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Effects of Intellectual Capital on Microfinance Institutions’ Performance

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Proceedings of the 2nd Advances in Business Research International Conference

Abstract

The survival and competitive success of microfinance institutions (MFIs) depends on their intellectual capital. The strategic management of intellectual capital provides greater contribution to the company success as compared to the strategic allocation of physical and financial resources. Ultimately, the top management is uncertain on the valuable resources processed by the firm that will cause the success of new strategies. This is due to the fact that they do not understand the nature and value of intellectual capital, how to create, extract and optimize value and wealth through intellectual capital. Therefore, the purpose of this study is to investigate the effect of intellectual capital on the performance of MFIs. This study was conducted in the form of a survey and the respondents comprised MFIs managers who were considered to have knowledge on the internal management and involved in the development of the institutions. Data collected were tested using multiple regression analysis. The results revealed that intellectual capital as a whole has a significant effect on the performance of MFIs. However, the relationship between human capital (knowledge) and structural capital on MFIs performance is insignificant.

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Author information

Authors and Affiliations

  1. IIBF, International Islamic University, Kuala Lumpur, Malaysia

    Maryam Jameelah Hashim, Adewale Abideen Adeyemi & Syed Musa Alhabshi

  2. Universiti Teknologi MARA, Puncak Alam, Malaysia

    Maryam Jameelah Hashim

Authors
  1. Maryam Jameelah Hashim
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  2. Adewale Abideen Adeyemi
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  3. Syed Musa Alhabshi
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Corresponding author

Correspondence to Maryam Jameelah Hashim .

Editor information

Editors and Affiliations

  1. University Teknologi MARA , Shah Alam, Malaysia

    Fauziah Noordin

  2. Universiti Teknologi MARA , Shah Alam, Malaysia

    Abdul Kadir Othman

  3. Universiti Teknologi MARA , Shah Alam, Selangor, Malaysia

    Erne Suzila Kassim

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Hashim, M.J., Adeyemi, A.A., Alhabshi, S.M. (2018). Effects of Intellectual Capital on Microfinance Institutions’ Performance. In: Noordin, F., Othman, A., Kassim, E. (eds) Proceedings of the 2nd Advances in Business Research International Conference. Springer, Singapore. https://doi.org/10.1007/978-981-10-6053-3_18

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