Intellectual Capital and Financial Performance of Chinese Manufacturing SMEs: An Analysis from the Perspective of Different Industry Types

Lujing Liu, Jiyue Zhang, Jian Xu () and Yiqun Wang
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Lujing Liu: School of Economics and Management, Qingdao Agricultural University, Qingdao 266109, China
Jiyue Zhang: School of Economics and Management, Qingdao Agricultural University, Qingdao 266109, China
Jian Xu: School of Economics and Management, Qingdao Agricultural University, Qingdao 266109, China
Yiqun Wang: School of Economics and Management, Qingdao Agricultural University, Qingdao 266109, China

Sustainability, 2022, vol. 14, issue 17, 1-17

Abstract: In the knowledge era, intellectual capital (IC) has been recognized as the determinant of firm performance. The main goal of the current study is to analyze the relationship between IC and its elements and financial performance of Chinese manufacturing small and medium-sized enterprises (SMEs). We also examine whether industry type has an impact on this relationship. This study uses the data of 588 Chinese listed SMEs in the manufacturing industry between 2015 and 2020 and employs the modified value-added intellectual coefficient (MVAIC) model to assess IC. The results show that IC improves SMEs’ financial performance, and physical and human capitals are the main contributor. In addition, the impact of IC and its elements on the financial performance of Chinese manufacturing SMEs is different in different types of industries. Specifically, capital-intensive SMEs have a greater impact of IC on financial performance than labor- and technology-intensive SMEs; labor-intensive SMEs have a higher efficiency of physical capital, while technology-intensive SMEs have higher human capital efficiency. The findings could help SMEs’ managers improve corporate performance by the effective utilization of their IC.

Keywords: intellectual capital; financial performance; manufacturing SMEs; industry type (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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