Intellectual Capital in Hospitality: A Panel Data Regression on Hotel Brand Financial Performance
Goran Pavlovic -Belgrade Metropolitan University, Faculty of Management, Tadeusa Koscuska, 63, 11158, Belgrade, Serbia
Milos Stojanovic - Belgrade Metropolitan University, Faculty of Management, Tadeusa Koscuska, 63, 11158, Belgrade, Serbia
Marija Nikolic Tosovic - Belgrade Metropolitan University, Faculty of Management, Tadeusa Koscuska, 63, 11158, Belgrade, Serbia
DOI: https://doi.org/10.31410/tmt.2023-2024.349
Goran Pavlovic -Belgrade Metropolitan University, Faculty of Management, Tadeusa Koscuska, 63, 11158, Belgrade, Serbia
Milos Stojanovic - Belgrade Metropolitan University, Faculty of Management, Tadeusa Koscuska, 63, 11158, Belgrade, Serbia
Marija Nikolic Tosovic - Belgrade Metropolitan University, Faculty of Management, Tadeusa Koscuska, 63, 11158, Belgrade, Serbia
DOI: https://doi.org/10.31410/tmt.2023-2024.349
8th International Thematic Monograph - Modern Management Tools and Economy of Tourism Sector in Present Era, Belgrade, 2023/2024, Published by: Association of Economists and Managers of the Balkans in cooperation with the Faculty of Tourism and Hospitality, Ohrid, North Macedonia; ISSN 2683-5673, ISBN 978-86-80194-81-3 ; Editors: Vuk Bevanda, associate professor, Faculty of Social Sciences, Belgrade, Serbia; Snežana Štetić, full time professor, The College of Tourism, Belgrade, Serbia, Printed by: SKRIPTA International, Belgrade
Abstract: This research aims to examine the impact of intellectual capital on the financial performance of the hotel brand. Beyond human and structural capital, the study underscores the significance of relational capital in fortifying a hotel brand. Consequently, strategic investments in diverse intangible assets within the hotel industry are posited to enhance brand value, thereby elevating financial performance. The empirical analysis, encompassing 29 hotels in the Republic of Serbia from 2018 to 2022, through panel data regression, illuminates a statistically significant and positive correlation between intellectual capital and brand financial performance. This correlation underscores the tangible impact of intellectual capital and other non-material assets, such as brand, on the hotel financial performance.
Keywords: Intellectual capital; Brand; Hotels; Financial performance; Competitive advantage
REFERENCES
Allameh, S. M. (2018). Antecedents and consequences of intellectual capital: The role of social capital, knowledge sharing and innovation. Journal of Intellectual Capital, 19(5), 858-874. https://doi.org/10.1108/JIC-05-2017-0068
Asteriou, D., & Hall, S. G. (2007). Applied econometrics: a modern approach using EViews and Microfit. Hampshire: Palgrave Macmilian.
Bontis, N., Janosevic, S., & Dzenopoljac, 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
Chang, A., & Tseng, C. N. (2005). Building customer capital through relationship marketing activities: The case of Taiwanese multilevel marketing companies. Journal of Intellectual capital, 6(2), 253-266. https://doi.org/10.1108/14691930510592834
Choi, S., Choi, K., Lee, S., & Lee, K. (2017). A financial approach-based measurement of brand equity in the restaurant industry. Tourism Economics, 23(7), 1-8. https://doi. org/10.1177/1354816616688104
Çınar, K. (2020). Customer Based Brand Equity Models in Hotel Industry: A Literature Review. Strategic Innovative Marketing and Tourism, 281-288. https://doi. org/10.1007/978-3-030-36126-6_31
Costa, V., Silva, L., & Loureiro, P. (2020). Intellectual capital and its impact on business performance: An empirical study of Portuguese hospitality and tourism sectors. Intangible Capital, 16(2), 78-89. https://doi.org/10.3926/ic.1550
Dhillon, D. J. (2013). Brand loyalty in hospitality sector in India: A case study of Indian hotels in Goa-Kerala. Journal of Business and Management, 9(3), 58-63.
Edvinsson, L., & Malone, M. S. (1997). Intellectual capital: realizing your company’s true value by finding its hidden brainpower. New York: HarperCollins.
