Do Intellectual Capital Elements Spur Firm Performance? Evidence from the Textile and Apparel Industry in China | Zendy

Liang Zhang | Zendy; Qi Yu | Zendy; Zhenji Jin | Zendy; Jian Xu | Zendy

AI Assistant Blog Pricing

Home ZAIA Blog

Open Access

Do Intellectual Capital Elements Spur Firm Performance? Evidence from the Textile and Apparel Industry in China

Author(s) -

Liang Zhang,

Qi Yu,

Zhenji Jin,

Jian Xu

Publication year - 2021

Publication title -

mathematical problems in engineering

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.262

H-Index - 62

eISSN - 1026-7077

pISSN - 1024-123X

DOI - 10.1155/2021/7332885

Subject(s) - profitability index , intellectual capital , business , structural capital , industrial organization , productivity , value (mathematics) , textile industry , clothing , relational capital , competitive advantage , investment (military) , human capital , commerce , marketing , economics , individual capital , financial capital , finance , market economy , economic growth , archaeology , machine learning , politics , computer science , political science , law , history

This paper examines how investment in intellectual capital (IC) elements by textile and apparel companies improves firm performance measured in terms of profitability, market value, and productivity. The modified value-added intellectual coefficient (MVAIC) model is applied to measure IC. Using a panel of 35 Chinese textile and apparel companies for a six-year period (2013–2018), the results show that physical and human capitals are the strong factors that contribute to firm performance. In addition, relational capital negatively influences profitability and market value, and structural capital and innovation capital have a negative impact on employee productivity. We also find that the MVAIC model performs better in measuring IC than the original value-added intellectual coefficient (VAIC) model. This paper can provide some insights for corporate managers to enhance firm performance and gain competitive advantage by proper utilization of IC in traditional industries.

The content you want is available to Zendy users.

Already have an account? Click here to sign in.

Having issues? You can contact us here

Accelerating Research