Analysis of the Role of Capital Employed Efficiency, Human Capital Efficiency, Structural Capital Efficiency in Banking Companies in Indonesia
Downloads
The rapid development of science and technology is shifting the business concept that was previously only based on physical and financial assets to a knowledge-based business. Based on the research problem, this research aims to describe capital employed efficiency, human capital efficiency, and structural capital efficiency in banking companies in Indonesia. This research method is a descriptive study that examines the components of capital employed efficiency, human capital efficiency, and structural capital efficiency. The criteria for this research sample follow Firer and Williams, the company does not have a negative HC or SC value. This research was conducted at the Indonesia Stock Exchange (IDX). The study's results found that based on the calculation results of 24 banking companies studied during 2014-2022, 62.5% (15 companies) had capital-employed efficiency achievements below average, while 37.5% (9 companies) were above average. For human capital efficiency achievements, 70.8% (17 companies) were below average, while 29.2% (7 companies) were above it. PT Bank Y is included in the group with human capital efficiency below the average of the banks studied. The study results are expected to be theoretically useful in presenting empirical evidence regarding the influence of capital employed efficiency, human capital efficiency, structural capital efficiency, relational capital efficiency, innovation capital efficiency, and corporate governance on financial performance in banking companies in Indonesia.
Abdallah, A. A. N., & Ismail, A. K. (2017). Corporate governance practices, ownership structure, and corporate performance in the GCC countries. Journal of International Financial Markets, Institutions and Money, 46, 98–115. https://doi.org/10.1016/j.intfin.2016.08.004
Agusiady, R., Dwiputrianti, S., Kusumastuti, D., & Sedermayanti. (2022). Mewujudkan Good Corporate Governance (Tata Kelolah Perusahaan yang Baik) di Era Industri 4.0 dan Masyarakat 5.0. Deepublish.
Ajija, S. R., Sari, D. W., Setianto, R. H., & Primanti, M. R. (2019). Cara Cerdas Menguasai Eviews. Salemba Empat.
Al-ahdal, W. M., Alsamhi, M. H., Tabash, M. I., & Farhan, N. H. S. (2020). The impact of corporate governance on financial performance of Indian and GCC listed firms: An empirical investigation. Research in International Business and Finance, 51(August 2019), 101083.
https://doi.org/10.1016/j.ribaf.2019.101083
Al Farooque, O., Buachoom, W., & Sun, L. (2020). Board, audit committee, ownership and financial performance-emerging trends from Thailand. Pacific Accounting Review, 32(1), 54–81. https://doi.org/10.1108/PAR-10-2018-0079
Alfraih, M. M. (2018). The role of corporate governance in intellectual capital disclosure. International Journal of Ethics and Systems, 34(1), 101–121. https://doi.org/10.1108/IJOES-02-2017-0026
Amin, S., & Aslam, S. (2017). Intellectual Capital, Innovation and Firm Performance of Pharmaceuticals: A Study of the London Stock Exchange. Journal of Information and Knowledge Management, 16(2), 1–20. https://doi.org/10.1142/S0219649217500174
Bank Indonesia. (2006).Peraturan Bank Indonesia Nomor 8/4/pbi/2006 Tentang Pelaksanaan Good Corporate Governance Bagi Bank Umum.
Barney, J. (1991). Firms Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120.
Barney, J. B., & Clark, D. N. (2007). Resource-based theory: Creating and sustaining competitive advantage. Oxford University Press.
Bayraktaroglu, A. E., Calisir, F., & Baskak, M. (2019). Intellectual capital and firm performance: an extended VAIC model. Journal of Intellectual Capital, 20(3), 406–425.
https://doi.org/10.1108/JIC-12-2017-0184
Becker, G. S. (1964). Human capital. University of Chicago Press Economics Books.
Bontis, N. (1999). Managing Organizational Knowledge By Diagnosing Intellectual Capital : Framing and Advancing the State of the Field. International Journal of Technology Management, 18(5/6/7/8), 433–462.
https://doi.org/10.1504/IJTM.1999.002780
Bontis, N., Dragonetti, N. C., Jacobsen, K., & Roos, G. (1999). The Knowledge Toolbox : A Review of the Tools Available to Measure and Manage Intangible Resources. European Management Journal, 17(4), 391–402.
Bontis, N., Janošević, S., & Dženopoljac, V. (2015). Intellectual capital in serbia’s hotel industry. International Journal of Contemporary Hospitality Management, 27(6), 1365–1384. https://doi.org/10.1108/IJCHM-12-2013-0541
Bontis, N., Keow, W. C. C., & Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital, 1(1), 85–100. https://doi.org/10.1108/14691930010324188
Brigham, E. F., & Houston, J. F. (2009). Dasar-Dasar Manajemen Keuangan. Salemba Empat.
Brigham, E. F., & Houston, J. F. (2011). Dasar-Dasar Manajemen Keuangan (Edisi 10). Salemba Empat.
