Analyzing the efficiency of intellectual capital: anewapproach based on DEA-MPI technology

Abstract

Purpose–Thisstudydevelopsarobustmodeltomeasureintellectualcapitalefficiency (ICE). It also analyzes ICE across Gulf companies, sectors and countries. Design/methodology/approach– This study uses data envelopment analysis (DEA), the Malmquist productivity index (MPI), difference tests and additional analyses on a dataset consisting of 276 firm-year observations. Findings– The findings indicate that the study model is robust to additional analysis. The results show significant differences in ICE between firms during the study period and noteworthy differences between countries, where the Qatari and Bahraini firms achieved the best ICE compared to other countries. Practicalimplications–Theresultsofthisstudyhavesignificantramificationsforincreasingknowledgeof ICE analysis models among relevant parties. In addition, the findings may affect trading strategies because investors and financiers are motivated by the potential for lucrative financial returns on their investments in companies that prioritize ICE strategies. Originality/value–Thisresearchcontributestotheliteraturebyproposingarobustmodelforestimatingthe ICE. It also comparesICEacrossGulfcompanies,industriesandcountriestoshedlightontheirICEchallenges. Keywords Intellectual capital, Efficiency, DEA, Data envelopment analysis, Malmquist productivity index Paper type Research paper