IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v26y2022i10ns1363919622500712.html
   My bibliography  Save this article

Knowledge Capital And Innovation Across Firms In Asian Economies: A Balanced Investment Approach

Author

Listed:
  • MUHAMMAD AZHAR KHALIL

    (Department of Finance, Martin de Tours School of Management and Economics, Assumption University, Bangkok, Thailand)

  • KRIDSDA NIMMANUNTA

    (��NIDA Business School, National Institute of Development Administration, Bangkok, Thailand)

Abstract

The difference between knowledge capital and innovation and their combined impact on firm market performance remains a puzzle. Firms can utilise their accumulated stock of knowledge to create value, and at the same time, allocate their resources each year to create innovation, hoping to sustain their performance and make a better future. Using time fixed effects panel regression with industry and country dummies, this study investigates how knowledge capital and innovation impact firm performance by analysing the sample of 2,958 listed companies of Asian countries during 2015–2019. We observe that different sectors exhibit strong variations in their levels of knowledge capital and innovation. This study finds that more knowledge capital negatively impacts firm performance, but up to a certain point. The U-shaped relationship found suggests that learning and accumulating capabilities to exploit knowledge capitals’ potential is essential to achieve higher firm value. We also find that firms’ more spending on innovation positively impacts firm performance, but only up to a certain level. An inverted U-shaped relationship found suggests a balanced investment in innovation activities to attain improved firm performance. Implications for management and potential for further research are provided.

Suggested Citation

  • Muhammad Azhar Khalil & Kridsda Nimmanunta, 2022. "Knowledge Capital And Innovation Across Firms In Asian Economies: A Balanced Investment Approach," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 26(10), pages 1-42, December.
    • Handle: RePEc:wsi:ijimxx:v:26:y:2022:i:10:n:s1363919622500712
    DOI: 10.1142/S1363919622500712
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1363919622500712
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1363919622500712?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Investment management; intangibles; knowledge-intensity; innovation-intensity; R&D; nonlinearities; firm performance;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    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:wsi:ijimxx:v:26:y:2022:i:10:n:s1363919622500712. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    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.