MEASURING THE IMPACT OF INTELLECTUAL CAPITAL ON FIRM PERFORMANCE IN THE INFORMATION TECHNOLOGY SECTOR: THE IMPORTANCE OF INNOVATION CAPITAL

Authors : Seda Erdoğan, Mihriban Coşkun Arslan

Pages : 202-242

View : 40 | Download : 53

Publication Date : 2024-10-26

Article Type : Other Papers

Abstract :Intellectual capital is defined as using all kinds of knowledge, expertise, experience, and intellectual property to create value in businesses. Therefore, intellectual capital is considered one of the critical drivers for competition and value creation among firms in today\'s conditions, where the knowledge economy dominates. Measuring every asset that generates value within the business and analyzing its impact on financial performance has become one of the essential issues. This study examines the effect of intellectual capital on firm performance and the relationship between innovation investments and firm performance. The primary aim of this study is to comprehensively analyze how innovation capital affects the relationship between intellectual capital and firm performance. The research examined the effects of intellectual capital components on firm performance while evaluating how innovation capital alters and strengthens this relationship. The intellectual capital performance of information technology firms operating in Turkey, listed on the Borsa Istanbul (BİST), and including R&D expenses in their financial reports between 2010 and 2022, was measured. According to the study results, the efficiency of physical capital, human capital, structural capital, and innovation capital positively affected return on assets (ROA). It was determined that the efficiency of physical capital, human capital, and innovation capital positively impacted return on equity (ROE). Additionally, it was found that the efficiency of physical capital, human capital, and innovation capital positively influenced earnings per share (EPS), while structural capital efficiency negatively affected it. Finally, it was determined that the efficiency of human capital and innovation capital positively impacted the price-to-book (P/B) ratio, and the efficiency of structural capital positively affected asset turnover (ACS) and value-added (VA).
Keywords : Entelektüel Sermaye, İnovasyon, Firma Performansı, Bilişim Sektörü