ISSN: 2225-8329
Open access
This study seeks to explore the relation between intellectual capital, dynamic capability and firm performance within an emerging market environment, ASEAN. In order to evaluate the moderating role of dynamic capability in the link between intellectual capital and performance, we examine first the effect of intellectual capital and dynamic capability consisting of research and development and marketing capability on firm performance. A sample of ASEAN countries (Indonesia, Malaysia, the Philippines and Singapore) non-financial companies during 2018-2020, is utilized for Panel data regression model’s study. A total of 327 observations constitutes the final sample used in this study. The results demonstrated a positive impact of IC on the performance of companies. This result showed that intellectual capital may provide companies with greater financial success. The relation between dynamic capability, which is research and development capability and marketing capability towards performance is also positive. Meanwhile, the positive relation between intellectual capital and corporate financial performance may be moderated by dynamic capabilities, which are research and development capabilities, as well as marketing capabilities. This conclusion suggests the use and maintenance of intellectual capital by companies together with their dynamic capabilities, research and development and marketing capabilities.
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. In Journal of Management (Vol. 17, Issue 1, pp. 99–120).
https://doi.org/10.1177/014920639101700108
Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. In Journal of Management (Vol. 17, Issue 1, pp. 99–120).
https://doi.org/10.1177/014920639101700108
Barney, J. B., Ketchen, D. J., & Wright, M. (2011). The Future of Resource-Based Theory: Revitalization or Decline? Journal of Management, 37(5), 1299–1315. https://doi.org/10.1177/0149206310391805
Blonigen, B. A., & Taylor, C. T. (2000). R&D Intensity and Acquisitions in High-Technology Industries: Evidence from the US Electronic and Electrical Equipment Industries. The Journal of Industrial Economics, 48(1), 47–70.
Bontis, N. (2001). Assessing knowledge assets: A review of the models used to measure intellectual capital. International Journal of Management Reviews, 3(1), 41–60. https://doi.org/10.1111/1468-2370.00053
Chan, K. H. (2009). Impact of intellectual capital on organisational performance: An empirical study of companies in the Hang Seng Index (Part 1). The Learning Organization, 16(1), 4–21.
Chen, M.-C., Cheng, S.-J., & Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. Journal of Intellectual Capital, 6(2), 159–176.
Cinintya Pratama, B., & Wibowo, H. (2017). Family ownership and Entrenchment Effect on Intellectual Capital Utilization: Study on High-Technology Companies in Indonesia in Facing Asean Economic Community (AEC) ,. Jurnal Akuntansi Dan Investasi, 18(2), 222–230. https://doi.org/10.18196/jai.1802585
Clarke, M., Seng, D., & Whiting, R. H. (2011). Intellectual capital and firm performance in Australia. Journal of Intellectual Capital, 12(4), 505–530.
Deeds, D. L., & Hill, C. W. L. (1999). An examination of opportunistic action within research alliances. Journal of Business Venturing, 14(2), 141–163. https://doi.org/10.1016/s0883-9026(97)00069-4
Dutta, S., Narasimhan, O., & Rajiv, S. (2005). Conceptualizing and measuring capabilities: Methodology and empirical application. Strategic Management Journal, 26(3), 277–285. https://doi.org/10.1002/smj.442
Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74. https://doi.org/10.1159/000169659
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic Capabilities: What are They? Strategic Management Journal, 21(10/11), 1105–1121. http://www.jstor.org/stable/3094429
Firer, S., & Stainbank, L. (2003). Testing the relationship between intellectual capital and a company’s performance: Evidence from South Africa. Meditari Accountancy Research, 11(1), 25–44. https://doi.org/10.1108/10222529200300003
Firer, Steven, & Mitchell Williams, S. (2003). Intellectual capital and traditional measures of corporate performance. Journal of Intellectual Capital, 4(3), 348–360. https://doi.org/10.1108/14691930310487806
Firer, Steven, & Stainbank, L. (2003). Testing the relationship between intellectual capital and a company’s performance: Evidence from South Africa. Meditari Accountancy Research, 11(1), 25–44. https://doi.org/10.1108/10222529200300003
Grant, R. M. (1991). The Resource-Based Theory ofCompetitive Advantage: Implications for Strategy Formulation. California Management Review, 33, 114–135.
Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(2), 109–122. https://doi.org/10.1002/smj.4250171110
Griffith, D. a, & Harvey, M. G. (2001). A Resource Perspective of Global Dynamic Capabilities. Journal of International Business Studies, 32(3), 597–606.
Helfat, C. E. (1997). Know-how and asset complementarity and dynamic capability accumulation: The case of R&D. Strategic Management Journal, 18(5), 339–360. https://doi.org/10.1002/(SICI)1097-0266(199705)18:5<339::AID-SMJ883>3.0.CO;2-7
Hermans, R., & Kauranen, I. (2005). Value creation potential of intellectual capital in biotechnology - Empirical evidence from Finland. R&D Management, 35(2), 171–185. https://doi.org/10.1111/j.1467-9310.2005.00381.x
Hunt, S. D., & Morgan, R. M. (1995). Relationship marketing in the era of network competition. Marketing Management, 3, 19–28.
