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Appears in:
Pages: 3351-3366
Publication year: 2013
ISBN: 978-84-616-2661-8
ISSN: 2340-1079

Conference name: 7th International Technology, Education and Development Conference
Dates: 4-5 March, 2013
Location: Valencia, Spain

THE EFFICIENCY OF INTELLECTUAL CAPITAL IN CREATING VALUE TO COMPANY PERFORMANCE AMONG MALAYSIAN TECHNOLOGY COMPANIES

S. Sofian, S.F. Shabudin

Universiti Teknologi Malaysia (MALAYSIA)
In today’s knowledge-based economy and innovation age, intellectual capital (IC) plays a vital role to achieve firm’s competitive advantage. IC can be defined as intangible assets comprising technology, brand name, corporate culture, customer information, etc. IC is divided into human capital, structural capital, relational capital, and spiritual capital. This study was conducted to investigate the IC efficiency in creating value among technology companies in Malaysia. The objectives of the study were to measure the IC efficiency among the companies, to identify the most efficient IC elements, and to examine the relationship between IC efficiency and company performance. Data from annual reports of 29 technology companies listed in the Main Board of Bursa Malaysia (Malaysian Bourse) were analysed using VAIC to measure IC efficiency while the company performance was measured by using return on assets ratio (ROA). Pearson’s Correlation was employed to examine the relationship between the companies’ IC efficiency and their performance. For the purpose of applying VAIC, spiritual capital was not included. The findings indicate that the most efficient IC element among the Malaysian technology companies is human capital, in average the companies generate RM2.17 return on each RM1 invested, and there is a positive and significant relationship between their IC efficiency and their performance. Based on the findings, it is concluded that IC efficiency is creating value for the companies and it is recommended that the companies manage their IC effectively to increase their performance.
@InProceedings{SOFIAN2013EFF,
author = {Sofian, S. and Shabudin, S.F.},
title = {THE EFFICIENCY OF INTELLECTUAL CAPITAL IN CREATING VALUE TO COMPANY PERFORMANCE AMONG MALAYSIAN TECHNOLOGY COMPANIES},
series = {7th International Technology, Education and Development Conference},
booktitle = {INTED2013 Proceedings},
isbn = {978-84-616-2661-8},
issn = {2340-1079},
publisher = {IATED},
location = {Valencia, Spain},
month = {4-5 March, 2013},
year = {2013},
pages = {3351-3366}}
TY - CONF
AU - S. Sofian AU - S.F. Shabudin
TI - THE EFFICIENCY OF INTELLECTUAL CAPITAL IN CREATING VALUE TO COMPANY PERFORMANCE AMONG MALAYSIAN TECHNOLOGY COMPANIES
SN - 978-84-616-2661-8/2340-1079
PY - 2013
Y1 - 4-5 March, 2013
CI - Valencia, Spain
JO - 7th International Technology, Education and Development Conference
JA - INTED2013 Proceedings
SP - 3351
EP - 3366
ER -
S. Sofian, S.F. Shabudin (2013) THE EFFICIENCY OF INTELLECTUAL CAPITAL IN CREATING VALUE TO COMPANY PERFORMANCE AMONG MALAYSIAN TECHNOLOGY COMPANIES, INTED2013 Proceedings, pp. 3351-3366.
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