IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i8p2354-d224305.html
   My bibliography  Save this article

Intellectual Capital Performance of the Textile Industry in Emerging Markets: A Comparison with China and South Korea

Author

Listed:
  • Jian Xu

    (School of Management, Qingdao Agricultural University, Qingdao 266109, China)

  • Binghan Wang

    (Business School, Lincoln University, Lincoln 7647, New Zealand)

Abstract

In this study, the Value Added Intellectual Capital (VAIC TM ) and Modified Value Added Intellectual Capital (MVAIC TM ) models are utilized to analyze intellectual capital (IC) performance of the textile industry in China and South Korea during 2012–2017, and measure the contribution of IC sub-components to companies’ performance. The results show that the aggregate IC positively affects earnings, profitability, and productivity of textile companies in China and South Korea. At the sub-components level, the contribution of capital employed efficiency (CEE) is the largest, followed by structural capital efficiency (SCE), and relational capital efficiency (RCE) in China’s textile industry. In addition, Korea’s textile industry relies heavily on CEE and human capital efficiency (HCE), while the contribution of RCE is relatively small. Finally, relevant policies are put forward to promote the sustainable development of the textile industry in these two emerging markets.

Suggested Citation

  • Jian Xu & Binghan Wang, 2019. "Intellectual Capital Performance of the Textile Industry in Emerging Markets: A Comparison with China and South Korea," Sustainability, MDPI, vol. 11(8), pages 1-16, April.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:8:p:2354-:d:224305
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/8/2354/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/8/2354/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ahi, Payman & Searcy, Cory & Jaber, Mohamad Y., 2018. "A Quantitative Approach for Assessing Sustainability Performance of Corporations," Ecological Economics, Elsevier, vol. 152(C), pages 336-346.
    2. Nazim Hussain & Ugo Rigoni & Elisa Cavezzali, 2018. "Does it pay to be sustainable? Looking inside the black box of the relationship between sustainability performance and financial performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1198-1211, November.
    3. Lin, Boqiang & Chen, Yu & Zhang, Guoliang, 2018. "Impact of technological progress on China's textile industry and future energy saving potential forecast," Energy, Elsevier, vol. 161(C), pages 859-869.
    4. Ion Anghel & Marian Siminica & Mirela Cristea & Mirela Sichigea & Gra?iela Georgiana Noja, 2018. "Intellectual Capital and Financial Performance of Biotech Companies in the Pharmaceutical Industry," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(49), pages 631-631, August.
    5. Wen Xiao & Jia-Dong Pan & Li-Yun Liu, 2018. "China’S Industrial Structure Upgrade In The “New Normal”: Empirical Test And Determinants," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 63(04), pages 1037-1058, September.
    6. Tajammal Hussain & Rick Edgeman & Jacob Eskildsen & Alaa Mohamed Shoukry & Showkat Gani, 2018. "Sustainable Enterprise Excellence: Attribute-Based Assessment Protocol," Sustainability, MDPI, vol. 10(11), pages 1-13, November.
    7. Lee, Liane W.Y. & Tang, Yiming & Yip, Leslie S.C. & Sharma, Piyush, 2018. "Managing customer relationships in the emerging markets – guanxi as a driver of Chinese customer loyalty," Journal of Business Research, Elsevier, vol. 86(C), pages 356-365.
    8. Ming‐Lang Tseng & Ming K. Lim & Kuo‐Jui Wu, 2018. "Corporate sustainability performance improvement using an interrelationship hierarchical model approach," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1334-1346, December.
    9. Carol Yeh-Yun Lin & Leif Edvinsson & Jeffrey Chen & Tord Beding, 2013. "National Intellectual Capital and the Financial Crisis in Greece, Italy, Portugal, and Spain," SpringerBriefs in Economics, Springer, edition 127, number 978-1-4614-5990-3, October.
    10. Patricia Ordonez de Pablos, 2004. "The importance of relational capital in service industry: the case of the Spanish banking sector," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 1(4), pages 431-440.
    11. 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.
    12. Li, Ke & Lin, Boqiang, 2017. "Economic growth model, structural transformation, and green productivity in China," Applied Energy, Elsevier, vol. 187(C), pages 489-500.
    13. Mao-Chang Wang, 2013. "Value relevance on intellectual capital valuation methods: the role of corporate governance," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(2), pages 1213-1223, February.
    14. Peng, Lihong & Zhang, Yiting & Wang, Yejun & Zeng, Xiaoling & Peng, Najun & Yu, Ang, 2015. "Energy efficiency and influencing factor analysis in the overall Chinese textile industry," Energy, Elsevier, vol. 93(P1), pages 1222-1229.
    15. Carol Yeh-Yun Lin & Leif Edvinsson, 2013. "National intellectual capital in Israel and financial crisis impact," International Journal of Knowledge-Based Development, Inderscience Enterprises Ltd, vol. 4(3), pages 245-273.