Fung, S. K. K., King, C., Sparks, B. A., & Wang, Y. (2013). The influence of customer brand identification on hotel brand evaluation and loyalty development. International Journal of Hospitality Management, 34, 31-41. https://doi.org/10.1016/j.ijhm.2013.02.002
Gallego, C., Mejia, G. M., & Calderon, G. (2020). Strategic design: origins and contributions to intellectual capital in organizations. Journal of Intellectual Capital, 21(6), 873-891. https:// doi.org/10.1108/JIC-10-2019-0234
Ginesti, G., Caldarelli, A., & Zampella, A. (2018). Exploring the impact of intellectual capital on company reputation and performance. Journal of Intellectual Capital, 19(5), 915-934. https://doi.org/10.1108/JIC-01-2018-0012
Hsu, F. J., Wang, T. Y., & Chen, M. Y. (2013). The impact of brand value on financial performance. Advances in Management & Applied Economics, 3(6), 129-141.
Isberg, S., & Pitta, D. (2013). Using financial analysis to assess brand equity. Journal of Product & Brand Management, 22(1), 65-78. https://doi.org/10.1108/10610421311298713
Jardon, C. M., & Martinez-Covas, X. (2021). Measuring intellectual capital with financial data. Plos One, 16(5), 1-19. https://doi.org/10.1371/journal.pone.0249989
Kennedy, P. (2008). A guide to Econometrics. Oxford: Blackwell Publishing.
Kianto, A., Hurmelinna-Laukkanen, P., & Ritala, P. (2010). Intellectual capital in service and product-oriented companies. Journal of Intellectual Capital, 11(3), 305-325. https://doi. org/10.1108/14691931011064563
Kim, H. B., Kim, W. G., & An, J. A. (2003). The effect of consumer-based brand equity on firms financial performance. Journal of Consumer Marketing, 20(4), 335-351. https://doi. org/10.1108/07363760310483964
Lahap, J., Ramli, N. S., Said, N. M., Radzi, S. M., & Zain, R. A. (2016). A study of brand image towards customer's satisfaction in the Malaysian hotel industry. Procedia - Social and Behavioral Sciences, 224, 149-157. https://doi.org/10.1016/j.sbspro.2016.05.430
Lim, L., & Dallimore, P. (2004). Intellectual capital: management attitudes in service industries. Journal of Intellectual Capital, 5(1), 181-194. https://doi.org/10.1108/14691930410512996
Liu, C. H. (2017). The relationships among intellectual capital, social capital, and performance - The moderating role of business ties and environmental uncertainty. Tourism Management, 61, 553-561. https://doi.org/10.1016/j.tourman.2017.03.017
Nam, J., Ekinci, Y., & Whyatt, G. (2011). Brand equity, brand loyalty and consumer satisfaction. Annals of Tourism Research. 38(3), 1009-1030. https://doi:10.1016/j.annals.2011.01.015
Newbold, P., Carlson, W., & Thorne, B. (2010). Statistics for business and economics. New York: Pearson.
Obeidat, U., Obeidat, B., Alrowwad, A., Alshurideh, M., Mas’adeh, R., & Abuhashesh, M. (2021). The effect of intellectual capital on competitive advantage: The mediating role of innovation. Management Science Letters, 11, 1331-1334. https://doi.org/10.5267/j. msl.2020.11.006
Ognjanovic, J. (2016). Intellectual capital in hotel companies. In: Tourism in function of development of the Republic of Serbia, Spa tourism in Serbia and experiences of other countries, Eds: Cvijenović et al., University of Kragujevac, Faculty of hotel management and tourism, Vrnjačka Banja, 430-447.
