How Does Intellectual Capital Affect the Financial Performance of Micro, Small, and Medium-Sized Hotel Companies?
Abstract
Theoretical background: Intellectual capital is often considered a critical resource, especially for micro, small, and medium-sized, as well as service companies. Human, structural, and relational capital are often listed as the main components of intellectual capital. This study complements the studies on the impact of intellectual capital and its components on the financial performance of hotel companies in developing economies.
Purpose of the article: The study aims to examine the impact of the efficiency of intellectual capital and its components on the financial performance of micro, small, and medium-sized hotel companies in Serbia. The results of the study can be of importance for hotel managers in their efforts to make adequate business decisions and improve the financial performance of hotel companies.
Research methods: The sample includes 100 micro, small, and medium-sized hotel companies from Serbia with the highest operating revenues in 2019. The efficiency of the intellectual capital and its components is measured by using the modified value-added intellectual coefficient (MVAIC). Financial performance is measured by using the natural logarithm of earnings before interest, taxes, depreciation, and amortization (EBITDA), EBITDA margin, return on assets (ROA) and return on equity (ROE). Ordinary least squares regression is used to examine the impact of intellectual capital and its components on the financial performance of sample hotel companies from 2015 to 2019.
Main findings: The results of the study show that intellectual capital efficiency has a positive impact on all four measures of financial performance. They also show that structural capital has the greatest impact on financial performance and that only this component of intellectual capital has a positive impact on all four measures of financial performance. Capital employed has a positive impact on the natural logarithm of EBITDA and ROE, while human capital has a positive impact on the EBITDA margin and a negative on the natural logarithm of EBITDA. Relational capital has a positive impact only on ROA.
Keywords
Full Text:
PDFReferences
Bianchi Martini, S., Corvino, A., Doni, F., & Rigolini, A. (2016). Relational capital disclosure, corporate reporting and company performance: Evidence from Europe. Journal of Intellectual Capital, 17(2), 186–217. doi:10.1108/JIC-07-2015-0065
Bontis, N., Dragonetti, N.C, Jacobsen, K., & Roos, G. (1999). The knowledge toolbox: A review of the tools available to measure and manage intangible resources. European Journal of Management, 17(4), 391–402. doi:10.1016/S0263-2373(99)00019-5
Bontis, N., Janošević, S., & Dženopoljac, V. (2015). Intellectual capital in Serbia’s hotel industry. International Journal of Contemporary Hospitality Management, 27(6), 1365–1384. doi:10.1108/IJCHM-12-2013-0541
Buallay, A., Cummings, R., & Hamdan, A. (2019). Intellectual capital efficiency and bank’s performance: A comparative study after the global financial crisis. Pacific Accounting Review, 31(4), 672–694. doi:10.1108/PAR-04-2019-0039
Cañibano, L., García-Ayuso, M., & Sánchez, P. (2000). Accounting for intangibles: A literature review. Journal of Accounting Literature, 19(1), 102–130.
Chen, C.M., Cheng, S.J., & Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. Journal of Intellectual Capital, 6(2), 159–176. doi:10.1108/14691930510592771
Chien, S.H., & Chao, M.H. (2011). Intellectual capital and new product sale performance of the financial services industry in Taiwan. Service Industries Journal, 31(16), 2641–2659. doi:10.1080/02642069.2010.506572
Costa, V., Silva, L., & Loureiro, P. (2020). Intellectual capital and its impact on business performance: An empirical study of Portuguese hospitality and tourism sectors. Intangible Capital, 16(2), 78–89. doi:10.3926/ic.1550
Dalwai, T., & Mohammadi, S.S. (2020). Intellectual capital and corporate governance: An evaluation of Oman’s financial sector companies. Journal of Intellectual Capital, 21(6), 1125–1152. doi:10.1108/JIC-09-2018-0151
Demartini, M.C., & Beretta, V. (2020). Intellectual capital and SMEs performance: A structured literature review. Journal of Small Business Management, 58(2), 288–332. doi:10.1080/00472778.2019.1659680
Dženopoljac, V., Yaacoub, C., Elkanj, N., & Bontis, N. (2017). Impact of intellectual capital on corporate performance: Evidence from the Arab region. Journal of Intellectual Capital, 18(4), 884–903. doi:10.1108/JIC-01-2017-0014
Eckstein, C. (2004). The measurement and recognition of intangible assets: Then and now. Accounting Forum, 28(2), 139–158. doi:10.1016/j.accfor.2004.02.001
Engström, T., Westnes, P., & Westnes, S.F. (2003). Evaluating intellectual capital in the hotel industry. Journal of Intellectual Capital, 4(3), 287–303. doi:10.1108/14691930310487761
Firer, S., & Williams, M. (2003). Intellectual capital and traditional measures of corporate performance. Journal of Intellectual Capital, 4(3), 348–360. doi:10.1108/14691930310487806
Ginesti, G., Caldareli, A., & Zampella, A. (2018). Exploring the impact of intellectual capital on company reputation and performance. Journal of Intellectual Capital, 19(5), 915–934. doi:10.1108/JIC-01-2018-0012
Gomezelj Omerzel, D., & Smolčić Jurdana, D. (2016). The influence of intellectual capital on innovativeness and growth in tourism SMEs: Empirical evidence from Slovenia and Croatia. Economic Research, 29(1), 1075–1090. doi:10.1080/1331677X.2016.1211946
Hair, J.F., Black, W., Babin, B., Anderson, R.E., & Tatham, R.L. (2005). Multivariate Data Analysis. Hoboken: Prentice Hall.
