IDEAS home Printed from https://ideas.repec.org/a/rnd/arimbr/v16y2024i1p262-273.html
   My bibliography  Save this article

Unveiling the Nexus Between Intellectual Capital Efficiency and Financial Performance in Malaysia's Healthcare Sector Amidst the Covid-19 Crisis

Author

Listed:
  • Noor Sharida Badri Shah
  • Roslan Ja’afar

Abstract

Intellectual capital is a vital element in strategic resources and enhances the productivity of companies in the knowledge-based economy. However, during the COVID-19 pandemic, most of the sectors in Malaysia are affected by staff and apply knowledge-based processes and procedures. The study aims to assess the influence of intellectual capital (IC) efficiency on financial performance in Malaysia's healthcare system during the COVID-19 pandemic. The VAIC technique was used in the study, as well as panel data analysis with STATA 14. The sample was drawn from three (3) years of healthcare annual reports, spanning 2019 to 2021. Eleven (11) healthcare companies were chosen because they have the capacity to develop public healthcare services and provide high-quality medical facilities. The findings for VAIC ranking show Hartalega, the main producer of disposable gloves marked as the highest ranking of efficiency and the least efficient is TMC Life. For panel data analysis, the results exhibit value-added human capital (VAHU) and value-added capital employed (VACA) are observed to have a significant and positive relationship with the dependent variable; Return on Equity (ROE). Human capital and capital employed are considered the most efficient resources to generate profit and the vital elements in the Malaysian healthcare sector to combat the COVID-19 pandemic. This study contributed to the body of knowledge in the Malaysian healthcare sector about intellectual capital literature. Malaysian healthcare organizations can benefit from incorporating more intellectual capital into their operations to preserve long-term development progress.

