INTELLECTUAL CAPITAL EFFICIENCY AS THE DETERMINING FACTOR OF SUSTAINING PROFITABILITY IN THE COVID-19 PANDEMIC CONDITIONS: DOES THE AGE OF THE ENTERPRISE MATTER IN HOTEL INDUSTRY?
Keywords:
intellectual capital, efficiency, profitability, hotel, Covid-19 pandemicAbstract
The purpose of this paper is to provide the answer to the question - Can the efficiency of intellectual capital (ICE) be a factor in maintaining the profitability of young and mature hotel enterprises in the crisis caused by the Covid-19 pandemic? The key goal of the paper is to point out the importance of intangible (intellectual) resources for improving business performance, and above all, profitability. To respond to the goals of the research, an analysis of the contribution of human capital efficiency (HCE) and structural capital efficiency (SCE) to the profitability of young and mature hotels in the year before the crisis and the year of crisis in the Republic of Serbia (RS), as an emerging country will be given. The study's findings suggest that the ICE components have a partial impact on the profitability of young hotels in the year before the crisis. In the year of crisis, the ICE components partially affect the realization of sustainable and profitable business among mature hotels.References
Asare, N., Alhassan, A. L., Asamoah, M. E., & Ntow-Gyamfi, M. (2017). INTELLECTUAL CAPITAL AND PROFITABILITY IN AN EMERGING INSURANCE MARKET. Journal of Economic and Administrative Sciences, 33(1), 2-19. https://doi.org/10.1108/JEAS-06-2016-0016
Baum, T., & Nickson D. (1998). TEACHING HUMAN RESOURCE MANAGEMENT IN HOSPITALITY AND TOURISM: A CRITIQUE. International Journal of Contemporary Hospitality Management, 10(2), 75–79.
Biggadike, R. (1979). THE RISKY BUSINESS OF DIVERSIFICATION. Harvard Business Review, Available at: https://hbr.org/1979/05/the-risky-business-of-diversification (10.11.2021)
Chang, W. S., & Hsieh, J. (2011). THE DYNAMICS OF INTELLECTUAL CAPITAL IN ORGANIZATIONAL DEVELOPMENT. African Journal of Business Management, 5(6), 2345-2355.
Chatterjee, S., Chaudhuri, R., Thrassou, A., & Sakka, G. (2021). IMPACT OF FIRM’S INTELLECTUAL CAPITAL ON FIRM PERFORMANCE: A STUDY OF INDIAN FIRMS AND THE MODERATING EFFECTS OF AGE AND GENDER. Journal of Intellectual Capital, 23(1), 103-126. https://doi.org/10.1108/JIC-12-2020-0378
Chu, S. K. W., Chan, K. H., Yu, K. Y., Ng, H. T., & Wong, W. K. (2011). AN EMPIRICAL STUDY OF THE IMPACT OF INTELLECTUAL CAPITAL ON BUSINESS PERFORMANCE. Journal of Information & Knowledge Management, 10(1), 11-21.
Couto, M. H. G., Oliva, F. L., Del Giudice, M., Kotabe, M., Chin, T., & Kelle, P. (2021). LIFE CYCLE ANALYSIS OF BRAZILIAN START-UPS, CHARACTERISTICS INTELLECTUAL CAPITAL AGENTS AND ASSOCIATED RISKS. Journal of Intellectual Capital, Article in press. https://doi.org/10.1108/JIC-01-2021-0005
Dalwai, T., & Salehi, M. (2021). BUSINESS STRATEGY INTELLECTUAL CAPITAL FIRM PERFORMANCE AND BANKRUPTCY RISK, EVIDENCE FROM OMAN’S NON-FINANCIAL SECTOR ENTERPRISES. Asian Review of Accounting, 29(3), 474-504. https://doi.org/10.1108/ARA-01-2021-0008
Dzenopoljac, V., Yaacoub, C., Elkanj, N., & Bontis, N. (2017). IMPACT OF INTELLECTUAL CAPITAL ON CORPORATE PERFORMANCE, EVIDENCE FROM THE ARAB REGION. Journal of Intellectual Capital, 18(4), 884-903. https://doi.org/10.1108/JIC-01-2017-0014
Edvinsson, L & Malone, M. Intellectual Capital, Realizing your Enterprise’s True Value by Finding its Hidden Brainpower. New York, Harper Collins, 1997.
El-Chaarani, H., Ismail, T. H., El-Abiad, Z., El-Deeb, M. S. (2022). THE IMPACT OF COVID-19 ON FINANCIAL STRUCTURE AND PERFORMANCE OF ISLAMIC BANKS, A COMPARATIVE STUDY WITH CONVENTIONAL BANKS IN THE GCC COUNTRIES. Journal of Economic and Administrative Sciences, Article in press.
