Purpose – On the health care industry, the paper aims to study the effects of intellectual capital, identify using an input‐process‐output concept of human, customer, innovative and process capitals, on company performances. Design/methodology/approach – From a resource‐based and intellectual capital perspective, the structural path model is applied to financial data to analyze the six‐value creation relationships among the four components of intellectual capital, as well as the causal effects of intellectual capital on company performance. Findings – Empirical findings suggest a significant relationship between intellectual capital and company performance. These results also suggest that innovative capacity and process reformation shall be considered first, and through the human value‐added of human capital, firms can improve their company's performance. Originality/value – There have been many arguments as to whether intellectual capital is quantitatively measurable. This paper provides a tangible means of quantifying intellectual capital.
Journal of Intellectual Capital – Emerald Publishing
Published: Oct 19, 2010
Keywords: Intellectual capital; Business performance
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