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The Impact of Intellectual Capital Efficiency on Corporate Sustainable Growth-Evidence from Smart Agriculture in China

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  • Xin Long Xu

    (College of Tourism, Hunan Normal University, Changsha 410006, China)

  • Hsing Hung Chen

    (School of Business, Macau University of Science and Technology, Macau, China)

  • Rong Rong Zhang

    (School of Business, Macau University of Science and Technology, Macau, China)

Abstract

In this paper, we expand the value-added intellectual coefficient (VAIC) model by constructing a comprehensive financial capital (FC) component. Human capital efficiency is subdivided into executive (EHCE) and nonexecutive human capital efficiency (NHCE). We have sampled listed agriculture companies (LAC) in China’s Shanghai and Shenzhen A-share markets from 2009 to 2018 and categorized them as high-tech (HTAC) and non-high-tech agriculture companies (NHTAC). We find that capital employed efficiency (CEE) and EHCE have a significant positive effect on corporate sustainable growth (CSG) of HTAC but no significant effect on CSG of NHTAC, while FC has a significant positive effect on both. These results suggest that companies, especially HTAC, should invest in human capital, and their executives and policymakers should develop effective knowledge management tools and begin accumulating the necessary intellectual capital to allow adaptation to their changing environment. In the spirit of the intellectual agriculture concept, we present some new ways to study the performance of agricultural companies using intellectual capital and offer suggestions that can help to modernize the industry.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jagris:v:10:y:2020:i:6:p:199-:d:366408
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    Cited by:

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    4. Jan Polcyn, 2022. "Determining Value Added Intellectual Capital (VAIC) Using the TOPSIS-CRITIC Method in Small and Medium-Sized Farms in Selected European Countries," Sustainability, MDPI, vol. 14(6), pages 1-20, March.
    5. Xin Long Xu & Jianping Li & Dengsheng Wu & Xi Zhang, 2021. "The intellectual capital efficiency and corporate sustainable growth nexus: comparison from agriculture, tourism and renewable energy sector," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16038-16056, November.
    6. Jian Chen & Xiaohua Chen & Qingyan Zeng & Ishbir Singh & Amit Sharma, 2021. "Internet of Things-Based Agricultural Mechanization Using Neural Network Extreme Learning on Rough Set," International Journal of Agricultural and Environmental Information Systems (IJAEIS), IGI Global, vol. 12(2), pages 15-29, April.
    7. Zhengyu Ren & Hsing Hung Chen & Kunseng Lao & Hongyi Zhang, 2022. "A Decision Support System to Estimate Green Sustainability from Environmental Protection and Debt Financing Indicators," Agriculture, MDPI, vol. 12(8), pages 1-13, August.

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