Title: Striving towards better governance and a knowledge-based economy: impact of intangible resources on firm performance

Authors: Kanwal Iqbal Khan; Syed Khurram Abbas Sherazia; Hafsa Hamida

Addresses: Institute of Business and Management, University of Engineering and Technology Lahore, Lahore, Punjab 39161, Pakistan ' Institute of Business and Management, University of Engineering and Technology Lahore, Lahore, Punjab 39161, Pakistan ' Institute of Business and Management, University of Engineering and Technology Lahore, Lahore, Punjab 39161, Pakistan

Abstract: The nexus between corporate governance, intellectual capital, and firm performance is imperative for developing countries striving towards being more knowledge-based. This paper investigates the influence of innovation and competitive advantage on the relationship between intellectual capital, corporate governance, and firm performance. An industry-wise analysis of the non-financial sector of Pakistan is conducted. In order to assess corporate governance and intellectual capital, internal mechanisms of corporate governance and modified value-added intellectual coefficient were used. Data were collected from primary and secondary sources. A multi-group analysis was conducted to examine the industry-wise performance of the firms. The findings indicate that innovation and competitive advantage partially mediate the relationship of corporate governance, intellectual capital, and firm performance. This study is one of the first attempts to investigate the multi-group analysis of the non-financial sector of Pakistan concerning mechanisms of corporate governance and intellectual capital. The findings will help the non-financial sector of Pakistan to develop strategies and focus on intangible resources that can add value to their firms.

Keywords: corporate governance; competitive advantage; firm performance; intellectual capital; innovation; non-financial sector; modified value-added intellectual coefficient.

DOI: 10.1504/IJBGE.2023.130084

International Journal of Business Governance and Ethics, 2023 Vol.17 No.3, pp.246 - 278

Received: 26 Jul 2021
Accepted: 22 Aug 2021
Published online: 05 Apr 2023 *

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