Intellectual capital and firm performance: Evidence from certified firms from the EFQM excellence model

Abstract

The main purpose of this study is to investigate the impacts of intellectual capital (IC) on the firm’s performance. Using a sample of 336 Czech firms, including 20 certified firms from the European Foundation for Quality Management (EFQM) Excellence Model from 2015 to 2019, the current study employed pooled regression to test the hypotheses. The dummy variable and dummy interaction terms are used to study the relationship between components of IC of certified firms from the EFQM Model with firm performance. Most of the significant results of the IC components of the certified firms and non-certified firms positively impact firm performance. The findings revealed that the quality certificate from the EFQM Excellence Model has a positive effect on the firm’s performance. The outcomes of the current study offer new and deeper insight into how each component of IC of the certified and non-certified firms relates to the firm’s performance.