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1 – 10 of 653Ahmed Mohamed Habib and Nahia Mourad
This study develops a robust model to measure intellectual capital efficiency (ICE). It also analyzes ICE across Gulf companies, sectors and countries.
Abstract
Purpose
This study develops a robust model to measure intellectual capital efficiency (ICE). It also analyzes ICE across Gulf companies, sectors and countries.
Design/methodology/approach
This study uses data envelopment analysis (DEA), the Malmquist productivity index (MPI), difference tests and additional analyses on a dataset consisting of 276 firm-year observations.
Findings
The findings indicate that the study model is robust to additional analysis. The results show significant differences in ICE between firms during the study period and noteworthy differences between countries, where the Qatari and Bahraini firms achieved the best ICE compared to other countries.
Practical implications
The results of this study have significant ramifications for increasing knowledge of ICE analysis models among relevant parties. In addition, the findings may affect trading strategies because investors and financiers are motivated by the potential for lucrative financial returns on their investments in companies that prioritize ICE strategies.
Originality/value
This research contributes to the literature by proposing a robust model for estimating the ICE. It also compares ICE across Gulf companies, industries and countries to shed light on their ICE challenges.
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Mohammad Faraz Naim, Nazia Shehzad, Moza Tahnoon Al Nahyan, Fauzia Jabeen and Antonio Usai
This study aims to test the relationship between knowledge sharing and employee engagement. In particular, the mediating and moderating roles of competency development and social…
Abstract
Purpose
This study aims to test the relationship between knowledge sharing and employee engagement. In particular, the mediating and moderating roles of competency development and social climate, respectively, are also the focus of this research.
Design/methodology/approach
Of self-completed questionnaires collected from luxury hotels in India, 507 are usable for data analysis. The structural equation modelling (SEM) was used to examine the proposed hypotheses.
Findings
The structural equation modeling–based results illustrate a positive significant association between knowledge sharing and employee engagement. Also, there is a significant support to establish the mediating effect of competency development and the moderating effect of social climate on this relationship. The expansion of competencies of employees achieved through knowledge sharing leads to higher engagement.
Research limitations/implications
This work is carried out in Indian hospitality sector and may not be generalizable to other cultural settings.
Practical implications
This study’s results add to the knowledge sharing scholarship by envisaging a possible association with an employee attitudinal outcome, i.e. employee engagement.
Originality/value
To the best of the authors’ knowledge, this is one of the first studies to unravel the social processes through which knowledge sharing enhances competency development, and subsequently employee engagement, mainly through the influence of social climate.
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Emad Sayed, Karim Mansour and Khaled Hussainey
This study aims to examine the impact of intangible investment on non-financial performance. This study also examines the moderating effect of the COVID-19 pandemic on this…
Abstract
Purpose
This study aims to examine the impact of intangible investment on non-financial performance. This study also examines the moderating effect of the COVID-19 pandemic on this relationship.
Design/methodology/approach
This study extracted data from annual reports for a sample of Egyptian firms from 2012 to 2020. This study used the generalized method of moment for testing research.
Findings
This study finds that intangible investment positively affects non-financial performance and the COVID-19 pandemic has weakened this positive effect.
Research limitations/implications
A small sample size is one of the limitations of this study. Furthermore, because of the lack of data in Egypt, the analysis does not include other measures of intangible investment. Finally, the sectoral analysis does not include all sectors because of the lack of observations in some sectors.
Practical implications
This study offers practical and social implications. It would help policymakers, regulators and shareholders to realize the importance of the intangible investment and also shed light on the consequences of the COVID-19 pandemic. It also offers managerial implications. It motivates managers to invest more in intangible investment as an important resource to increase customer satisfaction and loyalty, enhance the internal operating performance and improve learning and growth, which result in creating sustainable competitive advantage.
Originality/value
This study provides new empirical evidence on the impact of intangible investment on different dimensions of non-financial performance. To the best of the authors’ knowledge, this paper offers the first empirical evidence on the moderating role of the COVID-19 pandemic in the relationship between intangible investment and non-financial performance.
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Bambang Tjahjadi, Noorlailie Soewarno, Annisa Ayu Putri Sutarsa and Johnny Jermias
This study aims to investigate the direct effect of intellectual capital on the organizational performance of Indonesian state-owned enterprises (SOEs) and their subsidiaries…
Abstract
Purpose
This study aims to investigate the direct effect of intellectual capital on the organizational performance of Indonesian state-owned enterprises (SOEs) and their subsidiaries. Furthermore, it also examines whether the relationship is mediated by open innovation and moderated by organizational inertia.
Design/methodology/approach
This study is designed as quantitative research. A survey method is employed to collect data by distributing questionnaires to the upper-level managers of the SOEs and their subsidiaries. A total of 293 questionnaires were distributed to the respondents, and 97 responses were obtained for further analysis. The partial least square structural equation modeling (PLS-SEM) is used to test the hypotheses. A mediation-moderation research framework is employed.