European Commission (2021). Available at: https,//webgate.ec.europa.eu/isdb_results/factsheets/country/overview_serbia_en.pdf (18.06.2021.)
Eurostat (2021). European Statistical European Commission, Available at: https,//appsso.eurostat.ec.europa.eu/nui/submitViewTableAction.do (12.09.2021.)
Firer, S., & Williams, S. (2003). INTELLECTUAL CAPITAL AND TRADITIONAL MEASURES OF CORPORATE PERFORMANCE. Journal of Intellectual Capital, 4(3), 348-360.
Hsu, L. C., & Wang, C. H. (2010). CLARIFYING THE EFFECT OF INTELLECTUAL CAPITAL ON PERFORMANCE, THE MEDIATING ROLE OF DYNAMIC CAPABILITY. British Journal of Management, 23(2), 1-28.
Krstić, B. Upravljanje intelektualnim kapitalom preduzeća. Niš, Ekonomski fakultet Univerziteta u Nišu, 2014.
Krstić, B., & Bonić, Lj. (2016). EIC: A NEW TOOL FOR INTELLECTUAL CAPITAL PERFORMANCE MEASUREMENT. Prague Economic Papers, 25(6), 723-741. https://doi.org/10.18267/j.pep.586
Krstić, B., & Sekulić, V. Upravljanje performansama preduzeća. Niš, Ekonomski fakultet Univerziteta u Nišu, 2020.
Lai, I. K. W., & Wong, J. W. C. (2020). COMPARING CRISIS MANAGEMENT PRACTICES IN THE HOTEL INDUSTRY BETWEEN INITIAL AND PANDEMIC STAGES OF COVID-19. International Journal of Contemporary Hospitality Management, 32(10), 3135-3156.
MacGregor Pelikanova, R., Cvik, E. D., & MacGregor, R. K. (2021). ADDRESSING THE COVID-19 CHALLENGES BY SMES IN THE HOTEL INDUSTRY – A CZECH SUSTAINABILITY MESSAGE FOR EMERGING ECONOMIES. Journal of Entrepreneurship in Emerging Economies, 13(4), 525-546.
Mehralian, G., Rasekh, H. R., Akhavan, P., & Sadeh, M. R. (2012). THE IMPACT OF INTELLECTUAL CAPITAL EFFICIENCY ON MARKET VALUE, AN EMPIRICAL STUDY FROM IRANIAN PHARMACEUTICAL ENTERPRISES. Services Iranian Journal of Pharmaceutical Research, 11(1), 195-207.
Miles, S. J., & Van Clieaf, M. (2017). STRATEGIC FIT, KEY TO GROWING ENTERPRISE VALUE THROUGH ORGANIZATIONAL CAPITAL. Business Horizons, 60(1), 55-65.
Nassar, S. (2018). THE IMPACT OF INTELLECTUAL CAPITAL ON CORPORATE PERFORMANCE OF IT ENTERPRISES, EVIDENCE FROM BURSA ISTANBUL. International Journal of Business Ethics and Governance, 1(3), 1-10.
Nimtrakoon, S. (2015). THE RELATIONSHIP BETWEEN INTELLECTUAL CAPITAL FIRMS’ MARKET VALUE AND FINANCIAL PERFORMANCE, EMPIRICAL EVIDENCE FROM THE ASEAN. Journal of Intellectual Capital, 16(3), 587-618. https://doi.org/10.1108/JIC-09-2014-0104
Ognjanović, J. (2020). THE ROLE OF VISIBLE INTANGIBLE ASSETS IN IMPROVING BUSINESS PERFORMANCE OF HOTEL ENTERPRISES. Tourism International Scientific Conference Vrnjačka Banja – TISC, 5(1), 314-331.
Ognjanović, J., & Bugarčić, M. (2021). THE ROLE OF EMPLOYER BRAND IN HOTEL ENTERPRISES DURING COVID-19 CRISIS. Tourism International Scientific Conference Vrnjačka Banja – TISC, 6(1), 263-280.
Peña, I. (2002). INTELLECTUAL CAPITAL AND BUSINESS START‐UP SUCCESS. Journal of Intellectual Capital, 3(2), 180-198. https://doi.org/10.1108/14691930210424761
Pulic, A. (2004). INTELLECTUAL CAPITAL – DOES IT CREATE OR DESTROY VALUE? Measuring Business Excellence, 8(1), 62-68. https://doi.org/10.1108/13683040410524757
Radjenovic, T., & Krstic, B. (2017). INTELLECTUAL CAPITAL IN THE THEORY OF THE FIRM. Ekonomika, Journal for Economic Theory and Practice and Social Issues, 63(4), 13-27.
