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Author
Smuda-Kocoń Marlena (University of Economics in Katowice, Poland)
Title
The Causal Relationship Between Intellectual Capital and Financial Performance
Source
Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska, 2022, z. 163, s. 535-548, bibliogr. 59 poz.
Keyword
Kapitał intelektualny, Przyczynowość, Wynik finansowy, Zarządzanie kapitałem ludzkim
Intellectual capital, Causality, Financial performance, Human Capital Management
Note
summ.
Abstract
Purpose: The purpose of this article is to present a synthesis of the existing body of research on intellectual capital (IC) as an interdependent construct, correlative with other economic categories, and to identify the trend in the causal relationships between intellectual capital and these economic categories. A precise identification of these causal relationships is gaining particular importance during the periods of discontinuity and instability, and the identified regularities in this regard should be perceived as the source of development of the intellectual capital management theory. Design/methodology/approach: The paper is the result of a literature review and text analysis of papers indexed in the Web of Science database and published during the years 2000-2022. Findings: Model approaches to the causal relationships between intellectual capital and the economic performance of companies justify the need to develop a research on the intellectual capital across different industries. Neither theoretical reasoning nor empirical solutions, obtained thus far in this area, have been unambiguous in the manner we would expect. While the results of the research indicate that, irrespective of the affiliations to particular industrial sectors, a positive causal relationship may be observed between intellectual capital and the financial situation of companies, it is but difficult to make any broader generalisations, as the research underway focuses, first of all, on stock-listed companies in the financial sector, high-tech enterprises and entities in the pharmaceutical sector. It may then be assumed that regional, national and sectoral circumstances are not without influence on the development of the relationships studied at companies of other industries as well. Research limitations: Regarding unlisted companies, the issue of diagnosing a causal relationship among the variables under study eludes scientific explanation. Limitations in this respect may often be derived from the method used to measure intellectual capital. It is rather difficult to make a firm, unambiguous conclusion, taking into account merely some snapshots from the survey of organisations in a few industries only. The possibility to explore the causal relationships, which occur between intellectual capital and the financial situation of small enterprises or non-profit organisations requires the development of methods of valuation and assessment of intellectual capital, customised to their specific characteristics. Practical implications: The Value Added Intellectual Coefficient method can be used as an important tool by the decision makers in the knowledge economy to integrate the intellectual capital in the decision making process. Originality/value: Both the existing regularities and the established facts should be perceived as the sources for the development of the theory of intellectual capital management, particularly in relation to stock-listed companies. A synthesis of the intellectual capital research output shows that changes in the research structure and in the operationalisation of variables result in differentiated outcomes.(original abstract)
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ISSN
1641-3466
Language
eng
URI / DOI
http://dx.doi.org/10.29119/1641-3466.2022.163.33
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