Intellectual capital as the essence of sustainable corporate performance

The term 'intellectual capital' (IC) may sound unfamiliar to the wider public. However, IC has started to cast greater attention in the corporate world. IC refers to intangible asset which is closely related with the development of strategic decision and corporate performance. With endless...

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Main Authors: Abdullah, Dewi Fariha, Sofian, Saudah, Bajuri, Norkhairul Hafiz
Format: Article
Published: Universiti Putra Malaysia 2015
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Online Access:http://eprints.utm.my/id/eprint/55993/
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spelling my.utm.559932017-02-15T00:45:18Z http://eprints.utm.my/id/eprint/55993/ Intellectual capital as the essence of sustainable corporate performance Abdullah, Dewi Fariha Sofian, Saudah Bajuri, Norkhairul Hafiz HD28 Management. Industrial Management The term 'intellectual capital' (IC) may sound unfamiliar to the wider public. However, IC has started to cast greater attention in the corporate world. IC refers to intangible asset which is closely related with the development of strategic decision and corporate performance. With endless challenging business environment and complicated electronic transactions, IC is argued to act as a vital essence for a business to innovate which then drives business sustainability. The ultimate purpose of this study was to investigate whether IC is acknowledged and managed towards improving performance, be it financial or non-financial performance. For this purpose, a questionnaire survey was distributed to the head of internal audit of Malaysian public listed companies. Questions tapping on core IC components including human capital, structural capital, relational capital and spiritual capital were included. Data were analysed using inference analysis methods, including ANOVA, t-test and regression. Findings revealed that IC does exist, but not much of IC management is sought in the companies, although the practice is in place. The results also demonstrate that relational capital emerged as the most influential IC component on corporate performance, while human capital ranked the last. This is an obvious indication that IC is well in fact has developed within Malaysian companies and become an important source for business performance. Universiti Putra Malaysia 2015-05 Article PeerReviewed Abdullah, Dewi Fariha and Sofian, Saudah and Bajuri, Norkhairul Hafiz (2015) Intellectual capital as the essence of sustainable corporate performance. Pertanika Journal of Social Science and Humanities, 23 . pp. 131-144. ISSN 0128-7702
institution Universiti Teknologi Malaysia
building UTM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Malaysia
content_source UTM Institutional Repository
url_provider http://eprints.utm.my/
topic HD28 Management. Industrial Management
spellingShingle HD28 Management. Industrial Management
Abdullah, Dewi Fariha
Sofian, Saudah
Bajuri, Norkhairul Hafiz
Intellectual capital as the essence of sustainable corporate performance
description The term 'intellectual capital' (IC) may sound unfamiliar to the wider public. However, IC has started to cast greater attention in the corporate world. IC refers to intangible asset which is closely related with the development of strategic decision and corporate performance. With endless challenging business environment and complicated electronic transactions, IC is argued to act as a vital essence for a business to innovate which then drives business sustainability. The ultimate purpose of this study was to investigate whether IC is acknowledged and managed towards improving performance, be it financial or non-financial performance. For this purpose, a questionnaire survey was distributed to the head of internal audit of Malaysian public listed companies. Questions tapping on core IC components including human capital, structural capital, relational capital and spiritual capital were included. Data were analysed using inference analysis methods, including ANOVA, t-test and regression. Findings revealed that IC does exist, but not much of IC management is sought in the companies, although the practice is in place. The results also demonstrate that relational capital emerged as the most influential IC component on corporate performance, while human capital ranked the last. This is an obvious indication that IC is well in fact has developed within Malaysian companies and become an important source for business performance.
format Article
author Abdullah, Dewi Fariha
Sofian, Saudah
Bajuri, Norkhairul Hafiz
author_facet Abdullah, Dewi Fariha
Sofian, Saudah
Bajuri, Norkhairul Hafiz
author_sort Abdullah, Dewi Fariha
title Intellectual capital as the essence of sustainable corporate performance
title_short Intellectual capital as the essence of sustainable corporate performance
title_full Intellectual capital as the essence of sustainable corporate performance
title_fullStr Intellectual capital as the essence of sustainable corporate performance
title_full_unstemmed Intellectual capital as the essence of sustainable corporate performance
title_sort intellectual capital as the essence of sustainable corporate performance
publisher Universiti Putra Malaysia
publishDate 2015
url http://eprints.utm.my/id/eprint/55993/
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score 12.925488