Articlegreen2013

Intellectual capital and performance within the banking sector of Luxembourg and Belgium

303 citations0/0 files storedJournal of Intellectual Capital

No readable copy stored yet — this record is metadata only.

Intellectual Capital and Performance Analysis Accounting Theory and Financial Reporting Accounting and Organizational Management

Abstract

Purpose Intellectual capital is widely acknowledged as the most critical resource of modern organizations. Nevertheless, empirical evidence on its actual contribution to the dynamics of the value creation process remains scarce, especially within certain sectors and geographic regions. The purpose of this paper is to address this gap by investigating the effects of intellectual capital and its components on business performance in banking institutions within Luxembourg and Belgium. Design/methodology/approach This empirical research is conducted using a dedicated survey instrument administered to over 200 banks. Data analysis is achieved through structural equation modeling. Findings Results indicate that human capital contributes both directly and indirectly to business performance in the banking sector. Structural and relational capital are positively related to business performance, though results are not statistically significant. Surprisingly, relational capital has been evidenced to negatively moderate the effect of structural capital on performance. Research limitations/implications Traditional limitations of a cross‐sectional study apply with respect to the attribution of causality and the time lag effects. Practical implications A set of reliable items to capture intellectual capital has been identified and represents actionable knowledge for implementing an intellectual capital dashboard in banks. The dominant role of human capital also provides insight to managers with respect to business performance levers. Originality/value Disentangling the effects of intellectual capital on business performance is of the utmost importance in service firms, as they are heavily reliant on intangible resources and capabilities. This research contributes to develop current understanding of these effects. Moreover, interaction effects between human, structural and relational capital have also been uncovered, thus extending prior knowledge on these complex relationships.

Citations in this library

Stored only when both papers are in the corpus — 303 citations exist upstream.

References

1996Toward a knowledge‐based theory of the firm 1995The Theory of the Growth of the Firm 1998Social Capital, Intellectual Capital, and the Organizational Advantage 2001The Chain of Effects from Brand Trust and Brand Affect to Brand Performance: The Role of Brand Loyalty 2003A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research 1984Employee-Organization Linkages: The Psychology of Commitment, Absenteeism, and Turnover.2005Social Capital, Networks, and Knowledge Transfer 1998Intellectual capital: The new wealth of organizations

Cited by

2018Antecedents and consequences of intellectual capital 2018How strategic knowledge management drives intellectual capital to superior innovation and market performance 2017Determinants of financial performance of Islamic banks: an intellectual capital perspective 2018The impact of corporate social responsibility (CSR) knowledge on corporate financial performance: evidence from the European banking industry 2016The impact of the intellectual capital efficiency on commercial banks performance: Evidence from the US

Imported from OpenAlex (CC0) — nothing here is generated.