VSTE
Littera Scripta

ISSN (online): 1805-9112

Research ArticleOpen access

Intellectual Capital and Business Performance Management: Knowledge Management and the Value of Knowledge

Peter Gallo1, Jaroslav Kollmann1, Romana Kušnirová1, Erjona Deshati2, Libuše Turinská3

  1. Institute of Technology and Business in České Budějovice, Faculty of Corporate Strategy, Department of Management
  2. Canadian Institute of Technology, Faculty of Economy
  3. Pan-European University

Abstract

Human, structural, and relational intellectual capital and its impact on service sector commercial viability in modern corporate competitiveness are the focus of our research. This study uses questionnaires, surveys, and analytical, deductive, and comparative scientific research methodologies to assess intellectual capital's computational and strategic capacities through recruitment, employee development, evaluation, and engagement. A structured 20-question survey with 490 respondents was done in 2021 and 2022. Chi-square tests and Pearson's coefficient validated hypotheses and identified relationships. Despite industry underutilization of intellectual capital, our findings show a crucial but frequently overlooked link between intellectual capital and organisational learning and advancement. The results reveal that many service industry companies are uninformed of intellectual capital's benefits, which could hinder their innovation, adaptation, and growth in changing market conditions. This research shows linkages between training, employee satisfaction, and engagement, urging an organisational shift towards learning to advance society and survive the market. Discover compelling facts and practical consequences that show the need of prioritising and strategically employing intellectual capital to impact organisational trajectories towards sustained economic success.

Keywords:Intellectual capitalstrategic managementperformance managementknowledge management

