International Journal of Learning and Intellectual Capital (16 papers in press)
CSR, intellectual capital and corporate value for Indonesian SOEs
by Mutamimah Mutammah, Rima Yulia Sueztianingrum
Abstract: Companies implement CSR to increase corporate value. However, corporate value for Indonesian SOEs that implement CSR fluctuated and the results of previous research between CSR on corporate value show inconsistent results. Intellectual capital is expected can strengthen CSR to increase corporate value. This study aims to analyse intellectual capital in moderating CSR on corporate value in Indonesian SOEs. The population in this study used 115 Indonesian SOEs. The sampling method used purposive sampling and the type of data is panel data. Statistical analysis used descriptive analysis and multiple regression analysis. The results showed that CSR_ECO, CSR_ENV and CSR_SOC were no effect on corporate value. Intellectual capital is not able to moderate the effect of CSR_ECO on corporate value. Intellectual capital is only able to strengthen the influence of CSR_ENV on corporate value, but intellectual capital weakens the effect of CSR_SOC on corporate value.
Keywords: Indonesian SOEs; CSR; intellectual capital; corporate value.
Validating the effect of talent management on organisational outcomes with mediating role of job empowerment in business
by Avinash Pawar, Bambang Tri Cahyono, Koes Indrati, Endang Siswati, Henry Loupias
Abstract: Over the past decade, talent has become a more important resource than investments, capital, research or strategy in business. It is also a great basis for competitive advantage in the market. Hence, most companies are now concentrating on designing and developing talent management strategies in their businesses. The four essential elements of the talent management process are identifying significant positions, competency-based training, critical talent development, reward and recognition. The whole process of talent management affects organisational outcomes. The major objective of this research study is to understand the linkages and influence of talent management with organisational outcomes. The study was conducted with a survey of 324 respondents from service, manufacturing and information technology companies in Indonesia and India. The outcomes revealed the positive relationships of the talent management process and organisational outcomes with employee participation and organisational engagement through the mediating role of job empowerment.
Keywords: talent management; organisational outcome; talent development; job empowerment; employee participation; organisational engagement; talent attraction; organisational impact.
Intellectual capital, leadership and competitive advantage: a study of the Malaysian electrical and electronics industry
by Muhammad Shujaat Mubarik, Nick Bontis
Abstract: The primary objective of this study was to examine the mediating role of intellectual capital in the association between strategic leadership capabilities and competitive advantage. The secondary objective was to examine the role of knowledge management in the association between strategic leadership capabilities and intellectual capital. Data was collected from 184 Malaysian electrical and electronics sector firms using previously published scales. Partial least square-structural equation modelling (PLS-SEM) was employed to analyse seven hypothesised relationships. Results revealed that strategic leadership capabilities play an apex role in attaining competitive advantage, whereas intellectual capital mediates the association between SLC and competitive advantage. Knowledge management further amplifies the role of human capital but does not play a significant role with relational or structural capital. This study represents a novel assessment of the role of intellectual capital in the association of strategic leadership capabilities and competitive advantage in the Malaysian electronics context.
Keywords: strategic leadership capabilities; intellectual capital; competitive advantage; partial least square; PLS; knowledge management.
Measuring role of IC in SME's profitability: evidence from India
by Sushila Soriya, Ruhee Mittal, Anshu Lochab
Abstract: The purpose of this paper is to investigate the association between intellectual capital components and their interactions with profitability of Indian small and medium-sized enterprises (SMEs). The profitability is measured by return on assets (ROA), return on equity (ROE) and business profitability (BP). The sample consists of the 345 SMEs listed on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) of India. During the initial screening of data a series of diagnostic test were carried out to identify the problems of heteroscedasticity, autocorrelation and endogenity. The two-step generalised method of moments (GMM) estimation is applied to study the association of intellectual capital components and their interactions with SMEs profitability. The results show that human capital and physical capital are the most influencing components of intellectual capital in the profitability of the SMEs in India. The interactions between human capital with structural capital has significant impact on ROA and BP. Through this study a novel attempt is made to examine the importance of intellectual capital and its components in small business of India. This will useful for the policy makers, entrepreneurs and owners of small business to determine the important physical, human and structural capital for improvising the profitability of their firms.
Keywords: generalised method of moments; GMM; intellectual capital; small and medium-sized enterprises; SMEs; profitability; India.
