IDEAS home Printed from https://ideas.repec.org/a/mgs/jibrme/v1y2015i1p16-23.html
   My bibliography  Save this article

Impact of Intellectual Capital on Financial Performance of Banks in Tanzania

Author

Listed:
  • Janeth N. Isanzu

    (School of Management, Wuhan University of Technology, Wuhan, P.R.China, 430070)

Abstract

Since the financial sector reforms took place in the last two decades, Banks in Tanzania have continued to play the major role in reshaping the economy of the nation. With the emergence of knowledge based economy many firm have changed their way of doing business instead of relying more on physical capital they have shifted to intellectual capital. This is no exception for the banks operating in developing counties Tanzania included. Many studies have been done in the area of intellectual capital and its contribution to the value of the firm. This study sets out to extend the evidence by investigating the intellectual capital of banks operating in Tanzania for the period of four years from 2010 to 2013. Annual reports, especially the profit and loss accounts and balance sheets of the selected banks have been used to obtain the data. The study uses Value Added Intellectual Capital model (VAICTM) in determining intellectual capital and its three major components like Human Capital Efficiency (HCE) Structural capital efficiency (SCE) and Capital Employed Efficiency (CEE). The results revealed that Intellectual capital has a positive relationship with financial performance of banks operating in Tanzania and also when the VAICTM was divided into its three components it was discovered that the financial performance is positively related to Human capital efficiency and Capital employed efficiency but is negatively related to Structural capital efficiency.

Suggested Citation

  • Janeth N. Isanzu, 2015. "Impact of Intellectual Capital on Financial Performance of Banks in Tanzania," Journal of International Business Research and Marketing, Inovatus Services Ltd., vol. 1(1), pages 16-23, November.
    • Handle: RePEc:mgs:jibrme:v:1:y:2015:i:1:p:16-23
    as

    Download full text from publisher

    File URL: http://researchleap.com/wp-content/uploads/2015/12/2.-Impact-of-Intellectual-Capital-on-Financial-Performance-of-Banks-in-Tanzania1.pdf
    Download Restriction: no
    File URL: http://researchleap.com/impact-of-intellectual-capital-on-financial-performance-of-banks-in-tanzania/
    Download Restriction: no
    ---><---

    Citations

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


    Cited by:

    1. Mehmet Asutay & Ubaidillah, 2024. "Examining the Impact of Intellectual Capital Performance on Financial Performance in Islamic Banks," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1231-1263, March.
    2. Rilla Gantino, 2020. "Leadership Style, Intellectual Capital and Corporate Social Responsibility on Performance, a Comparison Model of Listed Companies in Indonesia," GATR Journals afr192, Global Academy of Training and Research (GATR) Enterprise.
    3. 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.
    4. Sam-Quarm, Richmond & Busharads, Mohamed Osman Elamin & Septiadi, Tedi & Institute of Research, Asian, 2020. "Intellectual Capital, Bank Profitability, and Bank Value," OSF Preprints y6n75, Center for Open Science.
    5. Nguyet Thi Nguyen, 2023. "The Impact of Intellectual Capital on Service Firm Financial Performance in Emerging Countries: The Case of Vietnam," Sustainability, MDPI, vol. 15(9), pages 1-19, April.
    6. 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.
    7. Al Shahrani Saad M & Al Shahrani Saad M, 2016. "The Impact of Organizational Factors on Financial Performance: Building a Theoretical Model," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 2(7), pages 51-56, June.
    8. Al Shahrani Saad M & Al Shahrani Saad M, 2016. "The Impact of Organizational Factors on Financial Performance: Building a Theoretical Model," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 2(7), pages 51-56, June.
    9. Elwira Gross-Golacka & Marta Kusterka-Jefmanska & Radoslaw Miskiewicz & Bartlomiej Jefmanski & Agnieszka Rzepka & Teresa Kupczyk, 2021. "The Intellectual Capital and its Impact on the Sustainable Development of the SML-Sized Enterprises in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 410-429.

    More about this item

    Keywords

    Intellectual Capital; Banks; Value Added Intellectual Capital (VAICTM); financial performance;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

    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:mgs:jibrme:v:1:y:2015:i:1:p:16-23. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Bojan Obrenovic (email available below). General contact details of provider: https://researchleap.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.