IDEAS home Printed from https://ideas.repec.org/a/aae/journl/v18y2022i2p105-136.html
   My bibliography  Save this article

The contribution of intellectual capital to banks' competitive and financial performance: The evidence from Poland

Author

Listed:
  • Monika Klimontowicz

    (Ph.D. Hab., Department of Banking and Financial Markets, Faculty of Finance, University of Economics in Katowice, ul. 1 Maja 50, 40-287 Katowice, Poland)

  • Justyna Majewska

    (Ph.D., Department of Demography and Economic Statistics, Faculty of Informatics and Communication, University of Economics in Katowice, ul. 1 Maja 50, 40-287 Katowice, Poland)

Abstract

PURPOSE: The paper aims to investigate the contribution of intellectual capital to banks' competitive and financial performance. METHODOLOGY: The paper uses data retrieved from a research survey. The questionnaire on IC contribution to banks' competitive performance was applied to executive managers of retail banks operating in the Polish banking market. The data collected for the assessment of financial performance were retrieved from banks' annual reports and referred to each year from 2012 to 2019. The data were analyzed by Principal Axis Factor Analysis (PAF) and Partial Least Squares Structural Equation Modelling (PLS-SEM). FINDINGS: The results revealed that banks' competitive and financial performance depends on both the intellectual capital and environmental factors. The relation between financial performance and intellectual capital is positively mediated by competitive performance, and environmental factors can affect the strength of this relationship. The findings show that applying the resource-based theory might not be sufficient to gain a competitive advantage and sustainable market position in the case of banks. IMPLICATIONS: The results develop IC knowledge and prove the necessity to conduct systematic research on their importance for creating value for customers and gaining competitive advantage. They also provide direction for banks' decision-makers concerning factors that should be taken into account to create competitive advantage, market performance, and efficiency. The Polish banking market has transformed from undeveloped and non-competitive into a developed and competitive one during the last few decades. Thus, the results also have implications for other companies operating in transition markets as their competitiveness depends on understanding which factors should be the foundation for their market strategy and their competitiveness and efficiency to become a developed one. ORIGINALITY AND VALUE: The majority of the IC research concentrate on developed countries, and very little is known about developing and transition countries that were successful on their journey. Most of the research has focused on identifying and measuring IC components and the relationship between them. Usually, the research presents the state of the art and it is based on financial reports. However, the extent to which IC impacts competitive and financial performance in banking markets has been relatively rare. To the authors' best knowledge, this is the first study to examine empirically the relationship between intellectual capital, environment, competitive performance, and efficiency in a transformed banking market in Europe, which analyses the IC contribution over a few years' perspectives.

Suggested Citation

  • Monika Klimontowicz & Justyna Majewska, 2022. "The contribution of intellectual capital to banks' competitive and financial performance: The evidence from Poland," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 18(2), pages 105-136.
    • Handle: RePEc:aae:journl:v:18:y:2022:i:2:p:105-136
    DOI: 10.7341/20221824
    as

    Download full text from publisher

    File URL: https://jemi.edu.pl/uploadedFiles/file/all-issues/vol18/issue2/JEMI_Vol18_Issue2_2022_Article4.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.7341/20221824?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sampath Kehelwalatenna & Gamini Premaratne, 2014. "Intellectual capital performance and its long-run behavior: The US banking industry case," New Zealand Economic Papers, Taylor & Francis Journals, vol. 48(3), pages 313-333, December.
    2. John Holland, 2010. "Banks, knowledge and crisis: a case of knowledge and learning failure," Journal of Financial Regulation and Compliance, Emerald Group Publishing Limited, vol. 18(2), pages 87-105, May.
    3. Kuang-Hsun Shih, 2008. "Is e-banking a competitive weapon? A causal analysis," International Journal of Electronic Finance, Inderscience Enterprises Ltd, vol. 2(2), pages 180-196.
    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. Aleksandra Kuzior & Olena Arefieva & Alona Kovalchuk & Paulina Brożek & Volodymyr Tytykalo, 2022. "Strategic Guidelines for the Intellectualization of Human Capital in the Context of Innovative Transformation," Sustainability, MDPI, vol. 14(19), pages 1-17, September.