Ramírez, Y., Dieguez-Soto, J., & Manzaneque, M. (2021). HOW DOES INTELLECTUAL CAPITAL EFFICIENCY AFFECT FIRM PERFORMANCE? THE MODERATING ROLE OF FAMILY MANAGEMENT. International Journal of Productivity and Performance Management, 70(2), 297-324. https://doi.org/10.1108/IJPPM-03-2019-0119
Ray, G., Xue, L., & Barney, J. B. (2012). IMPACT OF INFORMATION TECHNOLOGY CAPITAL ON FIRM SCOPE AND PERFORMANCE, THE ROLE OF ASSET CHARACTERISTICS. Academy of Management Journal, 56(4), 1125-1147.
Serbian Business Registers Agency (2021). Available at: https,//www.apr.gov.rs/home.1435.html (12.06.2021.)
Shahzad, F., Baig, M. H., Rehman, I. U., Saeed, A., & Asim, G. A. (2021). DOES INTELLECTUAL CAPITAL EFFICIENCY EXPLAIN CORPORATE SOCIAL RESPONSIBILITY ENGAGEMENT-FIRM PERFORMANCE RELATIONSHIP? EVIDENCE FROM ENVIRONMENTAL SOCIAL AND GOVERNANCE PERFORMANCE OF US LISTED FIRMS. Borsa Istanbul Review, Article in press.
Solimun, M. S. Structural Equation Modelling LISREL dan Amos Malang. Department of Mathematics and Sciences Brawijaya University, 2009.
Statistical Office of the Republic of Serbia (2020). ECONOMIC TRENDS IN THE REPUBLIC OF SERBIA 2020, Available at: https://www.stat.gov.rs/sr-latn/vesti/20201230-ekonomska-kretanja-2020 ?s=090201 (10.06.2021.)
Sumedrea, S. (2013). INTELLECTUAL CAPITAL AND FIRM PERFORMANCE, A DYNAMIC RELATIONSHIP IN CRISIS TIME. Procedia Economics and Finance, 6, 137-144.
Tan, H. P., Plowman, D., & Hancock, P. (2007). INTELLECTUAL CAPITAL AND FINANCIAL RETURNS OF ENTERPRISES. Journal of Intellectual Capital, 8(1), 76-95. DOI: 10.1108/14691930710715079
Torre, C., Tommasetti, A., & Maione, G. (2021). TECHNOLOGY USAGE INTELLECTUAL CAPITAL FIRM PERFORMANCE AND EMPLOYEE SATISFACTION, THE ACCOUNTANTS’ IDEA. The TQM Journal, 33(3), 545-567. https://doi.org/10.1108/TQM-04-2020-0070
Tran, N. P., & Vo, D. H. (2021). DO BANKS ACCUMULATE A HIGHER LEVEL OF INTELLECTUAL CAPITAL? EVIDENCE FROM AN EMERGING MARKET. Journal of Intellectual Capital, 23(2), 439-457. https://doi.org/10.1108/JIC-03-2020-0097
Veselinović, N., Krstić, B., & Veselinović, M. (2021). MEASURING HUMAN CAPITAL EFFICIENCY. Economics of Sustainable Development, 5(2), 1-17. https://doi.org/10.5937/ESD2102001V
Weqar, F., Khan, A. M., & Haque, S. M. I. (2020). EXPLORING THE EFFECT OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE, A STUDY OF INDIAN BANKS. Measuring Business Excellence, 24(4), 511-529. https://doi.org/10.1108/MBE-12-2019-0118
White, G., Lee, A., & Tower, G. (2007). DRIVERS OF VOLUNTARY INTELLECTUAL CAPITAL DISCLOSURE IN LISTED BIOTECHNOLOGY ENTERPRISES. Journal of Intellectual Capital, 8(3), 517-537. https://doi.org/10.1108/14691930710774894
Xiong, Y., Lam, H. K. S., Kumar, A., Ngai, E. W. T., Xiu, C., & Wang, X. (2021). THE MITIGATING ROLE OF BLOCKCHAIN-ENABLED SUPPLY CHAINS DURING THE COVID-19 PANDEMIC. International Journal of Operations & Production Management, 41(9), 1495-1521.
Yu, K. Y., Ng, H. T., Wong, W. K., Chu, S. K. W., & Chan, K. H. (2010). An empirical study of the impact of intellectual capital performance on business performance. In, 7th International Conference on Intellectual Capital Knowledge Management & Organisational Learning. Hong Kong, The Hong Kong Polytechnic University.
Zigan, K., & Zeglat, D. (2010). INTANGIBLE RESOURCES IN PERFORMANCE MEASUREMENT SYSTEMS OF THE HOTEL INDUSTRY. Facilities, 28(13/14), 597-610. https://doi.org/10.1108/02632771011083667
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Jasmina Ognjanović, Bojan Krstić, Tamara Rađenović, Milica Jovanović Vujatović
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
