Value-driven System Of Intellectual Capital

The objective of this study analyzes the effects of intellectual capital on financial performance that anticipated within the Taiwanese high-tech industry.The sample selection of this research is IT industry companies that list on Taiwan Stock Exchange (TSE).This work draws upon the recent literature concerning the intellectual capital theory and,more specifically,how this may influence financial performance in the high-tech industry.Also,this work proposes the value-driven system for the intellectual capital.The study is comprised of two stages.First,identifying the measurement indicators of intellectual capital is a key question in this work.The first stage includes an analytic hierarchy process(AHP) that examines the measurement indicators of intellectual capital.In the second stage,structural equation modeling(SEM) is performed to examine the theoretical model fit and hypotheses.This work designs a dynamic integrated model for examining the influence of value drivers and time-lag effects on the Taiwanese high-tech industry,and to examine the relationships among the intellectual capital and financial performance.Data are obtained from the Taiwan financial database maintained by the Taiwan Economic Journal(TEJ) for fiscal years 2005,2006,and 2007.The final sample comprised 240 firms in the Taiwanese high-tech industry.Based on the existing literature,this work has five aims:(a) to construct the measurement indicators of intellectual capital;(b) to examine the cause-and-effect relationships and linkages between the theorical model of intellectual capital and value creation;(c) to examine the paths between the intellectual capital and value creation in the high-tech industry;and(d) to examine the time-lag effects of intellectual capital.The empirical results of the SEM analysis indicate that IC elements positively influence enterprise performance in the dynamic integrated model.In the long term, human or innovation capital may not have an immediate impact,often taking two years to show results;these lags may have duration of two years.It means that the effect of research and innovation need a period of time to crate value.In results,if companies pay attention on IC elements,then the value of intellectual capital and enterprise performance will growth.