pharmaceutical industry.
Keywords: intellectual resources; innovation capability; new product performance; NPP; pharmaceutical industry; structural equation modelling; SEM.
Intellectual capital disclosure: study on university website
by Ihyaul Ulum, Kirana Ika Putri, Dhaniel Syam, Nazaruddin Malik, Eny Suprapti
Abstract: This research has two objectives: firstly, to identify the practice of college intellectual capital (IC) disclosure through their web site with a content
analysis method called 'six ways numerical coding system'. The second objective is to examine the effect of age, size and accreditation status on the extent of IC disclosure. Warp PLS 6.0 was used to analyse the data from vocational colleges in Indonesia. The results indicate that IC disclosure through university websites is still below 50% on average. Disclosure in image format is more widely used than other formats. PLS test results show that the size and accreditation status variables have an impact on the extent of IC disclosure, while the age variable has no effect.
Keywords: Indonesia; intellectual capital disclosure; vocational university; website.
Intellectual capital, profitability and market value of financial and non-financial services firms listed in Ghana
by Philip Elikplim Agomor, Joseph Mensah Onumah, King Carl Tornam Duho
Abstract: This study examines the impact of intellectual capital (IC) on profitability and market value using a dataset of 20 listed firms in Ghana covering the period 2008 to 2017. The value added intellectual coefficient (VAIC tm) measures IC performance (with human capital efficiency, structural capital efficiency and capital employed efficiency as components) while return on asset and return on equity measure profitability and Tobins Q measures market value. The findings show that among financial services firms, VAIC tm and its components enhance profitability but does not significantly affect market value. However, among non-financial services firms, VAIC tm enhances only return on asset and only capital employed efficiency enhances market value. The study also explores the effect of control variables such as size, age, foreign ownership and government ownership. This study is unique in exploring the difference between the IC and performance nexus among financial and non-financial services firms in an emerging market context.
Keywords: intellectual capital; illiquid stock markets; market value; profitability; IAS 38; value added intellectual coefficient; VAIC; developing economies; Ghana.
Drivers of voluntary intellectual capital disclosure in agriculture company listed in IMT-GT countries
by Josua Tarigan, Vania Devi, Saarce Elsye Hatane
Abstract: This study intends to examine the drivers of disclosing intellectual capital for a sample of agriculture firms listed in Indonesia, Malaysia, Thailand Growth Triangle (IMT-GT) countries. The authors read the annual reports by analysing the content and use quantitative data from the Bloomberg terminal. Ordinary least square (OLS) analysis is conducted to test the hypothesis and identify the correlation between variables. It is revealed that factors affect intellectual capital disclosure, such as firm size, ownership concentration, and auditor type. The findings help regulators understand better and use the factors that explain the companys intellectual capital disclosure in the development of future recommendations. Moreover, it is the first study to explore the IMT-GT relationship for intellectual capital disclosure topics. The cooperation has provided positive signals to the economic growth, thus made it enjoyable to look further at the businesses operating in those countries.
Keywords: firm size; auditor type; ownership concentration; intellectual capital disclosure; ICD; agriculture firms; IMT-GT.
Students' learning outcomes and satisfaction. An investigation of knowledge transfer during social distancing policies
by Domitilla Magni, Andrea Sestino
Abstract: During the COVID-19 pandemic, the researchers discovered that a billion students accessed digital channels, thus confirming the centrality of digital technologies in education. Considering that student satisfaction refers to a short-term attitude resulting from an evaluation of the educational experiences lived and that the perceived quality of an educational background is a consequence of student satisfaction, this paper investigates the role of e-learning practices in a knowledge transfer's environment, such as the university. Mainly, through an exploratory analysis, the paper gives some specific insights, investigating students' satisfaction in terms of interaction between students, technology, and original contents. The results show how digital technologies are transforming the education experience by shedding light on e-learning outcomes and students' satisfaction. The principal managerial implications of the paper focus on the beginning to understand the need to acquire digital infrastructures in universities, reducing the technological gaps, and considering the implementation of online learning solutions.