Findings
The results show that intellectual capital has a positive effect on organizational performance. Further results also demonstrate that open innovation mediates the intellectual capital–organizational performance relationship and organizational inertia moderates the intellectual capital–organizational performance relationship. Theoretically, the findings contribute to the resource-based view (RBV) and knowledge-based view (KBV) by providing empirical evidence of the importance of distinctive internal resources in achieving superior organizational performance. Practically, the findings provide strategic information for managers that they should properly manage intellectual capital, open innovation and organizational inertia because of their effects on organizational performance.
Originality/value
First, this study addresses the previous research gaps by confirming that intellectual capital has a positive effect on organizational performance in the research setting of an emerging market. Second, by using a mediation research framework, this study shows that open innovation mediates the relationship between intellectual capital and organizational performance. Third, by using a moderating research framework, this study also reveals that organizational inertia weakens the relationship between intellectual capital and organizational performance. Those associations are rarely researched.
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Fatemeh Saeedi, Mahdi Salehi and Nour Mahmoud Yaghoubi
Financial reports are the basis of economic decisions that affect organizational interests and shareholders. However, there is a severe research gap concerning the factors…
Abstract
Purpose
Financial reports are the basis of economic decisions that affect organizational interests and shareholders. However, there is a severe research gap concerning the factors affecting the quality of financial information (such as audit report readability and tone). Therefore, considering the importance of presenting high-quality financial information, this study aims to investigate the impact of intellectual capital (IC) and its components on the audit report's readability and tone.
Design/methodology/approach
The multivariate regression model tests research hypotheses. Then, hypotheses are tested via a sample of 824 observations of the listed companies on the Tehran Stock Exchange (103 companies) from 2014 to 2021, using the multivariate regression model based on pooled data and fixed effects.
Findings
Results determine that customer capital (CC) and structural capital (SC) are likely to influence the audit report tone positively. In general, the IC and human capital (HC) negatively impact auditors' tone. More analyses also document that IC and its CC, HC and SC components positively and significantly affect audit report readability based on two readability indices, including FOG and text length. Finally, findings pertaining to the third readability index (Flesch index) reveal that only HC and SC are robust based on this measurement, whereas the IC and CC have a negative and significant impact on the readability of auditors’ reports.
Originality/value
To the best of the authors’ knowledge, this study is the first to address this issue in emerging markets, and it provides helpful insights for users, analysts and legal institutions regarding IC, which significantly affects audit report readability and tone.
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Mahdi Salehi, Raha Rajaeei, Ehsan Khansalar and Samane Edalati Shakib
This paper aims to determine whether there is a relationship between intellectual capital and social capital and internal control weaknesses and assess the relationship between…
Abstract
Purpose
This paper aims to determine whether there is a relationship between intellectual capital and social capital and internal control weaknesses and assess the relationship between the variables of intellectual capital and social capital and internal control weaknesses.
Design/methodology/approach
The statistical population consists of 1,309 firm-year observations from 2014 to 2020. The research hypothesis is tested using statistical methods, including multivariate, least-squares and fixed-effects regression.
Findings
The results demonstrate a negative and significant relationship between intellectual capital, social capital and internal control weaknesses. The study also finds that increased intellectual and social capital quality improves human resource utilization, control mechanism, creativity and firm performance. The results also show that intellectual capital and social capital enhancement will reduce internal control weaknesses in the upcoming years.
Originality/value
This paper is the pioneer study on the relationship between intellectual capital and social capital and internal control weaknesses in Iran, carried out separately and in exploratory factor analysis. This paper considers intellectual capital components for theoretical factor analysis, including human capital, structural capital and customer capital. Internal control weakness is assessed based on financial, non-financial and information technology (IT) weaknesses.
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Alkiviadis Karagiorgos, Grigorios Lazos, Antonios Stavropoulos, Dimitra Karagiorgou and Fani Valkani
This paper examines issues that focus on the importance of accounting data generated knowledge information and its role in modern business. The cognitive aspect of this research…
Abstract
Purpose
This paper examines issues that focus on the importance of accounting data generated knowledge information and its role in modern business. The cognitive aspect of this research reflects the ability of companies and its employees to apply knowledge for managerial purposes using accounting data.
Design/methodology/approach
Using a questionnaire, a five-factor model related to information communication, information cognitive utilization, functional optimization, applicability and cognitive efficiency was created.
Findings
Findings present a series of complex correlations highlighting possible actions to utilize knowledge as a tool for management. Information is obtained regarding the management of knowledge and the adoption of information systems.
Research limitations/implications
The results reflect the limited implementation of intellectual capital practices and understanding of knowledge as a financial tool for executives and employees. Based on the above, an attempt was made to formulate the questions for the careful identification of the factors.
Practical implications
Rapid developments in information and communication technologies, together with a realization that knowledge is a resource of general and cost strategic importance, changed the operational structures of companies, shifting value from materials to intangible assets. This paper demonstrates how multiple variables are correlated and how small changes could help increase intellectual capital and facilitate the construction of knowledge based systems.
