Invested resource, competitive intellectual capital, and corporate performance

Purpose – On the health care industry, the paper aims to study the effects of intellectual capital, identify using an input-process-output concept of human, customer, innovative and process capitals, on company performances. Design/methodology/approach – From a resource-based and intellectual capital perspective, the structural path model is applied to financial data to analyze the six-value creation relationships among the four components of intellectual capital, as well as the causal effects of intellectual capital on company performance. Findings – Empirical findings suggest a significant relationship between intellectual capital and company performance. These results also suggest that innovative capacity and process reformation shall be considered first, and through the human value-added of human capital, firms can improve their company’s performance. Originality/value – There have been many arguments as to whether intellectual capital is quantitatively measurable. This paper provides a tangible means of quantifying intellectual capital.