Do Intellectual Capital Elements Spur Firm Performance? Evidence from the Textile and Apparel Industry in China

This paper examines how investment in intellectual capital (IC) elements by textile and apparel companies improves firm performance measured terms of profitability, market value, productivity. The modified value-added coefficient (MVAIC) model is applied to measure IC. Using a panel 35 Chinese for six-year period (2013–2018), the results show that physical human capitals are strong factors contribute performance. In addition, relational negatively influences profitability structural innovation have negative impact on employee We also find MVAIC performs better measuring IC than original (VAIC) model. can provide some insights corporate managers enhance gain competitive advantage proper utilization traditional industries.