Impact of knowledge-based capital on firm productivity: The contingent effect of ownership

Using account data from an unbalanced panel of Chinese listed companies from 2013 to 2018, this study examines the productivity effect of knowledge-based capital (KBC) and its three subcategories, which include computerised information, innovative property, and economic competency, as well as the contingent effects of ownership. Our findings show that first KBC has a positive effect on firm productivity and that only computerised information and economic competency contribute significantly to firm productivity among the subcategories. Second, KBC's productivity gains are linked to firm ownership. KBC utilisation in SOEs is less efficient than in private firms, and computerised information only affects the productivity of SOEs. Third, across different samples, the most significant effect is generated by economic competency, which is primarily driven by organisational capital and brand equity, but this is not robust in SOEs. The findings highlight the importance of carefully assessing the productivity-enhancing effects of various KBC items.