Intellectual capital and firm performance in Vietnam 2012-2016

The aim of the study is to investigate the relationship between intellectual capital and firm performance. We empirically explore how intellectual capital affects firm performance in Vietnam. The data was collected through annual enterprise surveys by the General Statistics Office of Vietnam on a sample of 13,900 Vietnamese firms during 2012-2016. Adopting Pulic's (1998) value-added intellectual coefficient model as later refined, we model a path between intellectual capital and firm performance. Results show that intellectual capital correlated positively with firm performance during the period. Further, human capital correlates positively only with business performance, material capital, and financial capital in the short-term. Among components of intellectual capital efficiency, structural capital efficiency has the greatest positive correlation with short and long-term firm performance. Although there are some limitations to measure intellectual capital quantitatively, this research provides further insight into the effect of intellectual capital on firm performance within a developing country.