Modeling the impact of intellectual capital on corporate performance

Abstract

Modern organizations build access and nurture knowledge resources to create competitive advantage Physical and financial resources have been eclipsed by knowledge resources to create value addition for organization there by creating sustainable knowledge advantage Market values of these companies bask in the glory of newly obtained star status with all its focus directed towards high valued intangible assets like intellectual capital human capital and social capital and so on Research in intellectual capital involves identification understanding and measuring of the above mentioned hidden factors Proponents of intellectual capital research opine that these invisible factors affect the performance of companies This dissertation assesses the analytical approach to measure the value creation efficiency of intellectual capital by using Ante Pulics Value added intellectual capital VAIC method The study is done on four major Indian industries which are heavily reliant on intellectual capital They include Banking, Software Electronics and Pharmaceutical industry