Item – Theses Canada

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OCLC number
806535439
Link(s) to full text
LAC copy
LAC copy
Author
Nazari, Jamal Aldin.
Title
An investigation of the relationship between the intellectual capital components and firm's financial performance.
Degree
Ph. D. -- University of Calgary, 2010
Publisher
Ottawa : Library and Archives Canada = Bibliothèque et Archives Canada, [2011]
Description
2 microfiches
Notes
Includes bibliographical references.
Abstract
In the knowledge economy, intellectual capital has become one of the primary sources of competitive advantage for a firm. Given the remarkable shift in the underlying production factors of a business within the new knowledge economy, it is important for firms to be aware of the elements of intellectual capital that would lead to value creation. Building upon knowledge based view of the firm, my study aims to explore and recognize the relationship between components of intellectual capital and a company's financial success. My research offers a unique contribution by linking two disparate fields in the intellectual capital literature: components of intellectual capital and a firm's financial success. The data for the current study has been obtained from archival sources. I used a secondary archival database, Research Insight, in order to collect data on variables of interest. The sample includes 775 firm-year observations from 1996 to 2006. Based on the research objectives, I have used six variables: three variables to measure IC, and three variables to measure financial performance. Initial data analyses were conducted through SPSS. The hypothesized model was then tested using Structural Equation Modeling (SEM). Maximum likelihood estimation from LISREL 8.4 was used to determine the model estimates. The results of my study add to the body of literature by providing additional evidence on the interconnection of IC components. The empirical results showed that human capital is positively and significantly associated with structural capital. Furthermore, I found a positive significant relationship between human capital and firm's financial performance. Finally, the results did not provide evidence for a positive relationship between structural capital and firm's financial performance. What has been documented in this study is that investment in organizational structures and databases, computer software, and increased advertising, in themselves, might not necessarily lead to improved financial performance. Furthermore, better output variables of structural capital need to be used, but are not yet available in the current disclosures in financial statements. However, the value of IC might be realized through the interaction of structural capital and human capital as these two components are highly correlated.
ISBN
9780494694954
0494694955