Buallay, A. (2019). Intellectual capital and performance of Islamic and conventional banking: Empirical evidence from Gulf Cooperative Council countries. Journal of Management Development, 38(7), 518–537. https://doi.org/10.1108/JMD-01-2019-0020
Buallay, A., & Hamdan, A. (2019). The relationship between corporate governance and intellectual capital: The moderating role of firm size. International Journal of Law and Management, 61(2), 384–401. https://doi.org/10.1108/IJLMA-02-2018-0033
Buallay, A., Hamdan, A. M., Reyad, S., Badawi, S., & Madbouly, A. (2020). The efficiency of GCC banks: the role of intellectual capital. European Business Review, 32(3), 383–404. https://doi.org/10.1108/EBR-04-2019-0053
Chandrarin, G. (2017). Metode Riset Akuntansi Pendekatan kuantitatif. Salemba Empat.
Chen, M.-C., Cheng, S.-J., & Hwang, Y. (2005). An empirical investigation of the relationship between intellectual capital and firms’ market value and financial performance. Journal of Intellectual Capital, 6(2), 159–176.
https://doi.org/10.1108/14691930510592771
Ciftci, I., Tatoglu, E., Wood, G., Demirbag, M., & Zaim, S. (2019). Corporate governance and firm performance in emerging markets: Evidence from Turkey. International Business Review, 28(1), 90–103. https://doi.org/10.1016/j.ibusrev.2018.08.004
Detthamrong, U., Chancharat, N., & Vithessonthi, C. (2017). Corporate governance, capital structure and firm performance: Evidence from Thailand. Research in International Business and Finance, 42, 689–709. https://doi.org/10.1016/j.ribaf.2017.07.011
Donnelly, R., & Mulcahy, M. (2008). Board structure, ownership, and voluntary disclosure in Ireland. Corporate Governance: An International Review, 16(5), 416–429.
https://doi.org/10.1111/j.1467-8683.2008.00692.x
Edvinsson, L., & Sullivan, P. (1996). Developing a model for managing intellectual capital. European Management Journal, 14(4), 356–364.
https://doi.org/10.1016/0263-2373(96)00022-9
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press.
Freeman, R. E., Wicks, A. C., & Parmar, B. (2004). Stakeholder Theory and “ The Corporate Objective Revisited .” Organization Science, 15(3), 364–369. https://doi.org/10.1287/orsc.1040.0066
Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. Badan Penerbit Universitas Diponegoro.
Ghozali, I., & Ratmono, D. (2018). Analisis Multivariat dan Ekonometrika EViews10 (Edisi 2). Badan Penrbit-UNDIP, Semarang.
Gitman, L. (2009). Principles of Managerial Finance (Tenth Edit). Pearson Addison Wesley.
Hamdan, A. (2018). Intellectual capital and firm performance: Differentiating between accounting-based and market-based performance. International Journal of Islamic and Middle Eastern Finance and Management, 11(1), 139–151.
https://doi.org/10.1108/IMEFM-02-2017-0053
Harmono. (2017). Manajemen Keuangan Berbasis Balanced Scorecard. Bumi Aksara.
Harrison, J. S., & Thompson, S. M. (2015). Strategic management of healthcare organizations: A stakeholder management approach. Business Expert Press.
Kianto, A., Sáenz, J., & Aramburu, N. (2017). Knowledge-based human resource management practices, intellectual capital and innovation. Journal of Business Research, 81, 11–20. https://doi.org/10.1016/j.jbusres.2017.07.018
Kultys, J. (2016). Controversies about agency theory as theoretical basis for corporate governance. Oeconomia Copernicana, 7(4), 613–634. https://doi.org/10.12775/OeC.2016.034
Lu, W.-M., Wang, W.-K., Tung, W., & Lin, F. (2010). Capability and efficiency of intellectual capital: The case of fabless companies in Taiwan. Expert Systems with Applications, 37(1), 546–555. https://doi.org/10.1016/j.eswa.2009.05.031
Mohapatra, S., Jena, S. K., Mitra, A., & Tiwari, A. K. (2019). Intellectual capital and firm performance: evidence from Indian banking sector. Applied Economics, 51(57), 6054–6067.
https://doi.org/10.1080/00036846.2019.1645283
Musallam, S. R. M. (2020). Effects of board characteristics, audit committee and risk management on corporate performance: evidence from Palestinian listed companies. International Journal of Islamic and Middle Eastern Finance and Management, 13(4), 691–706.
https://doi.org/10.1108/IMEFM-12-2017-0347
Nawaz, T., & Haniffa, R. (2017). Determinants of financial performance of Islamic banks : an intellectual capital perspective. Journal of Islamic Accounting and Business Research, 8(2), 130–142. https://doi.org/10.1108/JIABR-06-2016-0071
Nazir, M. I., Tan, Y., & Nazir, M. R. (2021). Intellectual capital performance in the financial sector: Evidence from China, Hong Kong, and Taiwan. International Journal of Finance and Economics, 26(4), 6089–6109.
https://doi.org/10.1002/ijfe.2110
Oppong, G. K., & Pattanayak, J. K. (2019). Does investing in intellectual capital improve productivity? Panel evidence from commercial banks in India. Borsa Istanbul Review, 19(3), 219–227. https://doi.org/10.1016/j.bir.2019.03.001
Otoritas Jasa Keuangan.(2015).Salianan Peraturan Otoritas Jasa Keuangan Nomor 55/POJK.04/2015 Tentang Pembentukan dan Pedomaan Pelaksanaan Kerja Komite Audit, (2015).
