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The Relationship Between Intellectual Capital in the Fourth Industrial Revolution and Firm Performance in Jordan

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The Fourth Industrial Revolution: Implementation of Artificial Intelligence for Growing Business Success

Part of the book series: Studies in Computational Intelligence ((SCI,volume 935))

Abstract

This paper attempts to determine if intellectual capital (IC) has an impact on firm performance in the industrial companies in Jordan. A quantitative approach was used, with value-added intellectual coefficient (VAICTM) methodology of IC measurement. Secondary data were used in measuring the study variables. The relationship between VAICTM in fourth industrial revolution (IR 4.0) and the ratios of earnings per share (EPS) and return on assets (ROA) were examined. The study sample comprised 50 industrial companies listed on the Amman Stock Exchange (ASE) covering the 2008–2017 period. Multiple Regression analysis was used in data analysis, involving panel data models. The obtained results prove a positive significant influence of VAICTM on EPS and ROA, and a positive significant relationship between human capital efficiency (HCE) and structural capital efficiency (SCE), and EPS and ROA, while no relationship was found between capital employed efficiency (CEE) and EPS and ROA. The results suggest the need for industrial companies in Jordan and in the Middle East to focus on intellectual capital (IC) elements, particularly human capital (HC), which is core to VAICTM. Moreover, this study is valuable to policymakers and managers in determining the industry development for better corporate returns.

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Authors and Affiliations

  1. University Malaysia Terengganu, Kuala Terengganu, Malaysia

    Kamelia Moh’d Khier Al Momani, Nurasyikin Jamaludin & Wan Zanani Wan Abdullah

  2. Al-Najah National University, Al-Najah, Palestine

    Abdul-Naser Ibrahim Nour

Authors
  1. Kamelia Moh’d Khier Al Momani
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  2. Abdul-Naser Ibrahim Nour
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  3. Nurasyikin Jamaludin
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  4. Wan Zanani Wan Abdullah
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Correspondence to Kamelia Moh’d Khier Al Momani .

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Editors and Affiliations

  1. College of Business and Finance, Ahlia University, Manama, Bahrain

    Allam Hamdan

  2. Information Technology Department, Faculty of Computers and Information, Cairo University, Giza, Egypt

    Aboul Ella Hassanien

  3. College of Business and Finance, Ahlia University, Manama, Bahrain

    Anjum Razzaque

  4. Middle East Technical University - Northern Cyprus Campus, Kalkanlı, Güzelyurt, KKTC, Turkey

    Bahaaeddin Alareeni

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Al Momani, K.M.K., Nour, AN.I., Jamaludin, N., Abdullah, W. (2021). The Relationship Between Intellectual Capital in the Fourth Industrial Revolution and Firm Performance in Jordan. In: Hamdan, A., Hassanien, A.E., Razzaque, A., Alareeni, B. (eds) The Fourth Industrial Revolution: Implementation of Artificial Intelligence for Growing Business Success. Studies in Computational Intelligence, vol 935. Springer, Cham. https://doi.org/10.1007/978-3-030-62796-6_4

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