Intellectual capital and performance: testing interaction effects
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Date
2010
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of intellectual capital
Abstract
The purpose of this paper is to examine the interaction effect of intellectual capital
elements and how they fuse to affect financial performance in microfinance institutions. The major
purpose is to explore the appropriate blend or mix of intellectual capital elements that explains the
source of value creation – hence performance – in microfinance institutions.
Design/methodology/approach – The paper adopts the ModGraph program (Excel version) along
with the Kenny and Boran approach to test conditional hypotheses.
Findings – The magnitude effect of human capital on performance depends on any of structural or
relational capital; hence the assumption of nonadditivity is met. However, no significant interaction
effects were established between relational and structural capital.
Research limitations/implications – Only a single research methodological approach was
employed and future research through interviews could be undertaken to triangulate. Furthermore, the
findings from the present study are cross-sectional – future research should be undertaken to examine
the multiplicative effects studied in this paper across time
Practical implications – In order to boost the wealth of microfinance institutions in Uganda,
managers should always endeavor to find a viable intellectual capital mix or blend that can add value
to the firm.
Originality/value – This is the first study that focuses on testing the interactive effects of
intellectual capital elements on financial performance in Ugandan microfinance institutions.
Description
Keywords
Intellectual capital, Financial institutions, Social interaction, Financial performance, Uganda
Citation
Kamukama, N., Ahiauzu, A., & Ntayi, J. M. (2010). Intellectual capital and performance: testing interaction effects. Journal of intellectual capital. DOI 10.1108/14691931011085687