IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i9p7332-d1135231.html
   My bibliography  Save this article

The Impact of Intellectual Capital on Service Firm Financial Performance in Emerging Countries: The Case of Vietnam

Author

Listed:
  • Nguyet Thi Nguyen

    (Vietnam Institute for Development Strategies—Ministry of Planning and Investment (MPI), Hanoi 10000, Vietnam)

Abstract

This paper evaluates the effect of intellectual capital (IC) on firm financial performance in the service sector in an emerging country, Vietnam. This research is dissimilar from earlier ones for the following reasons: (i) this is the first study of IC’s impact on service firms at different knowledge intensity levels, sizes, and ownerships in an emerging country, Vietnam; (ii) it expresses empirical evidence in details of service activities, particularly the research and development, financial, and technology services that play significant roles for the development of emerging countries; (iii) it examines the effects of the gender issue, firms’ responsiveness to the government and employees, and market concentration. Applying the two-step system GMM model for the period 2005–2014, the results express that IC components generally had significant impacts on firm performance. Human capital efficiency had the strongest positive impact while capital employed efficiency had the second strongest impact. The impact of structural capital efficiency was inconsistent, depending on the knowledge intensity levels and the types of service activities. IC is more efficient for knowledge-intensive sub-sectors than the less knowledge-intensive ones. IC efficiencies differ among knowledge intensity levels, sizes, and ownerships, suggesting that policy makers and firm leaders should implement corresponding solutions.