    16. Carol Yeh-Yun Lin & Leif Edvinsson & Jeffrey Chen & Tord Beding, 2013. "National Intellectual Capital and the Financial Crisis in Brazil, Russia, India, China, Korea, and South Africa," SpringerBriefs in Economics, Springer, edition 127, number 978-1-4614-6089-3, October.
    17. Bojan Krstić & Ljiljana Bonić, 2016. "EIC: A New Tool for Intellectual Capital Performance Measurement," Prague Economic Papers, Prague University of Economics and Business, vol. 2016(6), pages 723-741.
    18. repec:aud:audfin:v:20:y:2018:i:49:p:631 is not listed on IDEAS
    19. Carol Yeh-Yun Lin & Leif Edvinsson & Jeffrey Chen & Tord Beding, 2013. "National Intellectual Capital and the Financial Crisis in China, Hong Kong, Singapore, and Taiwan," SpringerBriefs in Economics, Springer, edition 127, number 978-1-4614-5984-2, October.
    20. Harishankar Vidyarthi, 2019. "Dynamics of intellectual capitals and bank efficiency in India," The Service Industries Journal, Taylor & Francis Journals, vol. 39(1), pages 1-24, January.
    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. Quan Tran & Anh‐Tuan Doan & Thao Tran, 2022. "What are the drivers of SMEs' financial performance? The interaction of intellectual capital and ownership," Australian Economic Papers, Wiley Blackwell, vol. 61(4), pages 751-777, December.
    2. Lujing Liu & Jiyue Zhang & Jian Xu & Yiqun Wang, 2022. "Intellectual Capital and Financial Performance of Chinese Manufacturing SMEs: An Analysis from the Perspective of Different Industry Types," Sustainability, MDPI, vol. 14(17), pages 1-17, August.
    3. Murat Ocak & Derya Fındık, 2019. "The Impact of Intangible Assets and Sub-Components of Intangible Assets on Sustainable Growth and Firm Value: Evidence from Turkish Listed Firms," Sustainability, MDPI, vol. 11(19), pages 1-23, September.
    4. Guangchun Jin & Jian Xu, 2022. "Does Intellectual Capital Affect Financial Leverage of Chinese Agricultural Companies? Exploring the Role of Firm Profitability," Sustainability, MDPI, vol. 14(5), pages 1-14, February.
    5. Monika Barak & Rakesh Kumar Sharma, 2024. "Does intellectual capital impact the financial performance of Indian public sector banks? An empirical analysis using GMM," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    6. Serhii Lehenchuk & Iryna Zhyhlei & Olena Ivashko & Grzegorz Gliszczyński, 2023. "The Impact of Sustainability Reporting on Financial Performance: Evidence from Turkish FBT and TCL Sectors," Sustainability, MDPI, vol. 15(20), pages 1-13, October.
    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. Kanishka Gupta & T. V. Raman, 2021. "The nexus of intellectual capital and operational efficiency: the case of Indian financial system," Journal of Business Economics, Springer, vol. 91(3), pages 283-302, April.
    9. Jian Xu & Muhammad Haris & Hongxing Yao, 2019. "Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan," Sustainability, MDPI, vol. 11(23), pages 1-23, November.
    10. 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.
    11. Monika Barak & Rakesh Kumar Sharma, 2023. "Investigating the Impact of Intellectual Capital on the Sustainable Financial Performance of Private Sector Banks in India," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    12. Md. Sohel Rana & Syed Zabid Hossain, 2023. "Intellectual Capital, Firm Performance, and Sustainable Growth: A Study on DSE-Listed Nonfinancial Companies in Bangladesh," Sustainability, MDPI, vol. 15(9), pages 1-23, April.
    13. Siti Zaitun Saddam & Nurhuda Nizar & Nurul Azrin Ariffin & Norazira Mohd Abas, 2023. "The Effects of Dynamic Capabilities on Firm’s Financial Performance," Information Management and Business Review, AMH International, vol. 15(1), pages 37-45.
    14. Indrawati Nur Khusniyah & Djazuli Atim & Salim Ubud, 2022. "The Mediation and Moderation Role of Knowledge Assets in Relationship Between Intellectual Capital Dimensions and Company Performances," HOLISTICA – Journal of Business and Public Administration, Sciendo, vol. 13(2), pages 9-24, December.
    15. Emilia-Zorica Bozga, 2021. "Insights from Companies Research: Sustainability Matters," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 199-206, August.
    16. Pearl Abredu & Cai Li & Frank Kofi Essien & Isaiah Agbenu Akanbi Adegoke, 2023. "Unleashing Potential: Overcoming Bottlenecks and Catalyzing Innovations in Intellectual Capital Intellectualization of Small and Medium-Sized Enterprises in Jiangsu During the Post-Industrial Era," SAGE Open, , vol. 13(4), pages 21582440231, December.
    17. Juhi Gupta & Payal Rathore & Smita Kashiramka, 2023. "Impact of Intellectual Capital on the Financial Performance of Innovation-Driven Pharmaceutical Firms: Empirical Evidence from India," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1052-1076, June.
    18. Ahmed Jinjiri Bala & Aminu Hassan & Kabiru Isa Dandago & Attahir Babaji Abubakar & Zaharaddeen Salisu Maigoshi, 2021. "On the relationship between intellectual capital efficiency and firm value: evidence from the Nigerian oil and gas downstream sector," International Journal of Learning and Intellectual Capital, Inderscience Enterprises Ltd, vol. 18(3), pages 222-251.
    19. Camelia Oprean-Stan & Sebastian Stan & Vasile Brătian, 2020. "Corporate Sustainability and Intangible Resources Binomial: New Proposal on Intangible Resources Recognition and Evaluation," Sustainability, MDPI, vol. 12(10), pages 1-23, May.

