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Value creation during fourth industrial revolution: Use of intellectual capital by most innovative companies of the world

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  • Li, Xin
  • Nosheen, Safia
  • Haq, Naveed Ul
  • Gao, Xue

Abstract

This study investigates the impact that intellectual capital (IC) and value creation have on a firm's performance, in relation to the leading innovative firms in the world, at the start of the Fourth Industrial Revolution. An analysis is based on the top 100 innovative companies from different countries and sectors, as indexed by Forbes in 2016, for the period between 2011 and 2015, by using the pooled OLS regression model. The Fourth Industrial Revolution characterizes the fusion of technologies, and is blurring the boundaries between physical, digital, and biological spheres. The study reveals that capital employed efficiency and human capital efficiency have a significant positive impact on a firm's performance, whereas, the relational capital efficiency and structural capital efficiency are not related to it. Findings also suggest that relational capital efficiency is positively related to the value creation of innovative firms, while all the other mechanisms of intellectual capital and Modified Value-Added IC (MVAIC), are not associated with the value creation of innovative companies. The study advocates that innovation policies are critical, and require a rigorous review from the top management in order to meet the challenges of the Fourth Industrial Revolution, that is heavily innovation-based, and requires overwhelmingly new competencies.

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  • Li, Xin & Nosheen, Safia & Haq, Naveed Ul & Gao, Xue, 2021. "Value creation during fourth industrial revolution: Use of intellectual capital by most innovative companies of the world," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    • Handle: RePEc:eee:tefoso:v:163:y:2021:i:c:s0040162520313056
    DOI: 10.1016/j.techfore.2020.120479
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    1. Cannavacciuolo, Lorella & Ferraro, Giovanna & Ponsiglione, Cristina & Primario, Simonetta & Quinto, Ivana, 2023. "Technological innovation-enabling industry 4.0 paradigm: A systematic literature review," Technovation, Elsevier, vol. 124(C).
    2. Nikita A. Tolstov & Andrey A. Knyazev, 2024. "Influence of Top Management Characteristics on the Innovative Development of the World’s Top Companies in the Pharmaceutical Industry," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 23(3), pages 855-875.
    3. Guangchun Jin & Jian Xu, 2022. "Does Intellectual Capital Affect Financial Leverage of Chinese Agricultural Companies? Exploring the Role of Firm Profitability," Sustainability, MDPI, vol. 14(5), pages 1-14, February.
    4. Ahmed Jinjiri Bala & Aminu Hassan & Muhammad Liman Muhammad, 2024. "Do board characteristics matter in the relationship between intellectual capital efficiency and firm value? Evidence from the Nigerian oil and gas downstream sector," Future Business Journal, Springer, vol. 10(1), pages 1-24, December.
    5. Kusi-Sarpong, Simonov & Mubarik, Muhammad Shujaat & Khan, Sharfuddin Ahmed & Brown, Steve & Mubarak, Muhammad Faraz, 2022. "Intellectual capital, blockchain-driven supply chain and sustainable production: Role of supply chain mapping," Technological Forecasting and Social Change, Elsevier, vol. 175(C).

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