IDEAS home Printed from https://ideas.repec.org/a/hig/fsight/v11y2017i1p31-40.html
   My bibliography  Save this article

Intellectual Capital and Its Impact on the Financial Performance of Russian Manufacturing Companies

Author

Listed:
  • Tatiana Andreeva

    (Maynooth University (Ireland))

  • Tatiana Garanina

    (St. Petersburg University (Russian Federation))

Abstract

Intellectual Capital (IC) has been argued to be the key element of value creation in the contemporary economy. According to the results obtained in [Molnar, 2004] in the 1980s the share of tangible assets accounted for about 62% of market capitalization of companies on developed markets. However, by the start of the 2000s, their share fell to 16%. This has been widely supported by empirical research, but mainly based on the data from developed markets. The questions of how IC and its elements work on emerging markets remains under-researched due to a lack of empirical research devoted to this topic. The aim of the study is to provide empirical insight into the relationship between three main elements of IC (human, relational and organisational) and organisational performance of Russian companies, such as asset profitability, net sales growth and market share. The sample includes 240 Russian companies. Information about different elements of intellectual capital has been gathered with the help of a questionnaire that has been answered by the executive management of the companies included in the sample over the course of January-March 2015. The data is collected with the survey using the scales that have been already internationally. The findings based on regression analysis demonstrate that structural and human capital positively influence organisational performance, while relational capital does not. We can assume that the results that we obtained can be explained by the specific features of the analyzed industries. For manufacturing companies the organizational structure and the effectiveness of internal processes play a much more important role in company value creation than relations with customers and other stakeholders. The core managerial implication of this study is that building the structural capital, providing employees with efficient and relevant information systems and tools to support cooperation between employees, as well as carefully documenting organizational knowledge and making it easily accessible for employees, should be in the focus of the managers of manufacturing companies. The concept of IC management in our article is developed within the international context and focuses on emerging markets. At the end of the paper, the main areas for further research are presented.

Suggested Citation

  • Tatiana Andreeva & Tatiana Garanina, 2017. "Intellectual Capital and Its Impact on the Financial Performance of Russian Manufacturing Companies," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 11(1), pages 31-40.
    • Handle: RePEc:hig:fsight:v:11:y:2017:i:1:p:31-40
    as

    Download full text from publisher

    File URL: https://foresight-journal.hse.ru/data/2017/03/28/1169885566/3-Garanina-31-40.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Sydler, Renato & Haefliger, Stefan & Pruksa, Robert, 2014. "Measuring intellectual capital with financial figures: Can we predict firm profitability?," European Management Journal, Elsevier, vol. 32(2), pages 244-259.
    2. Kira Kristal Reed & Michael Lubatkin & Narasimhan Srinivasan, 2006. "Proposing and Testing an Intellectual Capital‐Based View of the Firm," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 867-893, June.
    3. Snejina Michailova & Kate Hutchings, 2006. "National Cultural Influences on Knowledge Sharing: A Comparison of China and Russia," Journal of Management Studies, Wiley Blackwell, vol. 43(3), pages 383-405, May.
    4. Jaani Vaisanen & Paula Kujansivu & Antti Lonnqvist, 2007. "Effects of intellectual capital investments on productivity and profitability," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 4(4), pages 377-391.
    5. Volkov, Dmitry L. & Garanina, Tatiana A., 2007. "Intellectial capital valuation: Case of Russian companies," Working Papers 857, Graduate School of Management, St. Petersburg State University.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Angi Skhvediani & Anastasia Koklina & Tatiana Kudryavtseva & Diana Maksimenko, 2023. "The Impact of Intellectual Capital on the Firm Performance of Russian Manufacturing Companies," Risks, MDPI, vol. 11(4), pages 1-25, April.
    2. Lujing Liu & Jiyue Zhang & Jian Xu & Yiqun Wang, 2022. "Intellectual Capital and Financial Performance of Chinese Manufacturing SMEs: An Analysis from the Perspective of Different Industry Types," Sustainability, MDPI, vol. 14(17), pages 1-17, August.
    3. Salim Muhammad OGAJI, 2019. "Employees’ Competence And Business Performance: A Study Of Selected Hotels In Keffi," Business Excellence and Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(4), pages 5-17, December.
    4. Putri, Indah Ayu Johanda, 2023. "Growth, Intellectual Capital, Financial Performance And Firm Value : Evidence From Indonesia Automotive Firms," OSF Preprints z53mf, Center for Open Science.
    5. Carlos M. Jardon & Xavier Martinez Cobas, 2023. "Emerging economies and investment in intellectual capital in crisis time: The case of Russia," Russian Journal of Economics, ARPHA Platform, vol. 9(1), pages 57-70, April.
    6. Nadezhda N. Pokrovskaia & Olga N. Korableva & Lucio Cappelli & Denis A. Fedorov, 2021. "Digital Regulation of Intellectual Capital for Open Innovation: Industries’ Expert Assessments of Tacit Knowledge for Controlling and Networking Outcome," Future Internet, MDPI, vol. 13(2), pages 1-28, February.

