Open AccessIS TOO MUCH A GOOD THING? THE NON-LINEAR RELATIONSHIP BETWEEN INTELLECTUAL CAPITAL AND FINANCIAL COMPETITIVENESS IN THE CHINESE AUTOMOTIVE INDUSTRY
Author(s) -
Jian Xu,
Feng Li,
Jingci Xie
Publication year - 2022
Publication title -
journal of business economics and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.485
H-Index - 37
eISSN - 1611-1699
pISSN - 2029-4433
DOI - 10.3846/jbem.2022.16406
Subject(s) - automotive industry , intellectual capital , human capital , business , value (mathematics) , investment (military) , china , industrial organization , structural capital , capital (architecture) , financial capital , economics , finance , market economy , individual capital , archaeology , machine learning , politics , computer science , law , political science , engineering , history , aerospace engineering
As one of the five largest industries in China, the automotive industry may well become a prosperous market of production and a large consumer market, but with the 2019 novel coronavirus (COVID-19) outbreak, automotive companies have suffered great losses. How to maintain financial competitiveness (FC) through innovation and knowledge after this calamity has become an area of focus for researchers and practitioners. By analyzing listed Chinese automotive companies over the period 2013–2018, the research focus is to determine the non-linear effect of intellectual capital (IC) on FC. IC is measured by the modified Value Added Intellectual Coefficient (MVAIC) model, and FC is measured through a comprehensive index system. The results reveal a cubic relationship between IC and FC. In addition, physical, innovation, and relational capitals have an S-shaped relationship with FC, whereas human capital has an inverted S-shaped curve. The non-linear effect of SC on FC is not significant. It is recommended that managers optimize investment in IC to drive FC in organizations.