IDEAS home Printed from https://ideas.repec.org/a/bap/journl/170205.html
   My bibliography  Save this article

Effect of Intellectual Capital on Firms¡¯ Competitive Advantage Condition: An Empirical Investigation in India

Author

Listed:
  • Trilochan Tripathy

    (XLRI- Xavier School of Management, Jamshedpur-831001, INDIA)

  • Luis A. Gil-Alana

    (Faculty of Economics & Business Administration, University of Navarra Pamplona, E-31080, SPAIN)

  • Debadutta Sahoo

    (Tata Consultancy Services, Infocity, Bhubaneswar-751024, INDIA)

Abstract

This paper aims to model the effect of intellectual capital on firms¡¯ competitive advantage condition across selected Indian industries. Using a panel dataset consisting of 146 Indian companies listed in the Bombay Stock Exchange (BSE), spanning across 7 industries during 2003 to 2012. The study suggests that the firms¡¯ competitive advantage condition is relatively better explained by some of the individual intellectual capital components rather than by the Public¡¯s Composite Value Added Intellectual Capital Coefficient (VAIC) measure. Physical and financial capital efficiency (VACA) statistically determines the firms¡¯ competitive advantage condition irrespective of the industry segments. However, along with VACA, human capital efficiency (HCVA) is also observed to be a significant determinant of firms¡¯ competitive advantage conditions for automobiles, consumer goods, health and pharmaceuticals and information technology industries. The result extends the understanding of how VAIC and other associated components determine competitive advantage condition of firms¡¯ across industries in India. To the best of authors' knowledge, for the first time the firms¡¯ competitive advantage condition is modeled in a VAIC framework.

Suggested Citation

  • Trilochan Tripathy & Luis A. Gil-Alana & Debadutta Sahoo, 2017. "Effect of Intellectual Capital on Firms¡¯ Competitive Advantage Condition: An Empirical Investigation in India," Review of Economics & Finance, Better Advances Press, Canada, vol. 8, pages 61-78, May.
    • Handle: RePEc:bap:journl:170205
    Note: The authors thank the anonymous reviewers and the editor of the ¡®Review of Economics & Finance¡¯ for their valuable comments that bring rigor into this work.
    as

    Download full text from publisher

    File URL: http://www.bapress.ca/ref/ref-article/1923-7529-2017-02-61-18.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christina Suciu, 2006. "Intellectual capital as a source of the competitive advantage," Management & Marketing, Economic Publishing House, vol. 1(4), Winter.
    2. Goran Roos & Stephen Pike & Lisa Fernstrom, 2005. "Valuation and reporting of intangibles – state of the art in 2004," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 2(1), pages 21-48.
    3. Abdulrahman Al‐Twaijry, 2009. "Intangible assets and future growth: evidence from Japan," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 17(1), pages 23-39, May.
    4. Trilochan Tripathy & Luis A. Gil-Alana & Debadutta Sahoo, 2015. "The effect of intellectual capital on firms' financial performance: an empirical investigation in India," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 12(4), pages 342-371.
    5. Trilochan Tripathy & Ashok Kumar Sar & Debadatta Sahoo, 2014. "The Effect of Intellectual Capital on Firms’ Valuation: An Empirical Investigation with Reference to India," The IUP Journal of Applied Economics, IUP Publications, vol. 0(3), pages 45-68, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Muhammad Mujtaba & Sadaf Jamal & Jawaid Ahmed Qureshi & Yaseen Shaikh, 2018. "Human Capital is a Competitive Advantage of Businesses: Analysis of Automobile Firms of Pakistan," Asian Themes in Social Sciences Research, Knowledge Press, vol. 2(1), pages 16-22.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trilochan Tripathy & Debadutta Sahoo & Ankit Kesharwani & Ajay Kumar Mishra, 2016. "Competition, intellectual capital efficiency and firms' performance outcome in India: a structural equation modelling," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 13(1), pages 72-95.
    2. Jian Xu & Binghan Wang, 2018. "Intellectual Capital, Financial Performance and Companies’ Sustainable Growth: Evidence from the Korean Manufacturing Industry," Sustainability, MDPI, vol. 10(12), pages 1-15, December.
    3. Jian Xu & Yue Shang & Weizhen Yu & Feng Liu, 2019. "Intellectual Capital, Technological Innovation and Firm Performance: Evidence from China’s Manufacturing Sector," Sustainability, MDPI, vol. 11(19), pages 1-16, September.
    4. Boris Urban & Gabriël Coenraad Daniël Stoltz Joubert, 2017. "Multidimensional and comparative study on intellectual capital and organisational performance," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 18(1), pages 84-99, January.
    5. Claudiu-Marian Gruian, 2011. "The Influence Of Intellectual Capital On Romanian Companies' Financial Performance," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(13), pages 1-9.
    6. Xin Long Xu & Hsing Hung Chen & Rong Rong Zhang, 2020. "The Impact of Intellectual Capital Efficiency on Corporate Sustainable Growth-Evidence from Smart Agriculture in China," Agriculture, MDPI, vol. 10(6), pages 1-15, June.

    More about this item

    Keywords

    Intellectual capital; Competitive advantage; Physical capital; Structural capital and human capital; Innovative capital and relational capital;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bap:journl:170205. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carlson (email available below). General contact details of provider: http://www.bapress.ca .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.