    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. Anna Maria Biscotti & Eugenio D’Amico, 2019. "Does Equity Market Differently Perceive IC Management and Disclosure Behaviours?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 756-775, June.
    2. Yongfu Li & Yu Song & Jinxin Wang & Chengwei Li, 2019. "Intellectual Capital, Knowledge Sharing, and Innovation Performance: Evidence from the Chinese Construction Industry," Sustainability, MDPI, vol. 11(9), pages 1-20, May.
    3. Meijerink, Jeroen & Bondarouk, Tanya, 2018. "Uncovering configurations of HRM service provider intellectual capital and worker human capital for creating high HRM service value using fsQCA," Journal of Business Research, Elsevier, vol. 82(C), pages 31-45.
    4. Sakinah Mat Zin & Ahmad Azrin Adnan & Iskandar Hasan Abdullah, 2017. "How Can Ibn Khaldun’s Economic Philosophy Revive the Intellectual Capital of Entrepreneurs," Asian Social Science, Canadian Center of Science and Education, vol. 13(6), pages 164-164, June.
    5. Ortiz García Navas, Beatriz & Donate Manzanares, Mario Javier & Guadamillas Gómez, Fátima, 2019. "Social capital as a theoretical approach in Strategic Management," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    6. Wilder Quintero-Quintero & Ana Beatriz Blanco-Ariza & Manuel Alfonso Garzón-Castrillón, 2021. "Intellectual Capital: A Review and Bibliometric Analysis," Publications, MDPI, vol. 9(4), pages 1-23, October.
    7. Enzo Bivona, 2014. "Outlining the impact of intellectual capital accumulation and depletion processes on the performance of an insurance firm: a dynamic resource-based perspective," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2014(2), pages 71-93.
    8. Samul Joanna & Skapska Elzbieta & Pankov Dmitrij, 2019. "Employees’ Competences in Knowledge-Intensive Business Sector – Comparative Analysis in Two Cee Countries," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 64(1), pages 3-15, April.
    9. McDowell, William C. & Peake, Whitney O. & Coder, LeAnne & Harris, Michael L., 2018. "Building small firm performance through intellectual capital development: Exploring innovation as the “black box”," Journal of Business Research, Elsevier, vol. 88(C), pages 321-327.
    10. Giuseppe Marzo, 2013. "Some Unintended Consequences of Metaphors: The Case of Capital in Intellectual Capital Research," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2013(3-4), pages 111-140.
    11. Muhammad Nadeem & Stephen Bahadar & Rashid Zaman & Muhammad Bilal Farooq, 2021. "Does organisational capital influence environmental strategies? Evidence from environmental innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 30(8), pages 4121-4135, December.
    12. Snejina Michailova & Elena Sidorova, 2010. "Knowledge Management In Transition Economies: Selected Key Issues And Possible Research Avenues," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(1).
    13. Cynthia Ho & Kylie Redfern, 2010. "Consideration of the Role of Guanxi in the Ethical Judgments of Chinese Managers," Journal of Business Ethics, Springer, vol. 96(2), pages 207-221, October.
    14. M. Carolina Martins Rodrigues & Raul Pommer Barbosa & Luciana Aparecida Barbieri da Rosa & Maria José Sousa & Waleska Yone Yamakawa Zavatti Campos, 2022. "Intellectual Capital of Technology-Based Incubators," Administrative Sciences, MDPI, vol. 12(4), pages 1-14, December.
    15. Skerlavaj, Miha & Su, Chunke & Huang, Meikuan, 2013. "The moderating effects of national culture on the development of organisational learning culture: A multilevel study across seven countries," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(1), pages 97-134.
    16. Andreeva, T. & Garanina, T., 2015. "Intellectual capital elements and organizational performance of Russian manufacturing companies," Working Papers 6413, Graduate School of Management, St. Petersburg State University.
    17. Jane Boeske & Peter A. Murray, 2022. "The Intellectual Domains of Sustainability Leadership in SMEs," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
    18. Thierry Burger-Helmchen & Patrick Llerena, 2012. "Creativity, Human Resources and Organizational Learning," Chapters, in: Guido Buenstorf (ed.), Evolution, Organization and Economic Behavior, chapter 8, Edward Elgar Publishing.
    19. Boateng, Agyenim & Asongu, Simplice & Akamavi, Raphael & Tchamyou, Vanessa, 2018. "Information asymmetry and market power in the African banking industry," Journal of Multinational Financial Management, Elsevier, vol. 44(C), pages 69-83.
    20. Gianluca Ginesti & Mario Ossorio, 2021. "The influence of family-related factors on intellectual capital performance in family businesses," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(2), pages 535-560, June.

    More about this item

    Keywords

    intellectual capital; elements of intellectual capital; companies’ performance; manufacturing sector; Russia;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

    Statistics

    Access and download statistics

    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:hig:fsight:v:11:y:2017:i:1:p:31-40. 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: Nataliya Gavrilicheva or Mikhail Salazkin (email available below). General contact details of provider: https://edirc.repec.org/data/hsecoru.html .

    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.