Open AccessIntellectual capital components and its relationship to Microfinance institutions’ performance
Author(s) -
Maryam Jameelah Hashim,
Nur Afizah Muhamad Arifin,
Mohd Faizal Kamarudin,
Rahim Khamis
Publication year - 2020
Publication title -
advances in business research international journal
Language(s) - English
Resource type - Journals
eISSN - 2462-1838
pISSN - 2462-1455
DOI - 10.24191/abrij.v6i2.10853
Subject(s) - microfinance , intellectual capital , business , empirical research , positive relationship , ambiguity , capital (architecture) , classical economics , industrial organization , economics , economic growth , finance , psychology , statistics , social psychology , linguistics , philosophy , mathematics , archaeology , history
In a majority of banking and non-banking institutions, intellectual capital (IC) is one of the prominent factors that contributes to the development of knowledge-based economy and increase in competitiveness. However, there is an ambiguity in whether a firm’s precious resources could guarantee the success of new strategies. Thus, this study was undertaken to examine the significant effect of intellectual capital on the performance of MFIs. This study also examined whether the MFIs specification could have a moderating effect on the relationship between intellectual capital and MFIs’ performance. The current study used the PLS-SEM to analyze the research model and found that it explains 43.6 % of the substantial amount of variance in the performance of MFIs. Theoretically, the study extends the resource-based view (RBV) in projecting the MFIs’ performance. The empirical results show that there is a significant relationship between IC and MFIs’ performance for both banking and non-banking MFIs.