The effects of intellectual capital on risk and return of banks: nonlinear modelling approach
by Nicholas Asare, Joseph Mensah Onumah, Alex Dontoh
Abstract: This study examines the nonlinear effects of intellectual capital (IC) on the risks and returns of banks. Using the annual data of 366 banks from 26 African countries from 2007 to 2015, the study estimates: IC using the value-added intellectual coefficient (VAIC), risks and returns of banks using net interest margin, risk-adjusted return on assets, and insolvency risk. The results indicate that the relationship between net interest margin/insolvency risk and IC is nonlinear, U-shaped/ inverted U-shaped. The studys findings provide evidence for the extent of ICs contribution to the performance and stability of banks in Africa. This studys multidimensional conceptualisation of IC, risks and returns provides a robust systematic approach to a comprehensive understanding of aspects of the banking sector in emerging economies in Africa.
Keywords: intellectual capital; nonlinear; performance; stability; banks; Africa.
Intellectual capital and performance of Indian companies: an empirical investigation
by Shashi Kapoor, Ashish Saihjpal
Abstract: This paper aims to investigate relationship between IC and firm performance. Value added intellectual coefficient (VAIC) model developed by Pulic (2000) is used to measure the IC. In order to assess the performance of companies, return on assets, assets turnover ratio and market capitalisation to book value ratio are used as indicator of profitability, productivity and market valuation. Secondary data was extracted for a sample of 463 Indian companies. Descriptive statistics, correlation analysis and multiple regression model were applied for conducting necessary analysis. Findings revealed that VAIC is having significant relationship with measures of profitability only. During component investigation, it is found that capital employed efficiency has relationship with all measures of performance and human capital efficiency has relationship with profitability only.
Keywords: firm performance; human capital; intellectual capital; knowledge resources; value added intellectual coefficient; VAICTM.
Essential practices of school principals in developing professional learning communities in schools: a systematic literature review 2010-2019
by Mei Kin Tai, Abdull Kareem Omar
Abstract: The purpose of the review was to identify the essential practices applied by school principals in developing effective professional learning communities (PLCs) from 2010 to 2019. By employing the PRISMA guidelines, a total of 25 studies were identified based on the Scopus digital database. Five main practices of school principals had been identified in developing effective PLCs: principals' support, trust development, collaboration, organisational culture and the cultivation of teacher agency. The review summarised that the human side of the principal leadership is critical in leading effective PLCs; establishing a more humanised workplace in schools would motivate and energise teachers to engage in PLCs. In essence, school leadership is not solely a set of managerial tasks, but rather, a series of human interactions. The formula for leadership success is to create a climate that inspires teachers in schools to enhance the development and sustainability of PLCs and drive school change effectively.
Keywords: systematic review; school principal; principal leadership; professional learning communities; PLCs; teacher professional learning; principals' support; trust development; collaboration.
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™) 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 Tobin's Q measures market value. The findings show that among financial services firms, VAIC™ and its components enhance profitability but does not significantly affect market value. However, among non-financial services firms, VAIC™ 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.
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 website 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.
Career path challenges in the consultancy sector
by Leandro Pereira, Diogo Guanilho, Renato Lopes Da Costa, Álvaro Dias, Rui Gonçalves
Abstract: Careers have been evolving over the years, because of changes in the labour market and individual perspectives and objectives. Nowadays, looking for different working experiences within diverse companies are quite common, and individuals are more concerned about their career progression. In this context, organisations were pushed to learn and adapt their employee value proposition and place a higher focus on individual career needs. In the consultancy sector, career management can be much more complex and difficult to manage for organisations, since consultant's roles and responsibilities can quickly change. Therefore, this investigation aimed to understand how consultants see the relation between career management, seniority, and performance. The study's results were based on 92 responses from consultants and former consultants to an online survey and shown that while seniority still has a positive correlation with hierarchical levels, most consultants want to pursue a performance-based career management system, especially the experienced and older ones.
Keywords: career management; consulting organisations; seniority; performance.
The impact of intellectual capital on corporate economic performance in Iran in the face of sanctions
by Negin Nasri, Javad Ashrafi, Mahdi Jabbari Nooghabi
Abstract: This study aimed to investigate the relationship between intellectual capital and economic performance in Iran in the face of sanction. The period of the study will fascinate other scholars about this paper because there were unprecedented sanctions against the Iran market and many manufacturing industries were in financial distress. The paper sample consists of 543 observation and 109 firms listed on the Tehran Stock Exchange during a five-year period. We used OLS and panel regressions to test the research models. We find that intellectual capital and each of its elements have a positive and significant effect on economic performance in Iran in the face of sanction. This means that the higher level of intellectual capital in a company in Iran lead to the better economic performance in the face of sanction.