Otoritas Jasa Keuangan.(2016).Salinan Peraturan Otoritas Jasa Keuangan Nomor 55 /POJK.03/2016 Tentang Penerapan Tata Kelola Bagi Bank Umum.
Ozkan, N., Cakan, S., & Kayacan, M. (2017). Intellectual capital and financial performance: A study of the Turkish Banking Sector. Borsa Istanbul Review, 17(3), 190–198.
https://doi.org/10.1016/j.bir.2016.03.001
Panda, B., & Leepsa, N. M. (2017). Agency theory: Review of theory and evidence on problems and perspectives. Indian Journal of Corporate Governance, 10(1), 74–95. https://doi.org/10.1177/0974686217701467
Paniagua, J., Rivelles, R., & Sapena, J. (2018). Corporate governance and financial performance: The role of ownership and board structure. Journal of Business Research, 89, 229–234. https://doi.org/10.1016/j.jbusres.2018.01.060
Penrose, E. (2009). The Theory of the Growth of the Firm. Oxford University Press.
Petty, R., & Guthrie, J. (2000). Intellectual capital literature review Measurement, reporting and management. Journal of Intellectual Capital, 1(2), 155–176. https://doi.org/https://doi.org/10.1108/14691930010348731
Poh, L. T., Kilicman, A., & Ibrahim, S. N. I. (2018). On intellectual capital and financial performances of banks in Malaysia. Cogent Economics and Finance, 6(1), 1–15.
https://doi.org/10.1080/23322039.2018.1453574
Pulic, A. (2000). VAIC - an accounting tool for IC management. International Journal of Technology Management, 20(5–8), 702–714. https://doi.org/10.1504/ijtm.2000.002891
Rehman, A. U., Aslam, E., & Iqbal, A. (2022). Intellectual capital efficiency and bank performance: Evidence from islamic banks. Borsa Istanbul Review, 22(1), 113–121. https://doi.org/10.1016/j.bir.2021.02.004
Rodrigues, L. L., Tejedo-Romero, F., & Craig, R. (2017). Corporate governance and intellectual capital reporting in a period of financial crisis: Evidence from Portugal oa. International Journal of Disclosure and Governance, 14, 1–29. https://doi.org/10.1057/jdg.2015.20
Roos, J., Roos, G., Dragonetti, N. C., & Edvinsson, L. (1997). Intellectual Capital: Navigating In The New Business Landscape. Macmillan Press LTD.
Sardo, F., Serrasqueiro, Z., & Alves, H. (2018). On the relationship between intellectual capital and financial performance: A panel data analysis on SME hotels. International Journal of Hospitality Management, 75, 67–74. https://doi.org/10.1016/j.ijhm.2018.03.001
Sartono, R. A. (2010). Manajemen Keuangan Teori dan Aplikasi (Empat). BPFE.
Sharma, S., Durand, R. M., & Gur-Arie, O. (1981). Identification and Analysis of Moderator Variables. Journal of Marketing Research, 18(3), 291–300.
Sochib. (2016). Good Corporate Governance Manajemen Laba & Kinerja Keuangan. Deepublish.
Stewart, T. A. (1997). Intellectual Capital: Modal Intelektual. PT Alex Media Komputindo.
Tejedo-Romero, F., Rodrigues, L. L., & Craig, R. (2017). Women directors and disclosure of intellectual capital information. European Research on Management and Business Economics, 23(3), 123–131. https://doi.org/10.1016/j.iedeen.2017.06.003
Tomer, J. F. (1987). Organizational capital: The path to higher productivity and well-being. Praeger Pub Text.
Tran, N. P., Van, L. T. H., & Vo, D. H. (2020). The nexus between corporate governance and intellectual capital in Vietnam. Journal of Asia Business Studies, 14(5), 637–650. https://doi.org/10.1108/JABS-01-2020-0007
Ulum, I. (2009). Intellectual Capital Konsep dan Kajian Empiris. Graha Ilmu.
Ulum, I., Ghozali, I., & Purwanto, A. (2014). Intellectual Capital Performance of Indonesian Banking Sector : A Modified VAIC ( M-VAIC ) Perspective. Asian Journal of Finance & Accounting, 6(2), 103–123.
https://doi.org/10.5296/ajfa.v6i2.5246
Vidyarthi, H., & Tiwari, R. (2020). Cost, revenue, and profit efficiency characteristics, and intellectual capital in Indian Banks. Journal of Intellectual Capital, 21(1), 1–22. https://doi.org/10.1108/JIC-05-2019-0107
Williamson, O. (1975). Markets and Hierarchies. Free Press.
Xu, J., & Wang, B. (2018). Intellectual capital, financial performance and companies’ sustainable growth: Evidence from the Korean manufacturing industry. Sustainability, 10(12), 1–15. https://doi.org/10.3390/su10124651