References

  1. AFSHARI L., HADIAN NASAB A., (2020). Enhancing organizational learning capability through managing talent: Mediation effect of intellectual capital. Human Resource Development International, 24(1), 48–64. https://doi.org/10.1080/13678868.2020.1727239.
  2. ALROWWAD A., ABUALOUSH S.H., MASA'DEH R., (2020). Innovation and intellectual capital as intermediary variables among transformational leadership, transactional leadership, and Organizational Performance. Journal of Management Development, 39(2), 196–222. https://doi.org/10.1108/jmd-02-2019-0062.
  3. ASTUTI P.D., CHARIRI A., ROHMAN A., (2021). Intellectual capital and disclosure practices of miscellaneous industries: Evidence from cable companies in Indonesia. International Journal of Business and Society, 22(3), 1283–1301. https://doi.org/10.33736/ijbs.4302.2021.
  4. BAYDAR F., CETİN M., (2021). The model of relationships between intellectual capital, learning organizations, and innovation-oriented organizational structures in educational organizations. Eurasian Journal of Educational Research, 21(94). https://doi.org/10.14689/ejer.2021.94.12.
  5. BAYO-MORIONES A., DE LA TORRE R., (2022). Analysing the relationship between QM, performance appraisal and pay for performance. Total Quality Management & Business Excellence, 33(9-10), 1056–1083. https://doi.org/10.1080/14783363.2021.1933422.
  6. BUALLAY A., ABUHOMMOUS A. A., KUKREJA G., (2020). The relationship between intellectual capital and employees' productivity: Evidence from the Gulf Cooperation Council. Journal of Management Development, 40(6), 526–541. https://doi.org/10.1108/jmd-05-2019-0210.
  7. CHATTERJI N., KIRAN R., (2021). Intellectual capital and intellectual imperatives of higher education sector: An Emerging Economy Perspective. International Journal of Learning and Intellectual Capital, 18(1), 45. https://doi.org/10.1504/ijlic.2021.113660.
  8. CHRISTENSEN-SALEM A., KINICKI A., PERRMANN-GRAHAM J., WALUMBWA F.O., (2022). CEO performance management behaviors’ influence on TMT flourishing, job attitudes, and firm performance. Human Relations, https://doi.org/10.1177/00187267221119767.
  9. DHARNI K., JAMEEL S., (2021). Trends and relationship among intellectual capital disclosures, patent statistics and firm performance in Indian Manufacturing Sector. Journal of Intellectual Capital, 23(4), 936–956. https://doi.org/10.1108/jic-05-2020-0148.
  10. DONLAGIC ALIBEGOVIC S., MEŠANOVIC M., (2022). Knowledge management implications to the financial performance. Management, 27(2), 247–260. https://doi.org/10.30924/mjcmi.27.2.13.
  11. FARIA V.F., CORREA F, TOLENTINO R.S.S., MUYLADER C.F., (2022). The impact of intellectual capital on financial performance of small and medium-sized enterprises. Navus - Revista de Gestão e Tecnologia, 12, 01–13. https://doi.org/10.22279/navus.2022.v12.p01-13.1751.
  12. FUZI N. M., ADAM S., RAMDAN M. S., ONG S. Y. Y., OSMAN J., KOLANDAN S., ARIFFIN S. Z. M.,
  13. JAMALUDDIN N. S., ABDULLAH K., (2022). Sustainability Management Accounting and organizational performance: The mediating role of environmental management system. Sustainability, 14(21), 14290. https://doi.org/10.3390/su142114290.
  14. GREENWOOD P., E., NIKULIN M., S., (1996). A Guide to Chi-Squared Testing. Wiley. ISBN 9780471557791
  15. HALDORAI K., KIM W.G., GARCIA R.L.F, (2022). Top management green commitment and green intellectual capital as enablers of Hotel Environmental Performance: The mediating role of green human resource management. Tourism Management, 88, 104431. https://doi.org/10.1016/j.tourman.2021.104431.
  16. HATAMIZADEH N., AHMADI M., VAMEGHI R., HOSSEINI M. I., (2020). Intellectual capital in rehabilitation organizations. Journal of Health Research, 34(3), 195–207. https://doi.org/10.1108/jhr-04-2019-0077.
  17. HOBEN T., (2012). Distributions of Correlation Coefficients. Springer New York. ISBN 9781468463668
  18. HOGLUND L., MARTENSSON M., THOMPSON K., (2021). Strategic Management, management control practices and public value creation: The Strategic Triangle in the Swedish public sector. Accounting, Auditing & Accountability Journal, 34(7), 1608–1634. https://doi.org/10.1108/aaaj-11-2019-4284.
  19. HUANG Z., HE J., REN X., (2021). Application of artificial intelligence in enterprise knowledge management performance evaluation. Knowledge Management Research & Practice, 1–9. https://doi.org/10.1080/14778238.2020.1850187.
  20. JARDON C. M., MARTINEZ-COBAS X,. (2021). Measuring intellectual capital with financial data. PLOS ONE, 16(5). https://doi.org/10.1371/journal.pone.0249989.
  21. KALIYEVA S., BAISALOVA B., NATHAN J., (2022). Managing formation of competitive human capital in project-oriented companies. Journal of Eastern European and Central Asian Research (JEECAR), 9(6), 992–1007. https://doi.org/10.15549/jeecar.v9i6.950.
  22. KHALIQUE M., MANSOR S. A., ISA A. H. B. M., SHAARI J. A. N. B., (2014). Intellectual capital and challenges of organizations in the twenty-first century. Advances in Human Resources Management and Organizational Development, 91–101. https://doi.org/10.4018/978-1-4666-4530- 1.ch006.
  23. KULINICH T., PIKUS R., KUZMENKO O., VASILIEVA S., MELNIK V., OREL M., (2022). Cognitive aspects of the strategic management system under uncertainty. Postmodern Openings, 13(3), 166–179. https://doi.org/10.18662/po/13.3/483.
  24. KUSI-SARPONG S., MUBARIK M. S., KHAN S. A., BROWN S., MUBARAK M. F., (2022). Intellectual capital, blockchain-driven supply chain and sustainable production: Role of Supply Chain Mapping. Technological Forecasting and Social Change, 175, 121331. https://doi.org/10.1016/j.techfore.2021.121331.
