Intellectual Capital Efficiency, Innovation Capital and Performance in Malaysian Technology Firm's.

In the era of knowledge-based economy, intellectual capital has been considered as an important factor for the competitiveness of many companies. Previous studies have proved that intellectual capital plays an important role in creating corporate sustainable competitive advantages. Intellectual capital which consists of a set of intangibles drives the organizational performance and value creation. Therefore, it is important to understand whether the resource is being efficiently utilized by the companies to their advantage, especially in creating the value over time. The purpose of this study is to empirically examine the relationship between intellectual capital efficiency and its components namely human capital efficiency, capital employed efficiency and structural capital efficiency. Value Added Intellectual Coefficient called VAIC™ developed by Ante Pulic will be used to measure the intellectual capital efficiency. This study also investigates the moderating effect of innovation capital on the intellectual capital efficiency and firms' performance. Using the accounting data, it reviews the annual reports of all technology companies listed under Main Market and Ace Market of Bursa Malaysia in year 2009.Due to the mix results in previous studies, it encourages the researchers to conduct such study and conclude these relationships. Correlation and regression analysis have been conducted on the collected data. The results indicate that intellectual capital efficiency has significant and positive relationships with firm's performance measured by Return on Assets (ROA). The results will extend the understanding of the role of intellectual capital efficiency and innovation capital in enhancing the performance of companies in the developing countries. Additionally, the findings from this study may serve as a useful input for companies, investors, scholars and managers to better understand the implication of intellectual capital efficiency and innovation capital to the firm's performance. As a result, it will enhance the concept of intellectual capital efficiency in emerging economies such as Malaysia. [ABSTRACT FROM AUTHOR]