Haris, M. Yao, H.X., Tariq, G., Malik, A., & Javaid, H.M. (2019). Intellectual capital performance and profitability of banks: Evidence from Pakistan. Journal of Risk and Financial Management, 12(2), 56. doi:10.3390/jrfm12020056
Kaplan R.S., & Norton, D.P. (2004). Measuring the strategic readiness of intangible assets. Harvard Business Review, 82(1), 52–63.
Kianto, A., Hurmelinna-Laukkanen, P., & Ritala, P. (2010). Intellectual capital in service- and product-oriented companies. Journal of Intellectual Capital, 11(3), 305–325. doi:10.1108/14691931011064563
Kim, T.T., Kim, W. G., Park, S.S.S., Lee, G., & Jee, B. (2012). Intellectual capital and business performance: What structural relationships do they have in upper-upscale hotels? International Journal of Tourism Research, 14, 391–408. doi:10.1002/jtr.1868
Komnenić, B., & Pokrajčić, D. (2012). Intellectual capital and corporate performance of MNCs in Serbia. Journal of Intellectual Capital, 13(1), 106–119. doi:10.1108/14691931211196231
Krstić, B. (2009). Intelektualni kapital i konkurentska prednost preduzeća [Intellectual capital and competitive advantages of companies]. Niš: Faculty of Economics of the University of Niš.
Kuźmicki, M. (2019). Modern information and communication technologies in the market of hotel services. Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia, 53(1), 39–48. doi:10.17951/h.2019.53.1.39-48
Li, X., Nosheen, S., Haq, N.U., & Gao, X. (2021). Value creation during fourth industrial revolution: Use of intellectual capital by most innovative companies of the world. Technological Forecasting and Social Change, 163, 120479. doi:10.1016/j.techfore.2020.120479
Maditions, D., Chatzoudes, D., Tsairidis, C., & Theriou, G. (2011). The impact of intellectual capital on firms’ market value and financial performance. Journal of Intellectual Capital, 12(1), 132–151. doi:10.1108/14691931111097944
Mandarić, M., Sekulić, D., & Davidson, R. (2022). A study of the influence of the COVID-19 pandemic on tourist behaviour and expectations: A case of Serbia. Hotel and Tourism Management, 10(1), 53–65. doi:10.5937/menhottur2201053M
Maria Diez, J., Lizet Ochoa, M., Begona Prieto, M., & Santidrian, A. (2010). Intellectual capital and value creation in Spanish firms. Journal of Intellectual Capital, 11(3), 348–367. doi:10.1108/14691931011064581
Marr, B., & Mustaghfir, K. (2005). Defining intellectual capital: A three-dimensional approach. Management Decision, 43(9), 1114–1128. doi:10.1108/00251740510626227
Martín-de Castro, G., Díez-Vial, I., & Delgrado-Verde, M. (2019). Intellectual capital and the firm: evolution and research trends. Journal of Intellectual Capital, 20(4), 555–580. doi:10.1108/JIC-12-2018-0221
Marzo, G., & Scarpino, E. (2016). Exploring intellectual capital management in SMEs: An in-depth Italian case study. Journal of Intellectual Capital, 17(1), 27–51. doi:10.1108/JIC-09-2015-0075
Mention, A.L., & Bontis, N. (2013). Intellectual capital and performance within the banking sector of Luxembourg and Belgium. Journal of Intellectual Capital, 14(2), 286–309. doi:10.1108/14691931311323896
Mondal, A., & Ghosh, S.K. (2012). Intellectual capital and financial performance of Indian banks. Journal of Intellectual Capital, 13(4), 515–530. doi:10.1108/14691931211276115
Nemec-Rudež, H., & Mihalič, T. (2007). Intellectual capital in the hotel industry: A case study from Slovenia. International Journal of Hospitality Management, 26(1), 188–199. doi:10.1016/j.ijhm.2005.11.002
Ognjanović, J. (2016). Intellectual capital in hotel companies. In D. Cvijanović, A. Grigorievna Ivolga, P. Ružić, D. Gnjatović & T. Stanišić (Eds.), Tourism in Function of Development of the Republic of Serbia. Spa Tourism in Serbia and Experiences of Other Countries (pp. 430–447). Kragujevac: Faculty of Hotel Management and Tourism in Vrnjačka Banja of the University of Kragujevac.
Ognjanović, J. (2020). Employer brand and workforce performance in hotel companies. Hotel and Tourism Management, 8(2), 65–78. doi:10.5937/menhottur2002065O
Pallant, J. (2007). SPSS Survival Manual: A Step by Step Guide to Data Analysis Using SPSS for Windows. Maidenhead: Open University Press.
