Abstract
The intellectual capital has been stressed to play a crucial role in determining firm performance in current knowledge economies. Theoretical works as well as several empirical studies have declared its importance as a value creation driver. The aim of our study is to challenge these paradigms in the context of SMEs in Slovakia. Therefore, we examine the relationship between intellectual capital (measured using financial data through VAICTM) and firm value creation (using the ROCE measure as the most appropriate value creation proxy in this context). Also, we control for the effect of firm size and leverage in this relation. We based our analysis on 2011 financial statements of 3311 Slovak SMEs operating in ten different industrial sections. The data have been obtained from a business information portal (CRIBIS Universal Register). To examine the relation between intellectual capital and value creation while accounting for industry effects we constructed a set of regression models and analysed the explanatory power of intellectual capital performance in firm value creation. Our results suggest, that intellectual capital performance represents a significant value creation driver in each of the examined industries, and its explanatory power exceeds in all cases but one the explanatory power of control variables. Therefore, our results confirm the paradigm of intellectual capital importance for value creation also in the context of small and medium size companies (SMEs) in Slovakia.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
Alipour M (2012) The effect of intellectual capital on firm performance: an investigation of Iran insurance companies. Meas Bus Excell 16(1):53–66
Andriessen D (2004) IC valuation and measurement. Classifying the state of the art. J Intellect Cap 5(2):230–242
Bausch A, Hunoldt M, Matysiak L (2009) Superior performance through value-based management. In: Bausch A, Schwenker B (eds) Handbook utility management. Springer, Berlin, pp 15–36
Bontis N (ed) (2002) World congress on intellectual capital readings. Butterworth Heinemann, Boston, MA
Burja C (2013) Analysis model for return on capital employed. Annals – Economy Series, vol 1. Constantin Brancusi University, Faculty of Economics, Targu Jiu, pp 82–87
Clarke M et al (2011) Intellectual capital and firm performance in Australia. J Intellect Cap 12(4):505–530
Chan KH (2009) Impact of intellectual capital on organizational performance: an empirical study of companies in the Hang Seng Index (Part 2). Learn Organ 16(1):22–39
Chen M et al (2005) An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. J Intellect Cap 6(2):159–176
Edvinsson L (1997) Developing intellectual capital at Skandia. Long Range Plan 30(3):266–373
European Commission (2005) The new SME definition. User guide and model declaration. Publications Office of the EU, Luxembourg
Holienka M, Pilkova A (2014) Comparing impact of intellectual capital on firm performance before and after crisis. In: Caganova D, Cambal M (eds) Proceedings of the 6th European conference on intellectual capital, Trnava
Iazzolino G, Laise D (2013) Value added intellectual coefficient (VAIC). A methodological and critical review. J Intellect Cap 14(4):547–563
Javornik S et al (2012) The efficiency of intellectual capital investments as a potential leading indicator. Int Bus Econ Res J 11(5):535–558
Lynn B (1998) Intellectual capital. CMA Mag 72(1):10–15
Mondal A, Ghosh S (2012) Intellectual capital and financial performance of Indian banks. J Intellect Cap 13(4):515–530
Mouritsen J et al (2002) Developing and managing knowledge through intellectual capital statements. J Intellect Cap 3(1):10–29
Munkova D et al (2012) Impact of cognitive-individual variables on process of foreign language learning. Proc Soc Behav Sci 46(1):5430–5434
OECD (2008) Intellectual assets and value creation—synthesis report. OECD, Paris
Pablos POD (2003) Knowledge management projects: state of the art in the Spanish manufacturing industry. Int J Manuf Technol Manag 14(4):297–310
Papula J, Volna J (2011) Intellectual capital as value adding element in knowledge management. In: Knowledge as business opportunity. In: Proceeding of the conference of the International School for Social and Business Studies, Celje
Pilkova A et al (2013) The influence of intellectual capital on firm performance among Slovak SMEs. In: Proceedings of the 10th international conference on intellectual capital, knowledge management and organizational learning (ICICKM), Washington, DC
Pulic A (1998) Measuring the performance of intellectual potential in the knowledge economy. Paper presented at the 2nd world congress on the management of intellectual capital, Hamilton, Jan 1998
Pulic A (2000) VAIC™ – an accounting tool for IC management. Int J Technol Manag 20(5–8):702–714
Pulic A (2004) Intellectual capital – does it create or destroy value? Meas Bus Excel 8(1):62–68
Pulic A (2008) The principles of intellectual capital efficiency – a brief description. Croatian Intellectual Capital Center, Zagreb
Puntillo P (2009) Intellectual capital and business performance from Italian banking industry. Electron J Corp Financ 4(2):97–115
Rutherford BA (2002) Design and implementation of return on capital employed performance indicators within a trading regime: the case of executive agencies. Financ Account Manag 18(1):73–101
SCB—Slovak Credit Bureau (2012) Mean values of financial indicators of economic activities in Slovak Republic for year 2011. SCB—Slovak Credit Bureau, Bratislava
Slovak Business Agency (2014) The report on state of SMEs in Slovakia. Slovak Business Agency, Bratislava
Stern JM, Stewart GB, Chew DH (1996) EVA: an integrated financial management system. Eur Financ Manag 2(2):223–245
Stewart T (1998) Intellectual capital. Nicholas Breadley, London
Sveiby KE (1997) The new organisational wealth: managing and measuring knowledge based assets. Berrett-Kohler, San Francisco
Sveiby KE (2010) Methods for measuring intangible assets. http://www.sveiby.com/articles/IntangibleMethods.htm. Accessed 4 Dec 2014
Zeghal D, Maaloul A (2010) Analyzing value added as an indicator of intellectual capital and its consequences on company performance. J Intellect Cap 11(1):39–60
Acknowledgements
Authors would like to thank to CRIF—Slovak Credit Bureau for providing access to CRIBIS Universal Register data used in this study.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Appendix
Rights and permissions
Copyright information
© 2016 Springer International Publishing Switzerland
About this paper
Cite this paper
Holienka, M., Pilková, A., Kubišová, M. (2016). The Influence of Intellectual Capital Performance on Value Creation in Slovak SMEs. In: Dudycz, T., Osbert-Pociecha, G., Brycz, B. (eds) The Essence and Measurement of Organizational Efficiency. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-21139-8_5
Download citation
DOI: https://doi.org/10.1007/978-3-319-21139-8_5
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-21138-1
Online ISBN: 978-3-319-21139-8
eBook Packages: Business and ManagementBusiness and Management (R0)