How Intellectual Capital Combination Method Can Improve Corporate Performance in China's Information Technology Industry

Abstract

This study aims to illustrate how intellectual capital (IC) dimensions can improve corporate performance, and explore ideal IC combination methods in diversified firm situations to distribute IC dimensions effectively with limited resources. A universal theoretical framework based on Balanced Scorecard (BSC) theory is proposed to illustrate the way in which IC dimensions can enhance corporate performance from the perspective of stakeholders. Then, the rough set method is introduced to empirically explore ideal IC combination methods in diversified situations using 539 valid samples from China's information technology industry. The theoretical analysis shows that IC dimensions work as a combination rather than as isolated parts to affect corporate performance, and different levels of corporate performance can be achieved by different IC combination methods under diverse firm factors. Ideal IC combination method is obtained through empirical study. Relational capital is the most important IC dimension, whereas leverage is the most important influence factor. This study extends IC management theory by profoundly illustrating the internal logical between IC dimensions and corporate performance through the theoretical framework. Additionally, this study introduces the rough set method to IC empirical research to explore ideal IC combination methods. Findings will deepen insight of practitioners about the essence of IC dimension combinations to corporate performance, and how they can apply the IC combination results to effectively distribute IC resources in diversified firm situations. The theoretical and practical research of this study extends both the third and fourth stages of IC research.