Social Indicators Research

, Volume 137, Issue 1, pp 281–315 | Cite as

Measuring Human, Physical and Structural Capital Efficiency Performance of Insurance Companies

  • Mohammad Nourani
  • VGR Chandran
  • Qian Long Kweh
  • Wen-Min Lu
Article
  • 151 Downloads

Abstract

Based on the strategy perspective of intellectual capital, this paper proposes an integrated framework that is practical to estimate the human, physical, and structural capitals (intellectual capital) efficiency performance, at firm level. This paper uses a dynamic network data envelopment analysis model to estimate the intellectual capital efficiency at three levels in the insurance industry over the period of 2005–2012. Within the insurance industry, deficiencies occurred in the human and structural capital stages as opposed to the physical capital stage. A further investigation indicates that total investment is the major concern for the deficiencies. Moreover, the cluster analysis highlights the strengths and weaknesses of the insurers based on their inherently similar efficiencies. Malaysian insurance industry need to translate and promote the existing knowledge-based economy agenda lauded by the government to improve the intellectual capital efficiency, particularly at the human capital level.

Keywords

Human capital Physical capital Structural capital Intellectual capital Strategy perspective approach The insurance industry Data envelopment analysis 

Notes

Acknowledgements

Authors would like to sincerely thank the editor and three anonymous referees for their constructive comments and invaluable suggestions. Their remarks have substantially enhanced the quality of the paper. The first and second authors appreciate financial support received from the University of Malaya [PG185-2014B].

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© Springer Science+Business Media Dordrecht 2017

Authors and Affiliations

  1. 1.Department of Economics, Faculty of Economics and AdministrationUniversity of MalayaKuala LumpurMalaysia
  2. 2.Department of Development Studies, Faculty of Economics and AdministrationUniversity of MalayaKuala LumpurMalaysia
  3. 3.Institute of Management TechnologyDubai International Academic CityDubaiUAE
  4. 4.Department of Financial ManagementNational Defense UniversityTaipeiTaiwan

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