Mediating Role of Competitive Advantage on Intellectual Capital and Firm Performance
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Abstract
Competitive advantage, a key factor for organizational success and growth in the digital era, poses a challenge to the executives in terms of operational process improvement in order to maximize the firm’s performance while considering innovation and the impacts arising from applying financial reporting standards. This study aimed to examine the influence of intellectual capital on company operations and the influence of intellectual capital on company operations through competitive advantage. The sample group consisted of 164 companies in the service group listed on the Stock Exchange of Thailand. Their financial data between 2019 and 2020 was collected. The statistics used in the data analysis were descriptive, inferential statistics, structural equation models, and path analysis. The Modified Value-Added Intellectual Coefficient (MVAIC) was used to measure intellectual capital's efficiency. The study found that intellectual capital did not affect performance measured by return on equity. With the Baron & Kenny 1986 method, competitive advantage measured by revenue growth was found to influence the association between intellectual capital and firm performance indirectly. Thus, competitive advantage was considered a full mediator. The results support the Resource-Based View Theory and reflect that applying intellectual capital in an organization can add value while generating returns to shareholders and a competitive advantage in the form of innovation, consistent with the digital age.
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