Performance of intellectual capital in Indian healthcare sector

Sriranga Vishnu and Vijay Kumar Gupta

International Journal of Learning and Intellectual Capital, 2015, vol. 12, issue 1, 47-60

Abstract: Measurement of intellectual capital efficiency and its impact on the financial performance of companies is a commonly researched domain. A significant section of researchers have used the Value Added Intellectual Coefficient (VAIC™) model - an accounting data-based measurement model, for this purpose. However, the contemporary literature criticises this model for non-inclusion of relational capital and perfect interdependency between intellectual capital components. This study addresses these shortcomings by presenting an extended and modified version of the VAIC™ model. Relational capital has been added as a new variable. This new model has been tested on the healthcare firms of India. A comparative analysis of the two models has also been done. Regression results do not encourage the inclusion of relational capital in VAIC™. During comparative study, the coefficient of determination values suggest that the proposed model may be preferred over VAIC™ for all the three performance variables - return on assets, return on equity and return on sales. These findings have academic as well as practical implications.

Keywords: healthcare sector; India; intellectual capital; efficiency measurement; financial performance; regression; relational capital; return on assets; ROA; return on equity; ROE; return on sales; ROS; value added intellectual coefficient model; VAIC; modelling. (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (4)

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