Intellectual capital and performance in causal models

Wen‐Ying Wang (Department of Accounting, National Chengchi University, Taipei, Taiwan)
Chingfu Chang (Department of Accounting, National Chengchi University, Taipei, Taiwan)

Journal of Intellectual Capital

ISSN: 1469-1930

Publication date: 1 June 2005

Abstract

Purpose

This paper seeks to investigate the impact of intellectual capital elements on business performance, as well as the relationship among intellectual capital elements from a cause‐effect perspective.

Design/methodology/approach

The partial least squares approach is used to examine the information technology (IT) industry in Taiwan.

Findings

Results show that intellectual capital elements directly affect business performance, with the exception of human capital. Human capital indirectly affects performance through the other three elements: innovation capital, process capital, and customer capital. There also exists a cause‐effect relationship among four elements of intellectual capital. Human capital affects innovation capital and process capital. Innovation capital affects process capital, which in turn influences customer capital. Finally, customer capital contributes to performance. The cause‐effect relationship between leading elements and lagged elements provides implications for the management of firms in the IT industry.

Research limitations/implications

The model proposed in this study is applicable to the high‐tech IT industry. Modification of the proposed model may be needed in applying this model to other industries.

Practical implications

This study helps management identify relevant intellectual capital elements and their indicators to enhance business performance.

Originality/value

This paper is a seminal work to propose an integrated cause‐effect model to investigate the relationship among elements of intellectual capital for IT in Taiwan.

Keywords

Citation

Wen‐Ying Wang and Chingfu Chang (2005) "Intellectual capital and performance in causal models", Journal of Intellectual Capital, Vol. 6 No. 2, pp. 222-236

Download as .RIS

DOI

: https://doi.org/10.1108/14691930510592816

Publisher

:

Emerald Group Publishing Limited

Copyright © 2005, Emerald Group Publishing Limited

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