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Human capital efficiency and firm performance across sectors in an emerging market

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  • Ngoc Phu Tran
  • Duc Hong Vo

Abstract

Human capital is considered the cornerstone of any progress in economic growth and development for any country. Vietnam and other emerging markets are no exception. One effect of human capital efficiency on firm performance is considered in various empirical studies. However, the examination of this efficiency on firm performance in Vietnam and other emerging markets has largely been ignored in the current literature, in particular with the use of a value-added intellectual coefficient (VAIC) model, which has been widely used to measure the value added generated by tangible and intangible assets. This paper is conducted to examine the contribution of human capital efficiency to firm performance across 12 sectors in the Vietnamese economy for the period 2011 to 2018. The generalized method of moments (GMM) technique is used in this paper. Empirical results in this paper strongly confirm that human capital efficiency makes a positive contribution to firm performance across sectors in Vietnam. In addition, the findings in this paper indicate that the banking sector does not have the highest level of human capital accumulation as previously thought. In the context of the Vietnamese economy, the level of human capital efficiency varies across sectors and the oil and gas and energy sectors are the best at human capital efficiency. We outline the policy implications from our findings in this study.

Suggested Citation

  • Ngoc Phu Tran & Duc Hong Vo, 2020. "Human capital efficiency and firm performance across sectors in an emerging market," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1738832-173, January.
    • Handle: RePEc:taf:oabmxx:v:7:y:2020:i:1:p:1738832
    DOI: 10.1080/23311975.2020.1738832
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    Cited by:

    1. Yaser Saleh Al frijat & Ahmed A. Elamer, 2025. "Human capital efficiency, corporate sustainability, and performance: Evidence from emerging economies," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 32(2), pages 1457-1472, March.
    2. Md. Mominur Rahman & Bilkis Akhter, 2021. "The impact of investment in human capital on bank performance: evidence from Bangladesh," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    3. Malik, Arsalan Haneef & Rehan, Muhammad & Hussain, Arsalan & Ur-Rehman, Awais & Kashif, Muhammad, 2026. "Balancing innovation and sustainability: The E-waste challenge in achieving SDG 13 across EEA countries," Technology in Society, Elsevier, vol. 84(C).
    4. Dr. Anne Wanjiru Kiboi, 2025. "Influence of Strategic Planning on Performance of Tier 3 Commercial Banks in Kenya," Journal of Business and Strategic Management, CARI Journals Limited, vol. 10(11), pages 1-13.
    5. repec:bcp:journl:v:7:y:2023:i:5:p:1792-1812 is not listed on IDEAS
    6. Monika Barak & Rakesh Kumar Sharma, 2024. "Analyzing the Impact of Intellectual Capital on the Financial Performance: A Comparative Study of Indian Public and Private Sector Banks," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 20320-20348, December.
    7. AlQershi, Nagwan & Saufi, Roselina Binti Ahmad & Ismail, Noor Azizi & Mohamad, Mohd Rosli Bin & Ramayah, T. & Muhammad, Nik Maheran Nik & Yusoff, Mohd Nor Hakimin Bin, 2023. "The moderating role of market turbulence beyond the Covid-19 pandemic and Russia-Ukraine crisis on the relationship between intellectual capital and business sustainability," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    8. Seema Miglani & Victoria Obeng, 2023. "Gender Diversity and Human Capital Efficiency in Australian Institutions: The Moderating Role of Workforce Environment Quality," JRFM, MDPI, vol. 16(7), pages 1-26, July.
    9. Fei Pang & Ilhan Ozturk & Sidra Sohail, 2025. "Environmental technology and firm performance: The role of digital financial inclusion, information and communication technology, and education," Natural Resources Forum, Blackwell Publishing, vol. 49(4), pages 3684-3702, November.
    10. Lawrence Arokiasamy & Takemi Fujikawa & Shishi Kumar Piaralal & Thilageswary Arumugam, 2023. "A systematic review of literature on Human capital investment and its significance for human resource development," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 14(5), pages 1810-1826, October.
    11. Adamu Jibir & Musa Abdu & Abdullahi Buba, 2023. "Does Human Capital Influence Labor Productivity? Evidence from Nigerian Manufacturing and Service Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 805-830, June.
    12. Abdu Mohammed Assfaw & Dhiraj Sharma, 2024. "Does corporate governance spur bank intellectual capital in an emerging economy? A system GMM analysis from Ethiopia," Future Business Journal, Springer, vol. 10(1), pages 1-28, December.
    13. Panduru Dan Andrei & Simion Petronela Cristina & Ioanid Alexandra, 2024. "Measuring Operational Efficiency: A Functional Analysis of Core and Non-Core Activities in a Leading Romanian Oil and Gas Retail Company," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 18(1), pages 1335-1347.
    14. Robert Zenzerović & Danijela Rabar & Ksenija Černe, 2023. "A Longitudinal Analysis of Economic Activities’ Relative Efficiency Using the DEA Approach," Economies, MDPI, vol. 11(11), pages 1-14, November.
    15. Rayed Obaid Hammoud AlObaid & Omar Al Farooque & Ameen Qasem, 2025. "Does disclosure of CSR activities improve corporate value? Moderating role of intellectual capital and COVID-19 pandemic," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-18, December.
    16. Mahmoud Lari Dashtbayaz & Amjed Hameed Mezher & Khalid Haitham Khalid Albadr & Bashaer Khudhair Abbas Alkafaji, 2023. "The Relationship between Intellectual Capital and Audit Fees," JRFM, MDPI, vol. 16(2), pages 1-28, February.
    17. Maryam Jameelah Mohd Hashim & Mohd Rahim Khamis & Idris Osman, 2025. "Effective Human Capital and Efficient Intellectual Capital will Enhance Bumiputra SMEs Performance in Malaysia," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(6), pages 1222-1237, June.
    18. Quynh Nguyen Thi Nhu, 2025. "Human Capital and Bank Performance: Does Size Matter?," JRFM, MDPI, vol. 18(8), pages 1-16, August.
    19. Salem Gheit, 2022. "A Stochastic Frontier Analysis of the Human Capital Effects on the Manufacturing Industries’ Technical Efficiency in the United States," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 8(3), pages 215-238, July.
    20. Monika Barak & Rakesh Kumar Sharma, 2024. "Does intellectual capital impact the financial performance of Indian public sector banks? An empirical analysis using GMM," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 11(1), pages 1-11, December.
    21. Ahmed Jinjiri Bala & Aminu Hassan & Isah Umar Kibiya, 2026. "Does Profitability Moderate the Effect of Intellectual Innovation on Firm Value in the Technology-Driven Sectors of Emerging Economies?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 17(2), pages 6078-6108, April.
    22. Gerhardt, Vinícius Jaques & Siluk, Julio Cezar Mairesse & Baierle, Ismael Cristofer & Gaspary, João Francisco Pollo & Trevisol, Janyel & Freitas Michelin, Claudia de & Aviles, Norberto Arend, 2025. "A theoretical framework to companies value creation through a systematic review of intangibles’ management," Evaluation and Program Planning, Elsevier, vol. 108(C).

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