Intellectual capital efficiency and firm performance: evidence from an emerging knowledge-economy

The current study, based on the listed companies of Bangladesh, aims to frame the affinity between intellectual capital (IC) efficiency and different dimensions of business performance - financial, market, and economic. This study measured IC efficiency by adopting 'value-added intellectual coefficient' (VAIC) approach which estimates companies' value addition capability considering physical capital, human capital, and structural capital. Using the lens of the resource-based view (RBV), the underlying study observes a positive connection of VAIC with companies' financial and economic performance, whereas it is non-significant with market valuation. The study also reveals that among VAIC components, efficiency of physical capital is the most influential element for predicting business performance. Finally, the present research recommends that concentrating on intellectual resources as a substitute for tangible resources can uplift companies' overall performance.