Pantelić, M., Radić, S., & Živanović, M. (2020). Impact of human and relative capital on the profitability of commercial banks in Serbia. Ekonomika preduzeća, 68(5–6), 305–318.
Peković, J., Pavlović, G., & Zdravković, S. (2020). The influence of intellectual capital on financial performance of commercial banks in the Republic of Serbia. Ekonomika, 66(2), 103–111.
Pucar, S. (2012). The influence of intellectual capital on export performance. Journal of Intellectual Capital, 13(2), 248–261. doi:10.1108/14691931211225715
Ruiz-Fernández, L., Marco-Lajara, B., & Seva-Larrosa, P. (2023). The U-shaped relationship between intellectual capital and hotel performance: The moderating effect of managerial gender. Current Issues in Tourism. Advanced online publication. doi:10.1080/13683500.2023.2195998
Ruiz-Valenzuela, J. (2020). Intergenerational effects of employment protection reforms. Labor Economics, 62, 101774. doi:10.1016/j.labeco.2019.101774
Sardo, F., Serrasqueiro, Z., & Alves, H. (2018). On the relationship between intellectual capital and financial performance: A panel data analysis on SME hotels. International Journal of Hospitality Management, 75, 67–74. doi:10.1016/j.ijhm.2018.03.001
Slavković, M., & Ognjanović, J. (2018). Impact of human capital on business performance of hotel enterprises in Serbia. TEME, 42(4), 1339–1355.
Smuda-Kocoń, M. (2022). Mapping the areas of research on intellectual capital throughout a period of dynamic environmental changes. Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia, 56(2), 113–129. doi:10.17951/h.2022.56.2.113-129
Stewart, T.A. (1997). Intellectual Capital: The New Wealth of Organizations. New York: Doubleday.
Sullivan, P.H. (2000). Value-Driven Intellectual Capital: How to Convert Intangible Corporate Assets into Market Value. New York: John Wiley & Sons.
Ting, I.W.K., & Lean, H.H. (2009). Intellectual capital performance of financial institutions in Malaysia. Journal of Intellectual Capital, 10(4), 588–599. doi:10.1108/14691930910996661
Todorović, M., & Čupić, M. (2017). How does 5s implementation affect company performance? A case study applied to a subsidiary of a rubber goods manufacturer from Serbia. Engineering Economics, 28(3), 311–322. doi:10.5755/j01.ee.28.3.16115
Todorović, M., & Čupić, M. (2023). Effects of ERP on accounting information system: Analysis of accountants’ attitudes. In S. Benković, A. Labus & M. Milosavljević (Eds.), Digital Transformation of the Financial Industry (pp. 1–17). Cham: Springer. doi:10.1007/978-3-031-23269-5_1
Vale, J.A.F.L.O., Vale, V.C.F.T., & Lopes, V.S.C. (2022). Intellectual capital efficiency and financial performance in the hotel sector. International Journal of Learning and Intellectual Capital, 19(1), 53–71. doi:10.1504/IJLIC.2022.119276
Vidotto, J.D.F., Ferenhof, H.A., Selig, P.M., & Bastos, R.C. (2017). A human capital measurement scale. Journal of Intellectual Capital, 18(2), 316–329. doi:10.1108/JIC-08-2016-0085
World Bank. (2022). Serbia. Retrieved from https://data.worldbank.org/country/RS
Xu, J., & Li, J.S. (2019). The impact of intellectual capital on SMEs’ performance in China: Empirical evidence from non-high-tech vs. high-tech SMEs. Journal of Intellectual Capital, 20(4), 488–509. doi:10.1108/JIC-04-2018-0074
Xu, J., & Wang, B. (2018). Intellectual capital, financial performance and companies’ sustainable growth: Evidence from the Korean manufacturing industry. Sustainability, 10, 2345. doi:10.3390/su10124651
Xu, J., & Wang, B. (2019). Intellectual capital performance of the textile industry in emerging markets: A comparison with China and South Korea. Sustainability, 11, 2354. doi:10.3390/su11082354
Zeglat, D., & Zigan, K. (2014). Intellectual capital and its impact on business performance: Evidences from the Jordanian hotel industry. Tourism and Hospitality Research, 13(2), 83–100. doi:10.1177/1467358413519468
Zéghal, D., & Maaloul, A. (2010). Analysing value added as an indicator of intellectual capital and its consequences on company performance. Journal of Intellectual Capital, 11(1), 39–60. doi:10.1108/14691931011013325
Złoty, M. (2018). Factors influencing the innovativeness of the global economy in the 21st century. Annales Universitatis Mariae Curie-Skłodowska, sectio H – Oeconomia, 52(4), 143–151. doi:10.17951/h.2018.52.4.143-151
DOI: http://dx.doi.org/10.17951/h.2023.57.3.81-98
Date of publication: 2023-12-11 07:08:18
Date of submission: 2023-03-20 19:24:41
Statistics
Indicators
Refbacks
- There are currently no refbacks.
Copyright (c) 2023 Milan Čupić
This work is licensed under a Creative Commons Attribution 4.0 International License.