Interaction Effect of Intellectual Capitals on University Performance
Current Journal of Applied Science and Technology,
Intangible assets constitute major resources in the university’s system. However, little or no attention has been given to effective utilization of these resources. This has not only affected the performance of the public universities in Nigeria adversely but also the economic development of the country. Hence, this study examined the effect of the interaction among intellectual capital components on the performance of public universities in South-Western Nigeria. The primary data obtained through the structured questionnaire administered on four hundred and twenty-four (424) respondents were analyzed using ordinary least square regression analysis. The result of the study revealed that the interaction between human capital and structural capital and the interaction between human capital and relational capital has significant positive effect on the performance of public universities in the South-Western Nigeria as indicated by p-values of 0.000 and 0.002 respectively. The result also shows that the interaction between structural intellectual capital and relational capital has an insignificant positive effect on the performance of public universities in the South-Western region of Nigeria as indicated by p-values of 0.139. This study therefore concluded that effective combination of the intellectual capital components improves the performance of public universities in the South-Western region of Nigeria. This study recommends that government at various levels should pay attention to funding strategies of higher education, particularly at university level. Innovative funding strategies that touch all aspects of university activities should reflected in the budget of university education from time to time to translate the expected mandate of ivory tower to reality.
- Intellectual capital
- structural capital
- intangible assets
How to Cite
Girma B. Intellectual Capital Efficiency and Its Impact on Financial Performances of Ethiopian Commercial Bans.Journal of Finance and Accounting. 2017;8(8):17-31.
Vieira RM, Tenreiro-Vieira C, Martins IP. Critical thinking: Conceptual clarification and its importance in science education. Science Education International. 2011; 22(1):43-54.
Ramírez Y, Tejada A, Gordillo S. Recognition of intellectual capital importance in the university sector. International Journal of Business and Social Research. 2013;3(4):27–41.
Centre for World University Ranking; 2019.
Wernerfelt B. A Resource-Based View of the Firm. Strategic Management Journal. 1984;5(2): 171-180.
Barney JB. Firm Resources and Sustained Competitive Advantage. Journal of Management. 1991;17(1):99-120.
Peteraf M, Bergen M. Scanning dynamic Competitive Landscapes: AMarket-Based and Resource-Based Framework. Strategic Management Journal. 2003;24: 1027-1041.
Hansen M, Nohria N, Tierney T. What’s your strategy for managing knowledge? Harvard Business Review. 1999; 77(2):106–116.
Rumelt RP. Towards a Strategic Theory of the Firm. In N. J. Foss, Resources, Firms, and Strategies: A Reader in the Resource-Based Perspective. Oxford: Oxford University Press. 1997;131-145.
McGahan AM, Porter ME. How much does industry matter, really? Strategic Management Journal. 1997;18:15-30.
Hawawini, et al.; 2003.
Chen CJ, Huang JW. Strategic human resource practices and innovation performance: The mediating role of knowledge management capacity. Journal of Business Research. 2009;62(1): 104-114.
Boyd BK, Haynes KT, Hitt MA, Bergh DD, Ketchen DJ. Contingency hypothesesin strategic management research. Journal of Management, 2012;38:278–313.
Barney JB, Wright M, Ketchen DJ. The resource-based view of the firm: Ten years after 1991. Journal of Management. 2001;27:625-641.
Secundo G, Perez SE, Martinaitis Z, Leitner KH. Intellectual Capital Management in European Universities in Times of Changes: An IC Maturity Mode. Paper presented at 9th International Forum on Knowledge Asset Dynamics, Matera, Italy, June 2014;11-13.
Najim NA, Al-Naimi MA, Alnaji A. Impact of intellectual capital on realizing university goals sample of Jordanian universities. European Journal of Business and Management. 2012; 4(14):153-162.
Shehzad U, Fareed Z, Zulfiqar B, Shahza F, Latif HS. The impact of intellectual capital on the performance of universities. European Journal of Contemporary Education. 2014;10(4):273-280.
Ishak AM, Kamaluddin A, Said R. Intellectual capital and performance of Malaysian public university. Knowledge Management International Conference (KMICe) 2014;12 – 15 August 2014, Malaysia, 268-272.
Awan A, Saeed K. Relationship between intellectual capital and organizational performance: A case study of public sector universities in Southern-Punjab, Pakistan. Journal of Resources Development and Management. 2015;9(2012):35–47.
Palumbo R, Di Berardino D. Academic research performance and intellectual capital measurement system: Evidence from Italian Universities; 2015.
Available at SSRN: http://www.ssrn.com
Barbosa S, Vale J, Vale VT, Branco MC. Intellectual capital and performance in higher education organizations. Theory and Applications in the Knowledge Economy. 2016;670–681.
Secundo G, De Beer C, Schutte C, Passiante G. Mobilising intellectual capital to improve European universities’ competitiveness: The technology transfer offices’ role. Journal of Intellectual Capital; 2017.
Innocenti MD, Matousek R, Tzeremes NG. The interconnections of academic research and universities’ “third mission”: Evidence from the UK; 2019.
Sharafi M, Abbaspour A. Relationship between intellectual capital and function in universities and higher education institutes. Quarterly of Education Strategies in Medical Sciences. 2013; 6(2):75–81.
Omeir AK, Moradikia Z, Darvishzadeh Z. Intellectual capital indicators in universities of Iran: Case study of Islamic Azad University of Khuzestan. International Journal of Academic Research in Accounting, Finance and Management Sciences. 2017;7(3):131–138.
Shojale S, Barani G. Investigating the effect of intellectual capital on performance of Islamic Azad University of Ghaemshahr Branch, Mazandaran, Iran. Journal of Humanities Insights. 2017;1(4): 177-180.
Amit R, Schoemaker PJ. Strategic Assets and Organizational Rent. Strategic Management Journal. 1993;14(1):33-46.
Tseng C-Y, Goo Y-JJ. Intellectual capital and corporate value in an emerging economy: empirical study of Taiwanese manufacturers. R&D Management. 2005; 35(2):187-201.
Olve NG, Roy J, Wetter M. Performance drivers. A practical guide to using the balanced scorecard. John Wiley & Sons; 1998.
Bontis N. Intellectual capital: an exploratory study that develops measures and models. Management Decision. 1998; 36(2):63-76.
Edvinsson L. Corporate Longitude. What You Need to Know to Navigate the Knowledge Economy. London: Prentice Hall; 2002.
Umer S, Zeeshan F, Bushra Z, Farrukh S, Hafizs L. The impact of intellectual capital on the performance of universities in Pakistan. European Journal of Contemporary Education. 2014;4(10): 273-280
Ramírez Y, Tejada Á, Baidez A. Intellectual capital and transparency in universities: An empirical study. International Journal of Economics and Management Engineering. 2015;9(9): 3021–3029.
European Commission. RICARDIS: Reporting intellectual capital to augment research development and research development and innovation in SMEs: report to commission of the high level expert group on RICARDIS; 2006.
Edvinsson L, Malone M. Intellectual Capital: Realizing Your Company’s True Value by Finding its Hidden Brainpower. New York: Harper Business; 1997.
Roos G, Roos J, Dragonetti N, Edvinsson L. Intellectual Capital: Navigating the New Business Landscape. New York: New York University Press; 1997.
Stewart TA. Intellectual Capital: The New Wealth of Nations. New York: Doubleday; 1997.
Chen MC, Cheng SJ, Wang YC. An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. Journal of Intellectual Capital. 2005;6(2):159-176.
Bontis N. Assessing knowledge assets: a review of the models used to measure intellectual capital. International Journal of Management Reviews. 2002;3(1):41-60.
Hudson WJ. Intellectual capital: How to build it, enhance it, use it. New York: John Wiley; 1993.
Edvinsson L, Sullivan P. Developing a model for managing intellectual capital. European Management Journal. 1996; 14(4):356–364.
Saint-Onge H. Tacit knowledge the key to the strategic alignment of intellectual capital.Strategy and Leadership. 1996; 24(2):10-16.
Corcoles RY. Importance of intellectual capital disclosure in Spanish Universities. Intellectual Capital Journals. 2013;9(5): 931-944.
Crema M, Verbano C. Managing intellectual capital in Italian manufacturing SMEs. Creativity& Innovation Management 2016;25(3):408-421.
Tahat YA, Ahmed AH, Alhadab MM. The impact of intangible on firm’s financial and market performance: United Kingdom evidence. Review of Quantitative Finance and Accounting. 2018; 5(4):1147-1168
Giustina S, MauuriZio M, John D, Carlo B. Intellectual capital management in the fourth stage of intellectual capital research. Journal of Intellectual Capital. 2018;1(19):157-177.
Zakaria ZNZ. Intellectual capital efficiency and performance: Study on Malaysian Federal Statutory Bodies. Journal of Applied Environmental and Biological Sciences. 2014;4(6S):56-63.
Hudson M, Smart A, Bourne M. Theory and practice in SME performance measurement systems. International Journal of Operations & Production Management. 2001;21(8):1096-1115.
Leitner KH. Intellectual Capital reporting for Universities: concept background and application for Austrian universities. Research Evaluation. 2002;13(2):129-140.
Cricelli L, Greco M, Grimaldi M, Duenas LPL. Intellectual capital and university performance in emerging countries: Evidence from Colombian public universities. Journal of Intellectual Capital. 2018;19(1):71-95.
Sánchez MP, Elena S, Castrillo R. Intellectual capital dynamics inUniversities: A Reporting Model. Journal of Intellectual Capital. 2009;10(2):307-324.
Teece DJ. Managing Intellectual Capital: Organizational, Strategic and Policy Dimensions. Oxford: Oxford University Press; 2000.
Bontis N. National intellectual capital index: A United Nations initiative for the Arab region. Journal of Intellectual Capital. 2004;5(1):13-39.
Boumarafi B, Jabnoun N. Knowledge management and performance in UAE business organizations. Knowledge Management Research and Practice, 2008;6(3):233-238.
Córcoles YR, Ponce ÁT, Baidez AG. Cost – benefit analysis of intellectual capital disclosure: University stakeholders’ view. Spanish Accounting Review. 2013;16(2): 106–117
Huang YC, Wu YCJ. Intellectual capital and knowledge productivity: The Taiwan Biotech Industry. Management Decision 2010;48(4):580-599.
Ramírez Y, Lorduy C, Rojas JA. Intellectual capital management in Spanish Universities. Journal of Intellectual Capital, 2007;8(4):732-748.
Dotzel T, Shankar V, Berry LL. Service innovativeness and firm value.Journal of Marketing Research. 2013;50(2):259-276.
Riahi-Belkaoui A. Intellectual capital and firm performance of US multinational firms. Journal of Intellectual Capital, 2003;4(2):215–226.
Sulastria A, Andriani C, Fitria Y. The implementation analysis of intellectual capital to department performance in Padang State University. Asia-Pacific Management and Business Application. 2014;3(1):1–13.
Dillman DA. Mail and Internet Surveys: The tailored design method. New York: J. Wiley; 2000.
Yamanne T. Statistics: An Introductory Analysis. 2nd Edition. Harper and Row Ltd: New York; 1967.
Lev B. Intangibles: management, measurement and reporting. Washington, DC: Bookings Institution Press; 2011.
Naser SS, Al-Shobaki MJ, Youssef MA. Measuring knowledge management maturity at HEI to enhance performance: An empirical study at Al-Azhar University in Palestine. International Journal of Commerce and Management Research, 2016;2(5):55-62.
Samy SA, Mazen JA, Youssef MA. Promoting Knowledge Management Components in the Palestinian Higher Education Institutions - A Comparative Study. International Letters of Social and Humanistic Sciences, 2016;73: 42-53.
Henseler J, Ringle CM, Sinkovics RR. The Use of Partial Least Squares Path Modeling in International Marketing, in ST Cavusgil, R.R. Sinkovics & PN Ghauri (eds), Advances in International Marketing, Emerald Group Publishing Limited, United Kingdom. 2009; 20.
Isfenti S, Lubis AN. Discriminant Analysis of Intellectual Capital Model of State University in Medan. Procedia - Social and Behavioral Sciences. 2015;2(11):476 – 480.
Isabel RA, López-Fraga PG, Moreano-Martínez LD, Racalde-Chávez TM, Panchi-Mayo VP, Lalama-Aguirre JM. Intellectual capital as a strategy to integrate university functions in knowledge societies. Journal of Dom. Cien. 2017;3(4):327-353.
Tabachanick BJ, Fidell LS. Using Multivariate Statistics. Harper Collins Publishers, New York, NY; 1996.
Abstract View: 106 times
PDF Download: 33 times