Suggested Citation

  • Noor Sharida Badri Shah & Roslan Ja’afar, 2024. "Unveiling the Nexus Between Intellectual Capital Efficiency and Financial Performance in Malaysia's Healthcare Sector Amidst the Covid-19 Crisis," Information Management and Business Review, AMH International, vol. 16(1), pages 262-273.
    • Handle: RePEc:rnd:arimbr:v:16:y:2024:i:1:p:262-273
    DOI: 10.22610/imbr.v16i1(I).3685
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3685/2424
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/imbr/article/view/3685
    Download Restriction: no
    File URL: https://libkey.io/10.22610/imbr.v16i1(I).3685?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. Sneha Gautam & Luc Hens, 2020. "COVID-19: impact by and on the environment, health and economy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(6), pages 4953-4954, August.
    3. David G. Hoopes & Tammy L. Madsen & Gordon Walker, 2003. "Guest editors' introduction to the special issue: why is there a resource‐based view? Toward a theory of competitive heterogeneity," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 889-902, October.
    4. Mark A. Youndt & Mohan Subramaniam & Scott A. Snell, 2004. "Intellectual Capital Profiles: An Examination of Investments and Returns," Journal of Management Studies, Wiley Blackwell, vol. 41(2), pages 335-361, March.
    5. Guthrie, James & Ricceri, Federica & Dumay, John, 2012. "Reflections and projections: A decade of Intellectual Capital Accounting Research," The British Accounting Review, Elsevier, vol. 44(2), pages 68-82.
    6. Muhammad Nadeem & John Dumay & Maurizio Massaro, 2019. "If You Can Measure It, You Can Manage It: A Case of Intellectual Capital," Australian Accounting Review, CPA Australia, vol. 29(2), pages 395-407, June.
    7. Michael Habersam & Martin Piber, 2003. "Exploring intellectual capital in hospitals: two qualitative case studies in Italy and Austria," European Accounting Review, Taylor & Francis Journals, vol. 12(4), pages 753-779.
    8. Bontis, Nick & Dragonetti, Nicola C. & Jacobsen, Kristine & Roos, Göran, 1999. "The knowledge toolbox:: A review of the tools available to measure and manage intangible resources," European Management Journal, Elsevier, vol. 17(4), pages 391-402, August.
    9. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    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. Md. Sohel Rana & Syed Zabid Hossain, 2023. "Intellectual Capital, Firm Performance, and Sustainable Growth: A Study on DSE-Listed Nonfinancial Companies in Bangladesh," Sustainability, MDPI, vol. 15(9), pages 1-23, April.
    2. 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.
    3. Raffaele Trequattrini & Alessandra Lardo & Benedetta Cuozzo & Myriam Cano Rubio, 2017. "Intellectual Capital as driver for controlling managers? performance. An innovative approach," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2017(3), pages 123-142.
    4. Hongxing Yao & Muhammad Haris & Gulzara Tariq & Hafiz Mustansar Javaid & Muhammad Aamir Shafique Khan, 2019. "Intellectual Capital, Profitability, and Productivity: Evidence from Pakistani Financial Institutions," Sustainability, MDPI, vol. 11(14), pages 1-30, July.
    5. Md. Mominur Rahman & Bilkis Akhter, 2021. "The impact of investment in human capital on bank performance: evidence from Bangladesh," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    6. Peng, George Z. & Beamish, Paul W., 2019. "Subnational FDI Legitimacy and Foreign Subsidiary Survival," Journal of International Management, Elsevier, vol. 25(3), pages 1-1.
    7. 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.
    8. 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.
    9. Nooteboom, Bart & Van Haverbeke, Wim & Duysters, Geert & Gilsing, Victor & van den Oord, Ad, 2007. "Optimal cognitive distance and absorptive capacity," Research Policy, Elsevier, vol. 36(7), pages 1016-1034, September.
    10. Zhai, Zhe & Ghosal, Vivek, 2022. "Internationalization of innovation and firm performance in the pharmaceutical industry," International Review of Economics & Finance, Elsevier, vol. 80(C), pages 882-905.
    11. Xiaoming He & Yaqun Yi & Zelong Wei, 2019. "New product development capabilities in China: the moderating role of TMT cooperative behavior," Asian Business & Management, Palgrave Macmillan, vol. 18(2), pages 73-97, April.
    12. 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.
    13. Mohamed Ali Boujelbene & Habib Affes, 2013. "Perceptions Du Capital Intellectuel Par Les Managers Etude Empirique Dans Le Contexte Tunisien," Post-Print hal-00991699, HAL.
    14. Ummu Salma Al-Azizah & Bagus Pamungkas Wibowo, 2023. "Impact of Intellectual Capital on Financial Performance: Panel Evidence from Banking Industry in Indonesia," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 51-65.
    15. Faryal Siddiqui, 2012. "Human Capital Management: An Emerging Human Resource Management Practice," International Journal of Learning and Development, Macrothink Institute, vol. 2(1), pages 353-367, February.
    16. Iftikhar, Anas & Purvis, Laura & Giannoccaro, Ilaria, 2021. "A meta-analytical review of antecedents and outcomes of firm resilience," Journal of Business Research, Elsevier, vol. 135(C), pages 408-425.
    17. Chi Zhang & Qingjun Zeng & Charles Chen & Stavros Sindakis & Sakshi Aggarwal & Nipun Dhaulta, 2023. "The Strategic Resources and Competitive Performance of Family-Owned and Non-Family-Owned Firms in the Retail Business of Los Angeles," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 327-355, March.
    18. Martin Piber & Paola Demartini & Lucia Biondi, 2019. "The management of participatory cultural initiatives: learning from the discourse on intellectual capital," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(2), pages 435-458, June.
    19. Faizi Weqar & Ahmed Musa Khan & Mohd. Anas Raushan & S. M. Imamul Haque, 2021. "Measuring the Impact of Intellectual Capital on the Financial Performance of the Finance Sector of India," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 12(3), pages 1134-1151, September.
    20. Jian Xu & Muhammad Haris & Hongxing Yao, 2019. "Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan," Sustainability, MDPI, vol. 11(23), pages 1-23, November.

    More about this item

    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:rnd:arimbr:v:16:y:2024:i:1:p:262-273. 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: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/imbr .

    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.