Suggested Citation

  • Nguyet Thi Nguyen, 2023. "The Impact of Intellectual Capital on Service Firm Financial Performance in Emerging Countries: The Case of Vietnam," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:9:p:7332-:d:1135231
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/9/7332/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/9/7332/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nasif Ozkan & Sinan Cakan & Murad Kayacan, 2017. "Intellectual capital and financial performance: A study of the Turkish Banking Sector," Borsa Istanbul Review, Research and Business Development Department, Borsa Istanbul, vol. 17(3), pages 190-198, September.
    2. Ikujiro Nonaka & Georg von Krogh, 2009. "Perspective---Tacit Knowledge and Knowledge Conversion: Controversy and Advancement in Organizational Knowledge Creation Theory," Organization Science, INFORMS, vol. 20(3), pages 635-652, June.
    3. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    4. Hasan Fauzi & Sami R.M. Musallam, 2015. "Corporate ownership and company performance: a study of Malaysian listed companies," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 11(3), pages 439-448, August.
    5. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    6. Janeth N. Isanzu, 2015. "Impact of Intellectual Capital on Financial Performance of Banks in Tanzania," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 1(1), pages 16-23, November.
    7. Znar Ahmed & Muhammad Rosni Amir Hussin & Kashan Pirzada, 2022. "The Impact of Intellectual Capital and Ownership Structure on Firm Performance," JRFM, MDPI, vol. 15(12), pages 1-15, November.
    8. Piermartini, Roberta, 2004. "The role of export taxes in the field of primary commodities," WTO Discussion Papers 4, World Trade Organization (WTO), Economic Research and Statistics Division.
    9. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    10. Rodriguez Castelan,Carlos & Lopez-Calva,Luis-Felipe & Barriga Cabanillas,Oscar Eduardo, 2020. "The Effects of Local Market Concentration and International Competition on Firm Productivity : Evidence from Mexico," Policy Research Working Paper Series 9210, The World Bank.
    11. Nicholas Asare & Abdul Latif Alhassan & Michael Effah Asamoah & Matthew Ntow-Gyamfi, 2017. "Intellectual capital and profitability in an emerging insurance market," Journal of Economic and Administrative Sciences, Emerald Group Publishing Limited, vol. 33(1), pages 2-19, May.
    12. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    13. George Saridakis & Kevin Mole & David Storey, 2008. "New small firm survival in England," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 35(1), pages 25-39, March.
    14. A.A. Ousama & A.H. Fatima, 2015. "Intellectual capital and financial performance of Islamic banks," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 12(1), pages 1-15.
    15. David Roodman, 2006. "How to Do xtabond2," North American Stata Users' Group Meetings 2006 8, Stata Users Group.
    16. Nguyen Thi Nguyet, 2016. "Survival of new private enterprises in transition economies: The case of Vietnam," Society and Economy, Akadémiai Kiadó, Hungary, vol. 38(1), pages 47-67, March.
    17. Hasan Fauzi & Sami R.M. Musallam, 2015. "Corporate ownership and company performance: a study of Malaysian listed companies," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 11(3), pages 439-448, August.
    18. S Firer & S M Williams, 2005. "Firm ownership structure and intellectual capital disclosures," South African Journal of Accounting Research, Taylor & Francis Journals, vol. 19(1), pages 1-18, January.
    19. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fabbri, Francesca & Marin, Dalia, 2012. "What explains the rise in CEO pay in Germany? A Panel Data Analysis for 1977-2009," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 374, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    2. Zheng, Xinye & Li, Fanghua & Song, Shunfeng & Yu, Yihua, 2013. "Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach," China Economic Review, Elsevier, vol. 27(C), pages 264-276.
    3. Holger Zemanek & Ansgar Belke & Gunther Schnabl, 2009. "Current Account Imbalances and Structural Adjustment in the Euro Area: How to Rebalance Competitiveness," Discussion Papers of DIW Berlin 895, DIW Berlin, German Institute for Economic Research.
    4. Alexander Klemm & Stefan Parys, 2012. "Empirical evidence on the effects of tax incentives," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 19(3), pages 393-423, June.
    5. Jing Li & Tsun Se Cheong & Jianfa Shen & Dahai Fu, 2019. "Urbanization And Rural–Urban Consumption Disparity: Evidence From China," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(04), pages 983-996, September.
    6. Meschi, Elena & Taymaz, Erol & Vivarelli, Marco, 2011. "Trade, technology and skills: Evidence from Turkish microdata," Labour Economics, Elsevier, vol. 18(S1), pages 60-70.
    7. Mahabubur Rahman & M. Ángeles Rodríguez-Serrano & Mary Lambkin, 2019. "Brand equity and firm performance: the complementary role of corporate social responsibility," Journal of Brand Management, Palgrave Macmillan, vol. 26(6), pages 691-704, November.
    8. Mohanty, Biswajit & Bhanumurthy, N. R. & Dastidar, Ananya Ghosh, 2017. "What explains Regional Imbalances in Infrastructure?: Evidence from Indian States," Working Papers 17/197, National Institute of Public Finance and Policy.
    9. Matjaž Volk & Polona Trefalt, 2014. "Access to Credit as a Growth Constraint," Journal of Banking and Financial Economics, University of Warsaw, Faculty of Management, vol. 1(1), pages 29-39, May.
    10. Deodat E. Adenutsi & Meshach J. Aziakpono & Matthew K. Ocran, 2011. "The Changing Impact Of Macroeconomic Environment On Remittance Inflows In Sub-Saharan Africa," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 3(2 (July)), pages 136-167.
    11. Andrés Rodríguez-Pose, 2012. "Trade and Regional Inequality," Economic Geography, Taylor & Francis Journals, vol. 88(2), pages 109-136, April.
    12. Elif Acar & Gamze Vural & Emin Hüseyin Çetenak, 2020. "Evidence for Financial Hierarchy Theory in Capital Structure Decisions: Data from BIST Companies," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 34(1), pages 29-50.
    13. Jean-Pierre Allegret & Sana Azzabi, 2014. "Intégration financière internationale et croissance économique dans les pays émergents et en développement : le canal du développement financier," Revue d’économie du développement, De Boeck Université, vol. 22(3), pages 27-68.
    14. Möller Joachim & Tubadji Annie, 2009. "The Creative Class, Bohemians and Local Labor Market Performance: A Micro-data Panel Study for Germany 1975–2004," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(2-3), pages 270-291, April.
    15. repec:hal:spmain:info:hdl:2441/o45fqtltm960r11iq437ski90 is not listed on IDEAS
    16. Henriques, Irene & Sadorsky, Perry, 2011. "The effect of oil price volatility on strategic investment," Energy Economics, Elsevier, vol. 33(1), pages 79-87, January.
    17. Nguyen Phuc Canh & Nguyen Thanh Binh & Su Dinh Thanh & Christophe Schinckus, 2020. "Determinants of foreign direct investment inflows: The role of economic policy uncertainty," International Economics, CEPII research center, issue 161, pages 159-172.
    18. Efe Can KILINÇ & Cafer Necat BERBEROĞLU, 2019. "The Relationship Between Saving, Profit Rates and Business CyclesAbstract:There are different approaches of economics schools on the sources, causes and determinants of business cycles. These approach," Sosyoekonomi Journal, Sosyoekonomi Society.
    19. Shao, Shuai & Yang, Lili & Yu, Mingbo & Yu, Mingliang, 2011. "Estimation, characteristics, and determinants of energy-related industrial CO2 emissions in Shanghai (China), 1994-2009," Energy Policy, Elsevier, vol. 39(10), pages 6476-6494, October.
    20. Vusal Musayev, 2016. "Externalities in Military Spending and Growth: The Role of Natural Resources as a Channel through Conflict," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(3), pages 378-391, June.
    21. Thumrongvit, Patara & Kim, Yoonbai & Pyun, Chong Soo, 2013. "Linking the missing market: The effect of bond markets on economic growth," International Review of Economics & Finance, Elsevier, vol. 27(C), pages 529-541.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:9:p:7332-:d:1135231. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.