The cubic S-curve relationship between board independence and intellectual capital efficiency: does firm size matter?
Purpose – First, this study assesses the efficiency of linking intellectual capital (IC) components to firm performance. Second, this study examines (i) the cubic S-curve relationship between board independence and IC efficiency and (ii) how firm size moderates the cubic S-curve relationship. Desig...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Emerald Publishing Limited
2021
|
| Subjects: | |
| Online Access: | http://umpir.ump.edu.my/id/eprint/31597/1/Kweh%20et%20al.%20%282021%29_JIC%20in%20press_Cover.pdf |
| _version_ | 1796994640413458432 |
|---|---|
| author | Kweh, Qian Long Lu, Wen-Min Ting, Irene Wei Kiong Hanh, Le Thi My |
| author_facet | Kweh, Qian Long Lu, Wen-Min Ting, Irene Wei Kiong Hanh, Le Thi My |
| author_sort | Kweh, Qian Long |
| collection | UMP |
| description | Purpose – First, this study assesses the efficiency of linking intellectual capital (IC) components to firm performance. Second, this study examines (i) the cubic S-curve relationship between board independence and IC efficiency and (ii) how firm size moderates the cubic S-curve relationship.
Design/methodology/approach – This study employs a stochastic nonparametric envelopment of data (StoNED) framework to estimate IC efficiency, which is derived from the estimation process of transforming structural, relational, and human capitals into accounting- and market-based performance indicators. This study performs regression analyses on 1,104 firm-year observations of Taiwanese semiconductor firms over the period of 2011–2018.
Findings – StoNED results suggest that sample firms’ IC efficiency can be relatively improved by approximately 80%. Regression results indicate that a cubic S-curve relationship between board independence and IC efficiency is found, and firm size moderates the effects.
Practical implications – Overall, this study highlights the importance of considering the nonlinear effect of board independence on IC efficiency from the perspective of agency theory, and the moderating firm size, which may suggest availability of resources from the perspective of resource-based view of the firm.
Originality/value – This study contributes to the literature through the innovative application of an efficiency-based tool for evaluating IC management. The cubic S-curve relationship between board independence and IC efficiency also points to the policy concerning the appropriate number of independent directors on board. |
| first_indexed | 2024-03-06T12:50:41Z |
| format | Article |
| id | UMPir31597 |
| institution | Universiti Malaysia Pahang |
| language | English |
| last_indexed | 2024-03-06T12:50:41Z |
| publishDate | 2021 |
| publisher | Emerald Publishing Limited |
| record_format | dspace |
| spelling | UMPir315972022-04-13T04:56:13Z http://umpir.ump.edu.my/id/eprint/31597/ The cubic S-curve relationship between board independence and intellectual capital efficiency: does firm size matter? Kweh, Qian Long Lu, Wen-Min Ting, Irene Wei Kiong Hanh, Le Thi My HG Finance Purpose – First, this study assesses the efficiency of linking intellectual capital (IC) components to firm performance. Second, this study examines (i) the cubic S-curve relationship between board independence and IC efficiency and (ii) how firm size moderates the cubic S-curve relationship. Design/methodology/approach – This study employs a stochastic nonparametric envelopment of data (StoNED) framework to estimate IC efficiency, which is derived from the estimation process of transforming structural, relational, and human capitals into accounting- and market-based performance indicators. This study performs regression analyses on 1,104 firm-year observations of Taiwanese semiconductor firms over the period of 2011–2018. Findings – StoNED results suggest that sample firms’ IC efficiency can be relatively improved by approximately 80%. Regression results indicate that a cubic S-curve relationship between board independence and IC efficiency is found, and firm size moderates the effects. Practical implications – Overall, this study highlights the importance of considering the nonlinear effect of board independence on IC efficiency from the perspective of agency theory, and the moderating firm size, which may suggest availability of resources from the perspective of resource-based view of the firm. Originality/value – This study contributes to the literature through the innovative application of an efficiency-based tool for evaluating IC management. The cubic S-curve relationship between board independence and IC efficiency also points to the policy concerning the appropriate number of independent directors on board. Emerald Publishing Limited 2021-05-12 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/31597/1/Kweh%20et%20al.%20%282021%29_JIC%20in%20press_Cover.pdf Kweh, Qian Long and Lu, Wen-Min and Ting, Irene Wei Kiong and Hanh, Le Thi My (2021) The cubic S-curve relationship between board independence and intellectual capital efficiency: does firm size matter? Journal Of Intellectual Capital. ISSN 1469-1930. (Published) https://www.emerald.com/insight/publication/issn/1469-1930 https://doi.org/10.1108/JIC-08-2020-0276 |
| spellingShingle | HG Finance Kweh, Qian Long Lu, Wen-Min Ting, Irene Wei Kiong Hanh, Le Thi My The cubic S-curve relationship between board independence and intellectual capital efficiency: does firm size matter? |
| title | The cubic S-curve relationship between board independence and intellectual capital efficiency: does firm size matter? |
| title_full | The cubic S-curve relationship between board independence and intellectual capital efficiency: does firm size matter? |
| title_fullStr | The cubic S-curve relationship between board independence and intellectual capital efficiency: does firm size matter? |
| title_full_unstemmed | The cubic S-curve relationship between board independence and intellectual capital efficiency: does firm size matter? |
| title_short | The cubic S-curve relationship between board independence and intellectual capital efficiency: does firm size matter? |
| title_sort | cubic s curve relationship between board independence and intellectual capital efficiency does firm size matter |
| topic | HG Finance |
| url | http://umpir.ump.edu.my/id/eprint/31597/1/Kweh%20et%20al.%20%282021%29_JIC%20in%20press_Cover.pdf |
| work_keys_str_mv | AT kwehqianlong thecubicscurverelationshipbetweenboardindependenceandintellectualcapitalefficiencydoesfirmsizematter AT luwenmin thecubicscurverelationshipbetweenboardindependenceandintellectualcapitalefficiencydoesfirmsizematter AT tingireneweikiong thecubicscurverelationshipbetweenboardindependenceandintellectualcapitalefficiencydoesfirmsizematter AT hanhlethimy thecubicscurverelationshipbetweenboardindependenceandintellectualcapitalefficiencydoesfirmsizematter AT kwehqianlong cubicscurverelationshipbetweenboardindependenceandintellectualcapitalefficiencydoesfirmsizematter AT luwenmin cubicscurverelationshipbetweenboardindependenceandintellectualcapitalefficiencydoesfirmsizematter AT tingireneweikiong cubicscurverelationshipbetweenboardindependenceandintellectualcapitalefficiencydoesfirmsizematter AT hanhlethimy cubicscurverelationshipbetweenboardindependenceandintellectualcapitalefficiencydoesfirmsizematter |