Intellectual capital and financial performance: a comparative analysis of VAIC models in Ecuadorian banking

Abstract

In an increasingly knowledge-driven economy, intellectual capital (IC) has become a critical driver of financial performance, particularly in the banking sector. Despite extensive research on IC measurement models such as the Value-Added Intellectual Coefficient (VAIC), there remains no consensus regarding their effectiveness and applicability across contexts. This study addresses two key gaps: (1) limited empirical evidence from Latin America, particularly Ecuador, and (2) the ongoing debate about the most effective modifications to the VAIC model. Using a comparative analysis of three VAIC-based models—M-VAIC, extended-VAIC, and m-VAIC—this research examines the influence of IC components on the financial performance of Ecuadorian banks from 2017 to 2022. The findings reveal that human capital efficiency (HCE) and capital employed efficiency (CEE) consistently influence financial performance, while other components, such as structural, relational, and innovation capital efficiency, show mixed results. These insights contribute to the literature by offering a nuanced understanding of IC’s role in a concentrated and highly regulated banking sector. The study also provides practical implications for bank managers seeking to optimize IC strategies. By comparing multiple VAIC models, this research highlights the strengths and limitations of each approach and supports the development of more robust tools for measuring IC.