Efficiency of Malaysian politically connected insurers: revisiting the resource-based view
by Noor Azlinna Azizan; Qian Long Kweh; Wei Kiong Irene Ting
J. for International Business and Entrepreneurship Development (JIBED), Vol. 8, No. 3, 2015

Abstract: The resource-based view theory that has influenced the field of intellectual capital management concerns a company's competency and capability. From the theory, the first purpose of this study is to examine the impacts of intellectual capital (IC) and political connections on the efficiency of Malaysian general insurance companies. The second purpose is to evaluate the moderating effect of political connections on the relationship between IC and efficiency. We apply data envelopment analysis (DEA) to measure efficiency. Following prior studies, we employ Value Added Intellectual Coefficient (VAIC™) as a measure of IC. Using a panel dataset of 64 firm-year observations over the period 2008-2011, we find that politically connected insurers have higher levels of VAIC™ and efficiency. Our regression analysis also shows that VAIC™ and political connections are significantly and positively related to efficiency. The interaction term on VAIC and political connections is also significantly positive. One implication of this study is that it may provide some insight for Malaysian general insurers in managing their resources, especially IC as well as sources from political connections.

Online publication date: Fri, 24-Jul-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the J. for International Business and Entrepreneurship Development (JIBED):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com