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Intellectual Capital and a Firm’s Sustainable Performance and Growth before and during the COVID-19 Crisis: A Comparative Analysis of Small and Large European Hospitality Firms

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  • Sumaira Ashraf

    (ISAL, Higher Institute of Administration and Languages, 9050-053 Funchal, Portugal
    Center for Advanced Studies in Management and Economics, Palácio do Vimioso, Largo Marquês de Marialva, 8, 7000-809 Évora, Portugal
    Faculty of Social Sciences, University of Madeira, 9020-105 Funchal, Portugal)

  • Misbah Sadiq

    (College of Business Administration, Umm Al Quwain University, Umm Al Quwain 536, United Arab Emirates)

  • Paulo Ferreira

    (Center for Advanced Studies in Management and Economics, Palácio do Vimioso, Largo Marquês de Marialva, 8, 7000-809 Évora, Portugal
    VALORIZA—Research Center for Endogenous Resource Valorization, 7300-555 Portalegre, Portugal
    Department of Economic Sciences and Organizations, Polytechnic Institute of Portalegre, 7300-555 Portalegre, Portugal)

  • António Martins Almeida

    (Faculty of Social Sciences, University of Madeira, 9020-105 Funchal, Portugal)

Abstract

This study explores the critical role of intellectual capital (IC) in ensuring the sustainable performance and growth of European hospitality firms, both large and small, during the unprecedented COVID-19 crisis. Based on an extensive analysis of data from 42,516 accommodation, food, and travel sector firms operating in 18 EU countries during 2012–2021, this research provides crucial insights into the differential impacts of human, structural, and relational IC on profitability and asset growth. The results show that human IC positively affects SMEs’ profitability, while relational IC benefits both small and large firms. On the other hand, structural IC negatively impacted asset growth for both SMEs and large firms before the crisis but had no impact during the crisis. This study offers crucial insights for policymakers, investors, and business leaders alike, emphasizing the importance of investing in human and relational IC as key drivers of sustainable growth and profitability in the hospitality industry. The findings of this study will help firms better navigate the challenges and uncertainties of crises, such as COVID-19, ensuring their long-term viability and success.

Suggested Citation

  • Sumaira Ashraf & Misbah Sadiq & Paulo Ferreira & António Martins Almeida, 2023. "Intellectual Capital and a Firm’s Sustainable Performance and Growth before and during the COVID-19 Crisis: A Comparative Analysis of Small and Large European Hospitality Firms," Sustainability, MDPI, vol. 15(12), pages 1-18, June.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:12:p:9743-:d:1174058
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