    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. Ahmadyan , Azam, 2017. "Measuring Liquidity Risk Management and Impact on Bank Performance in Iran," Journal of Money and Economy, Monetary and Banking Research Institute, Central Bank of the Islamic Republic of Iran, vol. 12(3), pages 295-315, July.
    2. Brooks, Chris & Fenton, Evelyn & Schopohl, Lisa & Walker, James, 2019. "Why does research in finance have so little impact?," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 58(C), pages 24-52.
    3. Jennifer Kunz & Mathias Heitz, 2021. "Banks’ risk culture and management control systems: A systematic literature review," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(4), pages 439-493, December.
    4. Chen, Lei & Danbolt, Jo & Holland, John, 2018. "Information about bank intangibles, analyst information intermediation, and the role of knowledge and social forces in the ‘market for information’," Accounting forum, Elsevier, vol. 42(3), pages 261-276.
    5. Mohd Alnajjar, 2013. "Investor Based Psychological Decision Making Model," Far East Journal of Psychology and Business, Far East Research Centre, vol. 11(4), pages 47-56, June.
    6. Asma Abdul Rehman & Abdelhafid Benamraoui & Aasim Munir Dad, 2018. "A comparative study of Islamic and conventional banks’ risk management practices: empirical evidence from Pakistan," Journal of Banking Regulation, Palgrave Macmillan, vol. 19(3), pages 222-235, July.
    7. Hongxing Yao & Muhammad Haris & Gulzara Tariq & Hafiz Mustansar Javaid & Muhammad Aamir Shafique Khan, 2019. "Intellectual Capital, Profitability, and Productivity: Evidence from Pakistani Financial Institutions," Sustainability, MDPI, vol. 11(14), pages 1-30, July.
    8. Vo, Duc, 2018. "Should Bankers Be Concerned with Intellectual Capital? A Study of the Thai Banking Sector," MPRA Paper 103275, University Library of Munich, Germany.
    9. Garcia-Lorenzo, Lucia, 2020. "Organizational remembering as a trigger for cultural change: exploring the episodic memories of a financial scandal," LSE Research Online Documents on Economics 102641, London School of Economics and Political Science, LSE Library.
    10. Abdul Aziz Khan Niazi & Suleman Aziz Lodhi & Abdul Basit & Tehmina Fiaz Qazi, 2020. "Tacit Knowledge Sharing Model For Banks: Remedial Measure Of Likelihood Of Default," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 9(1), pages 32-50, March.
    11. Tasawar Nawaz, 2019. "Exploring the Nexus Between Human Capital, Corporate Governance and Performance: Evidence from Islamic Banks," Journal of Business Ethics, Springer, vol. 157(2), pages 567-587, June.
    12. Monika Klimontowicz, 2019. "The role of banks’ innovativeness in building sustainable market efficiency: the case of Poland," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(1), pages 525-539, September.
    13. Hafiz Ali Javed & Naveed Ahmad Khan & Silke Michalk & Noor Ullah Khan & Muhammad Kamran, 2023. "High-Performance Work System and Innovation Capabilities: The Mediating Role of Intellectual Capital," Administrative Sciences, MDPI, vol. 13(1), pages 1-19, January.
    14. Garcia-Lorenzo, Lucia, 2020. "Organizational remembering as a trigger for cultural change: Exploring the episodic memories of a financial scandal," Scandinavian Journal of Management, Elsevier, vol. 36(1).
    15. Douglas da Rosa München & Herbert Kimura, 2020. "Regulatory Banking Leverage: what do you know?," Working Papers Series 540, Central Bank of Brazil, Research Department.
    16. Shahin Akther & Javed Tariq & Nazrul Islam, 2021. "Measurement of the Effectiveness of Off-the-Job Training Methods in Commercial Banks of Bangladesh," International Journal of Business and Management, Canadian Center of Science and Education, vol. 14(9), pages 160-160, July.
    17. Akintoye Olufemi Temiday, 2023. "Intellectual Capital Investment and Business Sustainability of Deposit Money Banks in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(11), pages 1612-1626, November.
    18. Luxing Liu & Keyu Lei & Hong Jin & Yin-Pei Teng, 2023. "R&D Investment, Executive Incentive, and Financial Performance in GEM: Based on Three-Stage Least Squares Method," SAGE Open, , vol. 13(4), pages 21582440231, November.

    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:aae:journl:v:18:y:2022:i:2:p:105-136. 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: Anna Ujwary-Gil (email available below). General contact details of provider: https://fundacjacognitione.org .

    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.