Premium
Assessment of intellectual capital management in Taiwanese IC design companies: using DEA and the Malmquist productivity index
Author(s) -
Wu WannYih,
Tsai HsinJu,
Cheng KueiYang,
Lai Mengkuan
Publication year - 2006
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.2006.00452.x
Subject(s) - intellectual capital , productivity , structural capital , data envelopment analysis , index (typography) , business , industrial organization , sample (material) , competitive advantage , capital (architecture) , malmquist index , economics , economic capital , marketing , human capital , total factor productivity , individual capital , finance , computer science , economic growth , mathematics , mathematical optimization , chemistry , archaeology , chromatography , world wide web , history
While withstanding a highly competitive environment, an increasing number of firms have recognized that intangible assets rather than tangible ones are vital to achieving competitive advantages. Intellectual capital has replaced physical capital as the primary basis of value creation. Although the importance of intellectual capital in ensuring superior competitive advantages is well accepted, exactly how these two constructs are related has seldom been investigated, particularly for the high‐technology industry. Taking a sample of 39 Taiwanese IC design companies, this study adopted data envelopment analysis and the Malmquist productivity index to evaluate the impact of intellectual capital on competitive advantage. The analytical results revealed that approximately one third of the companies sampled had excellent efficiency in intellectual capital management, while the others still had considerable room to improve their intellectual capital management. The results of this study provide a valuable reference for future studies in alternative contexts.