Kor, Y. Y., & Mahoney, J. T. (2005). How dynamics, management, and governance of resource deployments influence firm-level performance. Strategic Management Journal, 26(5), 489–496. https://doi.org/10.1002/smj.459
Kozlenkova, I. V., Samaha, S. A., & Palmatier, R. W. (2014). Resource-based theory in marketing. Journal of the Academy of Marketing Science, 42(1), 1–21. https://doi.org/10.1007/s11747-013-0336-7
Krishna, H. A., Tadepalil, R., & Park, D. (2009). R&D Intensity, Marketing Intensity, and Organizational Performance. Journal of Managerial Issues, 21(2), 232–244.
Krishnan, H. A., & Park, D. (2005). A few good women - On top management teams. Journal of Business Research, 58(12), 1712–1720. https://doi.org/10.1016/j.jbusres.2004.09.003
Lantz, J., & Sahut, J. (2005). R&D Investment and the Financial Performance of Technological Firms. International Journal of Business, 10(3), 252–270.
Ntim, C. G., Soobaroyen, T., & Broad, M. J. (2017). Governance structures, voluntary disclosures and public accountability: The case of UK higher education institutions. Accounting, Auditing and Accountability Journal, 30(1), 65–118. https://doi.org/10.1108/AAAJ-10-2014-1842
Peteraf, M. A., & Barney, J. B. (2003). Unraveling The Resource-Based Tangle. Managerial and Decision Economics, 24(4), 309–323. https://doi.org/10.1002/mde.1126
Pike, S., Roos, G., & Marr, B. (2005). Strategic management of intangible assets and value drivers in R&D organizations. R&D Management, 35(2), 111–124. https://doi.org/10.1111/j.1467-9310.2005.00377.x
Pratama, B. C. (2016). The Impact of Intellectual Capital of Indonesian’s High-Tech Company on Firm’s Financial and Market Performance. International Journal of Academic Research in Accounting, 6(4), 73–81. https://doi.org/10.6007/IJARAFMS/v6-i4/2296
Pratama, B. C., Sasongko, K. M., & Innayah, M. N. (2020). Sharia Firm Value: The Role of Enterprise Risk Management Disclosure, Intellectual Capital Disclosure, and Intellectual Capital. Shirkah: Journal of Economics and Business, 5(1), 101. https://doi.org/10.22515/shirkah.v5i1.302
Pratama, B. C., & Wibowo, H. (2017). Family ownership and Entrenchment Effect on Intellectual Capital Utilization: Study on High-Technology Companies in Indonesia in Facing Asean Economic Community (AEC). Jurnal Akuntansi Dan Investasi, 18(2), 222–230. https://doi.org/10.18196/jai.1802585
Pulic, A. (2000). VAICTM – An Accounting Tool for Intellectual Capital Management. International Journal Technology Management, 20(5/6/7/8), 702–714.
Pulic, A. (2004). Intellectual capital – does it create or destroy value? Measuring Business Excellence, 8(1), 62–68. https://doi.org/10.1108/13683040410524757
Rauyruen, P., & Miller, K. E. (2007). Relationship quality as a predictor of B2B customer loyalty. Journal of Business Research, 60(1), 21–31. https://doi.org/10.1016/j.jbusres.2005.11.006
Szulanski, G. (1996). Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic Management Journal, 17(SUPPL. WINTER), 27–43. https://doi.org/10.1002/smj.4250171105
Tan, H. P., Plowman, D., & Hancock, P. (2007). Intellectual capital and financial returns of companies. Journal of Intellectual Capital, 8(1), 76–95.
Teece, D. J. (1998). Capturing Value From Knowledge Assets: The New Economy,Markets For Know-How, And Intangible Assets. California Management Review, VOL. 40(No. 3), 55–79.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1057/978-1-349-94848-2_689-1
Teece, D., & Pisano, G. (1994). The dynamic capabilities of firms: An introduction. Industrial and Corporate Change, 3(3), 537–556. https://doi.org/10.1093/icc/3.3.537-a
Thornhill, S. (2006). Knowledge, innovation and firm performance in high- and low-technology regimes. Journal of Business Venturing, 21(5), 687–703. https://doi.org/10.1016/j.jbusvent.2005.06.001
Wang, J.-C. (2008). Investigating market value and intellectual capital for S&P500. Journal of Intellectual Capital, 9(4), 546–563. https://doi.org/http://dx.doi.org/10.1108/MRR-09-2015-0216
Zajac, E. J., Kraatz, M. S., & Bresser, R. K. F. (2000). Modeling the Dynamics of Strategic Fit?: A Normative Approach to Strategic Change. Strategic Management Journal, 21(4), 429–453.
In-Text Citation: (Pratama et al., 2021)
To Cite this Article: Pratama, B. C., Setyadi, E. J., & Innayah, M. N. (2021). Intellectual Capital and Firm Financial Performance in ASEAN: The Role of Dynamic Capability. International Journal of Academic Research in Accounting Finance and Management Sciences, 11(3), 256–270.
Copyright: © 2021 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode