Intellectual Capital Efficiency of Indian Firms: An Empirical Analysis
The IUP Journal of Knowledge Management, Vol. XV, No. 3, July 2017, pp. 44-65
Posted: 6 Aug 2018
Date Written: July 2017
The term ‘intellectual capital’ is normally taken as a misnomer, often understood to be of relevance to only high-technology industries and information and communication technology companies. But, it is important to understand that intellectual capital is essentially relevant to every business organization. Rapid technology advancements, fiercely competitive environments, deregulations, product innovations, etc., have made firms increasingly rely on leveraging intellectual capital, so as to develop strategies for sustained competitive advantage. Management initiatives to execute business strategy can be extracted from firm’s intellectual capital to deliver value. Management of intellectual capital and knowledge management practices can result in significant benefits to an organization that can aid in formulation of business strategy, process design as well as gaining competitive advantage. However, there is limited empirical evidence revealing mixed results of the impact of intellectual capital on financial performance of business in India. Thus, the present study has been undertaken as an attempt to provide important insight into measurement of intellectual capital of publicly listed companies in India and its impact on financial performance.
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