Exploring the impact of intellectual capital on company reputation and performance
In: Journal of intellectual capital, Band 19, Heft 5, S. 915-934
ISSN: 1758-7468
PurposeThe purpose of this paper is to analyse the impact of intellectual capital (IC) on the reputation and performance of Italian companies.Design/methodology/approachThe paper exploits a unique data set of 452 non-listed companies that obtained a reputational assessment from the Italian Competition Authority (ICA). To test the hypotheses, this study implemented several regression analyses.FindingsResults support the argument that human capital efficiency is a key driver of corporate reputation. Findings also reveal that companies, which obtained reputational rating under ICA scrutiny, show a positive relationship between IC elements and various measures of financial performance.Research limitations/implicationsThe study focuses on a single country; it is not free from the imprecisions of Pulic's VAIC model.Practical implicationsThis paper recommends companies that are interested to achieve a robust reputation should consider the human capital as a strategic intangible asset. Second, the results suggest that companies with an ICA reputational rating are able to leverage their intangibles to potentiate performance and competitiveness.Originality/valueThis is the first empirical investigation on the contribution of IC in generating value for corporate reputation. Additionally, the study contributes to the literature on the link between IC and performance by examining a sample of firms not yet explored in prior research.