Social implications
The need for an accounting valuation of intellectual capital in order to present the true picture of business value is evident. This paper illustrates factors such as interactive communication and systematic cognitive efficiency or the monetization of information as a preliminary step for future valuation and management intellectual capital models.
Originality/value
Direct access to sufficient and reliable information, lead to the search for effective tools for the creation, aggregation and exchange of knowledge. The latter becomes a key goal for information systems. Emphasis is placed on the benefits and critical success factors of knowledge management systems, as essential information systems to support and enhance organizational processes.
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Abhisheck Kumar Singhania and Nagari Mohan Panda
The study aims to investigate the mediation effect of the Audit Committee’s (AC) effectiveness on the relationship between knowledge intensity and firm performance (FP) by…
Abstract
Purpose
The study aims to investigate the mediation effect of the Audit Committee’s (AC) effectiveness on the relationship between knowledge intensity and firm performance (FP) by considering the disparate effect of each AC characteristic on its effectiveness.
Design/methodology/approach
The study uses the partial least squares-structural equation model (PLS-SEM) to weigh the AC characteristics for its effectiveness and analyzes the relationships between the variables included in the models. Data was collected from authentic sources for 133 National Stock Exchange (NSE)-listed companies in six industries covering the period 2016 to 2020.
Findings
The results indicate that eight out of eleven AC characteristics, namely, nonexecutive directors, independence, expertise, AC-charter, multiple directorships, frequency of AC meetings, attendance of AC meetings and board meetings by AC directors, significantly influence the AC effectiveness while mediating the relationship between knowledge intensity and FP. Further, each characteristic of AC has a disparate effect on AC effectiveness depending on the measurement context.
Research limitations/implications
Apart from guiding the policymakers, management and stakeholders to effectively use AC characteristics in enhancing FP, this study further contributes to the literature by providing a new way to weight AC characteristics based on their individual contributions; and exploring new path models to analyze the multidimensional effect of various AC characteristics.
Originality/value
To the best of the authors’ knowledge, the study is the first to examine the mediation role of AC effectiveness on the relationship between the knowledge intensity of the firms and their performance. It demonstrates improvisation in measuring AC effectiveness using the disparate weights for each AC characteristic, computed based on their relative contribution to AC effectiveness.
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Henri Hussinki, Tatiana King, John Dumay and Erik Steinhöfel
In 2000, Cañibano et al. published a literature review entitled “Accounting for Intangibles: A Literature Review”. This paper revisits the conclusions drawn in that paper. We also…
Abstract
Purpose
In 2000, Cañibano et al. published a literature review entitled “Accounting for Intangibles: A Literature Review”. This paper revisits the conclusions drawn in that paper. We also discuss the intervening developments in scholarly research, standard setting and practice over the past 20+ years to outline the future challenges for research into accounting for intangibles.
Design/methodology/approach
We conducted a literature review to identify past developments and link the findings to current accounting standard-setting developments to inform our view of the future.
Findings
Current intangibles accounting practices are conservative and unlikely to change. Accounting standard setters are more interested in how companies report and disclose the value of intangibles rather than changing how they are determined. Standard setters are also interested in accounting for new forms of digital assets and reporting economic, social, governance and sustainability issues and how these link to financial outcomes. The IFRS has released complementary sustainability accounting standards for disclosing value creation in response to the latter. Therefore, the topic of intangibles stretches beyond merely how intangibles create value but how they are also part of a firm’s overall risk and value creation profile.
Practical implications
There is much room academically, practically, and from a social perspective to influence the future of accounting for intangibles. Accounting standard setters and alternative standards, such as the Global Reporting Initiative (GRI) and European Union non-financial and sustainability reporting directives, are competing complementary initiatives.
Originality/value
Our results reveal a window of opportunity for accounting scholars to research and influence how intangibles and other non-financial and sustainability accounting will progress based on current developments.
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Syed Abidur Rahman, Seyedeh Khadijeh Taghizadeh, Golam Mostafa Khan and Malgorzata Radomska
The study aims to test the framework that proposes the role of resources (intellectual capital) in mobilizing entrepreneurial orientation that influences the competitiveness…
Abstract
Purpose
The study aims to test the framework that proposes the role of resources (intellectual capital) in mobilizing entrepreneurial orientation that influences the competitiveness improvement of micro-small-medium enterprises (MSMEs) under the lens of resource orchestration theory.
Design/methodology/approach
In this study, 347 respondents from the MSMEs participated through a structured questionnaire. For the data analysis purpose, the structural equation modeling technique was employed using SmartPLS software.
Findings
The results suggest human, structural, and relational capital are significant antecedents of entrepreneurial orientation, which leads to competitiveness improvement. The findings also indicate the mediation role of entrepreneurial orientation between intellectual capital and competitiveness improvement.
Practical implications
The current study presumably will supplement the promising research effort to progress the research orchestration theory and also could be a strategic guideline for the managers/owners of the MSMEs.
Originality/value
This study is possibly a novel attempt to divulge the association between intellectual capital (tripartite model) and competitiveness improvement of firms under the lens of resource orchestration theory.
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