  25. LIAO H.-Y., HSU C.-T., CHIANG H.-C., (2021). How does green intellectual capital influence employee pro-environmental behavior? the mediating role of Corporate Social Responsibility. International Journal of Management Studies, 28. https://doi.org/10.32890/ijms2021.28.2.2.
  26. MAAKE G., HARMSE C. P., SCHULTZ C. M., (2021). Performance management as a mediator for work engagement and employment relationships in the public sector in South Africa. SA Journal of Human Resource Management, 19. https://doi.org/10.4102/sajhrm.v19i0.1507.
  27. MAČERINSKIENĖ I., SURVILAITĖ, S., (2019). Company’s intellectual capital impact on market value of Baltic countries listed enterprises. Oeconomia Copernicana, 10(2), 309–339. https://doi.org/10.24136/oc.2019.016.
  28. MARTINIDIS G., KOMNINOS N., DYJAKON A., MINTA S., HEJNA M., (2021). How intellectual capital predicts innovation output in EU regions: Implications for Sustainable Development. Sustainability, 13(24), 14036. https://doi.org/10.3390/su132414036.
  29. NAZIR M. I., TAN Y., NAZIR M. R., (2021). Intellectual capital performance in the financial sector: Evidence from China, Hong Kong, and Taiwan. International Journal of Finance & Economics, 26(4), 6089–6109. https://doi.org/10.1002/ijfe.2110.
  30. NKAMBULE N. A., WANG W.-K., TING I. W. K., LU W.-M., (2022). Intellectual capital and firm efficiency of US multinational software firms. Journal of Intellectual Capital, 23(6), 1404–1434. https://doi.org/10.1108/jic-02-2021-0041.
  31. OBEIDAT S., AL-TAMIMI K., HAJJAT E., (2021). The Effects of Intellectual Capital and Financial Leverage on Evaluating Market Performance. Journal of Asian finance economics and business, 8(3), 201-208. https://doi.org/10.13106/jafeb.2021.vol8.no3.0201.
  32. PASARIBU F., BULAN T. R. N., MUZAKIR M., PRATAMA K., (2021). Impact of strategic leadership and Organizational Innovation on the strategic management: Mediational role of IT capability. Polish Journal of Management Studies, 24(2), 354–369. https://doi.org/10.17512/pjms.2021.24.2.22.
  33. PRATAMA B. C., INNAYAH M. N., (2021). Can family ownership strengthen the relationship between intellectual capital and performance in ASEAN high-tech firms? International Journal of Business and Society, 22(3), 1102–1122. https://doi.org/10.33736/ijbs.4286.2021.
  34. PUZYNYA T. A., AVILOVA N. A., DYSHLOVOI I. N., NIKOLSKAYA E. Y., SOLNTSEVA O. G., (2022). Intellectual capital as a factor of increasing companies’ competitiveness. Revista online de Política e Gestão Educacional. https://doi.org/10.22633/rpge.v26iesp.2.16554.
  35. RADONIČ M., MILOSAVLJEVIĆ M., KNEŽEVIĆ S., (2021). Intangible assets as financial performance drivers of IT industry: Evidence from an emerging market. E+M Ekonomie a Management, 24(2), 119–135. https://doi.org/10.15240/tul/001/2021-2-008.
  36. SAAD M. A., (2020). The relationship between Strategic Leadership and Intellectual Capital Management: Evidence from the faculty members at the Northern Border University. International Journal of Advanced and Applied Sciences, 7(5), 27–38. https://doi.org/10.21833/ijaas.2020.05.005.
  37. SALEHI M., ALI FAHAMI M., ZIMON G., HOMAYOUN S., (2021). The effect of knowledge management on intellectual capital, social capital, and firm Innovation. Journal of Facilities Management, 20(5), 732–748. https://doi.org/10.1108/jfm-06-2021-0064.
  38. SAMIMI M., CORTES A. F., ANDERSON M. H., HERRMANN P., (2022). What is strategic leadership? developing a framework for future research. The Leadership Quarterly, 33(3), 101353. https://doi.org/10.1016/j.leaqua.2019.101353.
  39. SARTAWI A. M. A., (2020). Social media disclosure of intellectual capital and firm value. International Journal of Learning and Intellectual Capital, 17(4), 312. https://doi.org/10.1504/ijlic.2020.113146.
  40. SHEIKH A. M., (2022). Green Intellectual Capital and Social Innovation: The Nexus. Journal of Intellectual Capital, 23(6), 1199–1220. https://doi.org/10.1108/jic-11-2020-0361.
  41. TASGIT Y. E., HORUZ I., KOMUR T., YAVUZ A., (2023). Stratejik Farkındalık ve Stratejik çeviklik arasındaki ı lişkide Stratejik Yeteneğin Aracılık Rolü. Sosyoekonomi, 297–320. https://doi.org/10.17233/sosyoekonomi.2023.01.16.
  42. TORRE C., TOMMASETTI A., MAIONE G., (2021). Technology usage, intellectual capital, firm performance and employee satisfaction: The accountants' idea. The TQM Journal, 33(3), 545–567. https://doi.org/10.1108/tqm-04-2020-0070.
  43. ULLAH I., MIRZA B., JAMIL A., (2021). The influence of ethical leadership on Innovative Performance: Modelling the mediating role of Intellectual Capital. Journal of Management Development, 40(4), 273–292. https://doi.org/10.1108/jmd-08-2020-0277.
  44. VO D.H., TRAN N.P., (2022). Measuring National Intellectual Capital and its effect on country’s competitiveness. Competitiveness Review: An International Business Journal. https://doi.org/10.1108/cr-08-2021-0110.
  45. WANG Z., CAI S., LIU M., IIU D., MENG L., (2020). The effects of self-reflection on individual intellectual capital. Journal of Intellectual Capital, 21(6), 1107–1124. https://doi.org/10.1108/jic-03-2019-0043.
  46. XU J., HARIS M., LIU F., (2022). Intellectual capital efficiency and firms' Financial Performance Based on Business Life Cycle. Journal of Intellectual Capital. https://doi.org/10.1108/jic-12-2020- 0383.
  47. ZEIDAN S., (2021). Organisational Commitment, intentions to quit, intellectual capital and firm's market value and Innovation Performance. International Journal of Knowledge Management Studies, 12(3), 227. https://doi.org/10.1504/ijkms.2021.116405.
  48. ZHANG J., WANG Y., (2022). How to improve the corporate sustainable development? - the importance of the intellectual capital and the role of the investor confidence. Sustainability, 14(7), 3749. https://doi.org/10.3390/su14073749.