Keywords: human capital; structural capital; intellectual capital; corporate economic performance; economic value added; EVA; market value added; MVA; cash value added; CVA; stockholder value added; SVA; Iran.
The influence of intellectual capital through human capital and structural capital towards financial performance manufacturing companies (garment and textile sector)
by Donny Arif, Abdul Halik, Nikma Yucha
Abstract: This study aims to assess the garment and textile companies' financial performance for 2017-2019 with data taken from the IDX by measuring the intellectual capital variable through human capital and structural capital. This study uses a descriptive approach by maximising the regression function analysis method. The process with this method is considered capable of providing a final value that can measure its financial performance and provide acceptable conclusions. Each variable is measured by identifying the value taken from the IDX data for the 2017-2019 period, with the criteria for the number of employees of each company, the capital structure produced by each company, and the fixed asset turnover ratio. This study indicates that financial performance can run well through the direct route with IC without going through HC or structural capital. However, intellectual capital directly affects human capital and structural capital to improve overall financial performance.
Keywords: intellectual capital; human capital; structural capital; financial performance.
The interplay among higher education, technology, innovation and labour market efficiency: Middle East case
by Elsayed A.H. Elamir, Gehan A. Mousa
Abstract: The study builds a model that examines the effect of the quality of higher education and training on both innovation and the labour market efficiency. In addition the proposed model reflects the effect of the quality of technology readiness on the same factors using a sample of 12 Middle East countries from the period (2012 to 2018). The study uses the partial least squares method to estimate the model that shows the relationship among multiple dependent and independent variables, constructs unobserved factors, and finally tests the pre-defined assumptions against empirical data. The model suggests that the increase in the quality of higher education will increase the quality of both innovation and labour market efficiency. There is a significant positive effect of technology on higher education and training, innovation, and labour market efficiency. The study offers new perspectives on the relationships among the factors included in the proposed model.
Keywords: education quality; higher education; innovation; intellectual capital; partial least squares; PLS; structure equation model; technology; training; readiness; market labour.
Unlock knowledge potential from management consulting
by Renato Lopes Da Costa, Leandro Pereira, Álvaro Dias, Rui Gonçalves
Abstract: Management consulting area is a worldwide phenomenon of business increase over time. However, the subject field is poorly supported by academic research. There's a lot of knowledge that comes up every day from companies' transformations and performance improvement and business models changed. The research was done in a form of semi-structured interviews and questionnaires applied to management consultants and SME managers in Portugal, and it has shown that competency comes from different knowledge domains in business such as know, know-how and know-to be, making important to have processes to unlocked their knowledge to organisations and to the society.
Keywords: management consulting; knowledge transfer; strategy-as-practice; SAP.
Intellectual capital and corporate profitability: zooming into value added intellectual coefficient
by Irene Wei Kiong Ting, Qian Long Kweh, Jawad Asif, Hanh Thi My Le
Abstract: This study examines how value-added intellectual coefficient (VAIC™) and the modified VAIC™ affect corporate profitability. Using a Vietnamese corporate financial dataset of 1,624 firm-year observations for the period of 2009-2018, this study finds that intellectual capital (IC), as estimated by VAIC™ and modified VAIC™, has positive impacts on corporate profitability. However, the positive association between IC and profitability is clearer in the scatterplot involving the modified VAIC™. Although VAIC™ and modified VAIC™ consistently suggest positive impacts of IC on corporate profitability, the components of the two show different outcomes. This study stimulates the need to further examine not only VAIC™ but also other IC measurement models to help practitioners better estimate their IC for the best possible corporate profitability.
Keywords: intellectual capital; value added intellectual coefficient; VAIC™; modified VAIC™; corporate profitability.
A meta-analysis of the relationship between intellectual capital and innovation in businesses
by Zakaria Nejjari, Hanane Aamoum
Abstract: The objective of this article is to look into the connection between intellectual capital (IC) and innovation through a meta-analysis. It enlarges the limited stream of literature by concentrating on identifying and distinguishing IC influences on innovation by providing an IC paradigm to get the multiple facets of innovation at the organisational degree. This study is based on a meta-analysis from a variety of sources. This work is a review of papers that allow for a meta-analysis examination of articles related to two study variables: intellectual capital and innovation. The findings suggest that IC and its specific elements have an impact on a firm's ability to innovate. Based on the business's radical or incremental innovation approach, the impact is at various degrees. Intellectual capital (IC) is a source of innovation in businesses, according to the conclusions of the meta-analysis.
Keywords: intellectual capital; innovation; meta-analysis; innovation strategy; human capital; organisational capital.