Keywords: knowledge transfer; students' satisfaction; digital environment; digital transformation; e-learning; digital technology; learning environment.
Intellectual capital performance model and comprehensive financial performance: evidence from firms listed in the Jakarta Islamic Index
by Ihyaul Ulum, Gatot Soepriyanto
Abstract: The objective of this study is to provide empirical evidence of the impact of intellectual capital performance (ICP) on companies' financial performance. The study employs three measures of ICP (VAIC, MVAIC, and IC-Index) and six different proxies for financial performance. Using Indonesian public companies which are listed in the Jakarta Islamic Index (JII) for the period of December 2017-May 2018, we found that when tested separately, VAIC and MVAIC both have positive effects on financial performance, while IC-Index does not influence the firms' financial outcome. By incorporating those three ICP measures in one model, we discovered similar results, where VAIC and MVAIC have a positive influence on the financial outcome, but not IC-Index. We contributed to the discussion that VAIC and MVAIC are important measures of intellectual capital performance, especially in the context of firms operating with Islamic measures in Indonesia.
Keywords: intellectual capital; intellectual capital performance; ICP; IC-Index; MVAIC; VAIC; Jakarta Islamic Index; JII.
Corporate governance and intellectual capital disclosure
by G. Bharathi Kamath
Abstract: Corporate governance (CG) characteristics of firms do have influence on the financial and intangible performance of firms. Recent research studies find significant impact of CG on voluntary disclosures in annual reports of the firms. Intellectual capital disclosures are voluntary disclosures that have gained significant attention in recent years. This paper tries to analyse the nature and extent of intellectual capital disclosure of four groups of firms from the manufacturing and the service sector in India for the financial year 2017-2018. Further, it explores CG characteristics of the firms and its influence on extent of IC disclosures. The results of the paper indicate that there is a significant difference in the level of disclosures in the service and the manufacturing sector. The nature of disclosures is varied among four sub-groups. Human capital disclosures are highest in the manufacturing sector, whereas customer capital disclosures are more in the service sector. Board size, its independence, has a significant positive impact on the extent of overall IC disclosures. The age of the firm and its size has a very strong impact on the level of IC disclosures in almost all industries. The financial performance measured by return on assets of the firms also show association in some cases.
Keywords: corporate governance; intellectual capital disclosure; IDC; board independence; board size; India.
Measuring the human capital strategic readiness based on organisational capabilities
by Mohammad Abooyee Ardakan, Naghmeh Ebadi
Abstract: The human resource can create value for the organisation by having high performance, when individuals have competencies aligned with the organisation's strategy. Since organisational capabilities translate strategies into actions and they are a common terminology of strategies and organisational components, the goal of the present research is to measure the HR strategic readiness regarding organisational capabilities. The proposed mechanism has been reviewed by a case study research method. The study findings indicate that product development, market development, product promotion and stabilisation of quality are the strategies emphasised by the organisation. Among six strategic job families identified, the strategic readiness of one group was weak, one group was moderate and other job families had acceptable strategic readiness.
Keywords: organisational capabilities; HR strategic readiness; competency profile.
Patterns of inequality in higher education: the case of students' field choice
by Fekadu Mulugeta Asfaw
Abstract: In an expanding higher education system that focuses on access, understanding the dynamics of inequality in the effort to provide educational opportunity to the majority is central. The main objective of this study is to investigate the pattern of field choice and the factors that influence students' field choice in two purposefully selected colleges. A total of 125 first-year students, 45 from the law school in the College of Law and Governance and 80 from language departments (one foreign and one local language department) in College of Humanities, Language Studies, Journalism and Communication (CHLSJC) participated in the study. The result indicated that students in the law school have better socio-economic status and achievement than the students in the language departments. Similarly, students in the law school seem to consider practical factors while students in the CHLSJC consider interpersonal factors as most influential in their field choice. The existing differences in the students' background and the factors they considered in their field choice process are found to be a continuation of prior inequalities and that they further perpetuate inequality in the higher education system in Ethiopia.
Keywords: higher education; field choice; inequality.