Does intellectual capital matter to MFIs’ financial sustainability?

Purpose This paper examines the effect of intellectual capital (IC) on financial sustainability microfinance institutions (MFIs). The study is motivated by increased calls for MFIs to be self-sustainable and growing importance knowledge-based assets as contributors competitive advantage sustained performance. Design/methodology/approach With a global sample 444 data 2013–2018, which yielded 2,664 MFIs-year observations, this IC MFIs’ sustainability. are extracted from MIX Market database. Value added coefficients used proxy measures IC. Operational self-sufficiency measure Data analyzed using three-panel estimation models: fixed effect, random dynamic panel system generalized method moments. Findings results show that human efficiency employed have positive significant MFIs. However, structural has significantly negative These confirm relative both tangible intangible important Research limitations/implications focused association between Therefore, examining nonfinancial institution may validate contributions study. Practical implications Based findings, managers encouraged leverage IC, physical attain In particular, should invest in employees training development. Additionally, owing relationship sustainability, there need policy interventions ensure access adequate funding. further recommends mandatory disclosure among Originality/value first investigate MFIs; therefore, it lays an empirical ground future studies.