    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. Camelia Oprean-Stan & Sebastian Stan & Vasile Brătian, 2020. "Corporate Sustainability and Intangible Resources Binomial: New Proposal on Intangible Resources Recognition and Evaluation," Sustainability, MDPI, vol. 12(10), pages 1-23, May.
    2. Marcantonio Caltabiano & Silvia Meggiolaro & Valentina Tocchioni, 2023. "The impact of parental separation on the pattern of transition to adulthood in Italy," Econometrics Working Papers Archive 2023_07, Universita' degli Studi di Firenze, Dipartimento di Statistica, Informatica, Applicazioni "G. Parenti".
    3. Bertoli, Paola & Grembi, Veronica & Nguyen, The Linh Bao, 2020. "Birth in Hard Times When You Belong To Minorities," GLO Discussion Paper Series 729, Global Labor Organization (GLO).
    4. Paola Bertoli & Veronica Grembi & The Linh Bao Nguyen, 2023. "Birth outcomes in hard times among minority ethnic groups," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(1), pages 263-294, January.
    5. LUPPI, FRANCESCA & Rosina, Alessandro & Sironi, Emiliano, 2020. "On the impact of COVID-19 pandemic on the intention to leave the parental home," SocArXiv 9y6s5, Center for Open Science.
    6. Sebastian Emanuel Stan & Camelia Oprean-Stan & Aurel Mihail Țîțu, 2020. "Digitalization - Sustainable Development Convergence: Metrics And Effects In Romania," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 12(1), pages 1-9, June.
    7. Workneh, Migbaru Alamirew, 2018. "Poverty, income inequality and unemployment in Spain in the 2008's Financial Crises," MPRA Paper 92462, University Library of Munich, Germany.
    8. AGÂRBICEANU Simona Marcela & PĂUN Tatiana, 2021. "The Need For A Paradigm Shift In Finance: Sustainable Corporate Finance," Management of Sustainable Development, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 13(1), pages 33-38, June.
    9. Tricia Mangal & Day-Yang Liu, 2020. "The contribution to economic growth by industry: The Case of Saint Lucia," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(1), pages 1-6.
    10. A S M Monjurul Hasan & Mohammad Rokonuzzaman & Rashedul Amin Tuhin & Shah Md. Salimullah & Mahfuz Ullah & Taiyeb Hasan Sakib & Patrik Thollander, 2019. "Drivers and Barriers to Industrial Energy Efficiency in Textile Industries of Bangladesh," Energies, MDPI, vol. 12(9), pages 1-19, May.
    11. Lin, Boqiang & Bai, Rui, 2020. "Dynamic energy performance evaluation of Chinese textile industry," Energy, Elsevier, vol. 199(C).
    12. Seck Tan & Allen Lai Yu-Hung, 2016. "Economic Repercussions Of Extreme Events For An Island Nation: Case Of Singapore," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-19, March.
    13. Chen-Mao Liao & Chih-Ming Lin, 2017. "The Effects of the Global Economic Recession and a Reduced Alcohol Tax on Hospitalizations Due to Alcohol-Attributed Diseases in Taiwan," IJERPH, MDPI, vol. 14(6), pages 1-12, May.
    14. Jian Xu & Muhammad Haris & Hongxing Yao, 2019. "Should Listed Banks Be Concerned with Intellectual Capital in Emerging Asian Markets? A Comparison between China and Pakistan," Sustainability, MDPI, vol. 11(23), pages 1-23, November.
    15. 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.
    16. Quan Tran & Anh‐Tuan Doan & Thao Tran, 2022. "What are the drivers of SMEs' financial performance? The interaction of intellectual capital and ownership," Australian Economic Papers, Wiley Blackwell, vol. 61(4), pages 751-777, December.
    17. Camelia Oprean-Stan & Ionica Oncioiu & Iulia Cristina Iuga & Sebastian Stan, 2020. "Impact of Sustainability Reporting and Inadequate Management of ESG Factors on Corporate Performance and Sustainable Growth," Sustainability, MDPI, vol. 12(20), pages 1-31, October.
    18. 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.
    19. Han, Shaojie & Su, Jingqin & Lyu, Yibo & Liu, Qing, 2022. "How do business incubators govern incubation relationships with different new ventures?," Technovation, Elsevier, vol. 116(C).
    20. Dongjing Chen & Xiaotong Guo, 2023. "Impact of the Digital Economy and Financial Development on Residents’ Consumption Upgrading: Evidence from Mainland China," Sustainability, MDPI, vol. 15(10), pages 1-25, May.

    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:gam:jsusta:v:11:y:2019:i:8:p:2354-:d:224305. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.