Research On The Relationship Of Intellectual Capital And Business Performance

With the development of economic globalization, the borderless competition pattern is gradually formed, whether actively accept or passive adapt, each country has to bear the impact that the multinational corporations—the main force on the stage of this global economic arena bring about. Multinational corporations as the benchmark of the global enterprises, have the absolute superiority such as the large scale, advanced technology, abundant funds, top talent, the worldwide distribution network. However, with the advent of knowledge economy, the close relationship between knowledge and economy makes intellectual capital, the enterprise asset gradually becomes the key factor in creating competitive advantage, more and more multinational corporations have chosen homeopathy and started to pay close attention to develop、use and manage intellectual capital, in order to enhance the company’s competitiveness, raise company’s performance, win continuous development and growth.At present, there are not many studies on the relationship between intellectual capital and business performance is not a lot of research. The research on this topic is undergoing the process of from the early qualitative research gradually turning to the quantitative research in the practical application. Especially in our country, the research on the relationship between these two elements is still in its infancy stage. In view of the multinational corporations, studying the impact of intellectual capital on business performance is a new perspective.This paper reviews the theories of intellectual capital and business performance of multinational corporations, states quantitative research methods of the intellectual capital and management performance, and selects China’s102multinational companies as the research object, and then constructs a model, analyzes the data collected by statistical analysis (including factor analysis, correlation analysis, multiple regression analysis), in-depth studies the relationship between three components of intellectual capital (human capital, relational capital, structural capital) and the business performance of china’s multinational companies, committing to figure out which intellectual capital has the closest contact with the business performance of China’s multinational corporations, which intellectual capital is the most worthy of investment and attention, and then derive inspiration, providing beneficial guidance about investment in intellectual capital and management to our country’ multinational corporations.This study has three levels:the first level (chapter1) is to determine the research direction, research object, research methods and research purposes; the second level (chapter2, chapter3) is to Introduce the relevant theories, expound to the selection of quantitative research methods, for the part of empirical study to lay the foundation; the third level (Chapter4, the chapter5) is an established model of empirical analysis and conclusion.Chapterl, Introduction section, mainly introduces the research background, research purpose, research significance, research methods, research framework, research innovation and shortage.Chapter2, Literature review and theoretical basis section, mainly reviews and combs the theories about the connotation, elements and the basic theories of the intellectual capital, factors affecting the performance of multinational corporations, the basic theories of the influence factors and the relationship between intellectual capital and business performance.then on this basis, this article defines the research of intellectual capital and its constituent elements, key is to absorb and draw lessons from the experience of previous studies.Chapter3, Quantitative research methods section, mainly introduces the Measurement method of intellectual capital as well as the measurement method of multinational corporations’management performance, the focus is to clarify the measure indicators of intellectual capital and multinational corporations’ management performance.Chapter4, Empirical analysis section, including the research assumption and model, research design,empirical analysis and discussions of the empirical results. In the study design, the article mainly clarifies that the study samples, data sources, variables. The empirical analysis part mainly analyzes those obtained sample data. For example, factor analysis, descriptive statistics, dependent variable distribution test, correlation and regression analysis. The empirical results discussed part mainly adhering to the principle of linking theory with practice, discuses the results of the correlation analysis and regression analysisChapter5, the empirical results summary part, includes concluding the study, summarizing empirical results, and on the basis of this, accessing to some study inspiration, making some suggestions to our country’multinational corporations.At the end of the paper is Looking future research directions of this topic.Through the analysis of this study, we obtained the following conclusions:1.In terms of the direction, the three components of intellectual capital (human capital, relational capital, structural capital) is positively correlated with the the business performance of China’s multinational corporations. In other words, the company has the more human capital, structural capital, relational capital, the better operating results will be, and the higher the operating performance will be.2.In terms of influence degree, the three components of intellectual capital (human capital, relational capital, structural capital) have different impact on the business performance of China’s multinational corporations. Among them, the relationship between human capital and business performance is most significantly, reaching highly relevant,its effect the strongest. It shows the relationship between human capital and business performance is the closest. It is a key factor to affect its operating performance, plays a dominant role in the company’s value-added, is the most factor worthy of attention and investment; Followed by the relational capital, and its positive role in promoting business performance is more significantly, the relationship between capital and operating performance is relatively close, so in order to make the role of intellectual capital into full play, the company should also strengthen the relational capital development; While the effect of the structure capital is the smallest and not significant, so at present, the structure capital in China’s multinational corporations did not play very well, It only shows that, there are still some problems in our multinational organization structure.Through the initial exploration, three major innovations are the followings:1.The innovation on the research perspective. Among the domestic and international researches, there are not many studies on the relationship between intellectual capital and business performance, specific to a particular industry. Not to mention on this issue for multinational companies to explore.However, in different industries, the impact of intellectual capital on organizational performance is different, thus this paper selected the new perspective for the study, which will enhance practicability and pertinence of the study results.2.The innovation on selecting business performance indicators. Many of researches about the relationship between intellectual capital and business performance choose a single financial indicator to measure business performance the enterprise, the paper chose12performance indicators, with the help of factor analysis to get the message about the business performance of our country’ multinational corporations. And then, building a regression model to further study the link between intellectual capital and multinational companies’business performance, and provide the appropriate basis for the development and management of intellectual capital.3.The innovation on empirical research.The previous studies often only collect the data on a certain time.while the paper selects the78sample data about the intellectual capital and operating performance of26our country’s multinational companies, during the year of2008to2010, avoids the particularity of the sample in a given year, and to some extent, to avoid the lagged effects of intellectual capital. In addition,the paper first time introduces the multinational index as control variables into the research model, and using composite indicators are rarely used in the study of this variable to be measured,improve the rigor of the study.