Ognjanovic, J., & Slavkovic, M. (2022). Intellectual capital and financial performance of entrepreneurs in the hotel industry. Hotel and Tourism Management, 10(1), 25-40. https://doi. org/10.5937/menhottur2201025O
Pekovic, J., Pavlovic, G., & Zdravković, S. (2020). The influence of intellectual capital on financial performance of commercial banks in the Republic of Serbia. Ekonomika, 66(2), 103- 111. https://doi.org/10.5937/ekonomika2002103P
Pulic, A. (2000). VAIC - an accounting tool for IC management. International Journal of Technology Management, 20(5), 702-714. https://doi.org/10.1504/IJTM.2000.002891
Quintero-Quintero, W., Blanco-Ariza, A. B., & Garzon-Castrillon, M. A. (2021). Intellectual capital: a review and bibliometric analysis. Publications, 9(46), 1-23. https://doi. org/10.3390/publications9040046
Rico, P., Cabrer-Borras, B., & Benavides-Espinosa, M. M. (2020). Intangible capital and business productivity in the hotel industry. International Entrepreneurship and Management Journal, 16(2), 691-707. https://doi.org/10.1007/s11365-019-00614-4
Robinot, E., & Giannelloni, J. L. (2010). Do hotel's “green” attributes contribute to customer satisfaction?. Journal of Service Marketing, 24(2), 157-169. https://doi. org/10.1108/08876041011031127
Rudež, H. N., & Mihalič, T. (2007). Intellectual capital in the hotel industry: A case study from Slovenia. International Journal of Hospitality Management, 26(1), 188-199. https://doi. org/10.1016/j.ijhm.2005.11.002
Sadalia, I., Daulay, I. E., Marlina, L., & Muda, I. (2019). The influence of intellectual capital towards financial performance with brand value as an intervening variable. Quality Management, 20(168), 79-85.
Saleem, H., & Raja, N. S. (2014). The impact of service quality on customer satisfaction, customer loyalty. Middle-East Journal of Scientific Research, 19(5), 706-711. https://doi. org/10.5829/idosi.mejsr.2014.19.5.21018
Sardo, F., Sarrasqueiro, 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(2), 67-74. https://doi.org/10.1016/j.ijhm.2018.03.001
Slavković, M., & Ognjanović, J. (2018). Impact of human capital on business performance of hotel enterprises in Serbia. Teme, 42(4), 1339-1355. https://doi.org/10.22190/TEME1804339S
Slavković, M., Ognjanović, J., & Bugarčić, M. (2023). Sustainability of Human Capital Efficiency in the Hotel Industry: Panel Data Evidence. Sustainability, 15(3), 2268. https://doi. org/10.3390/su15032268
Soewarno, N., & Tjahjadi, B. (2020). Measures that matter: an empirical investigation of intellectual capital and financial performance of banking firms in Indonesia. Journal of Intellectual Capital, 21(6), 1085-1106. https://doi.org/10.1108/JIC-09-2019-0225
Stewart, T. A. (1999). Intellectual capital: the new wealth of organizations. New York: Currency Doubleday.
Toylan, N., Semercioz, F., & Hassan, M. (2020). Knowledge sharing in strategic alliance relationships: an empirical research on hotels in Turkey. European Journal of Tourism Research. 24, 1-25. https://doi.org/10.54055/ejtr.v24i.405
Vale, J. A. F. L. O., Vale, V. C. F. T., & Lopes, V. S. C. (2022). Intellectual capital efficiency and financial performance in the hotel sector. International Journal of Learning and Intellectual Capital, 19(1), 53-71.
Weqar, F., Khan, A. M., & Haque, S. M. I. (2020). Exploring the effect of intellectual capital on financial performance: a study of Indian banks. Measuring Business Excellence, 24(4), 511-529. https://doi.org/10.1108/MBE-12-2019-0118
Xu, J., & Liu, F. (2020). The Impact of Intellectual Capital on Firm Performance: A Modified and Extended VAIC Model. Journal of Competitiveness, 12(1), 161–176. https://doi. org/10.7441/joc.2020.01.10
Yayla, S., Yeniyurt, S., Uslay, C., & Cavusgil, E. (2018). The role of market orientation, relational capital, and internationalization speed in foreign market exit and re-entry decisions under turbulent conditions. International Business Review, 27(6), 1105–1115. https://doi. org/10.1016/j.ibusrev.2018.04.002.
Keywords: Intellectual capital; Brand; Hotels; Financial performance; Competitive advantage
REFERENCES
Allameh, S. M. (2018). Antecedents and consequences of intellectual capital: The role of social capital, knowledge sharing and innovation. Journal of Intellectual Capital, 19(5), 858-874. https://doi.org/10.1108/JIC-05-2017-0068
Asteriou, D., & Hall, S. G. (2007). Applied econometrics: a modern approach using EViews and Microfit. Hampshire: Palgrave Macmilian.
Bontis, N., Janosevic, S., & Dzenopoljac, 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
Chang, A., & Tseng, C. N. (2005). Building customer capital through relationship marketing activities: The case of Taiwanese multilevel marketing companies. Journal of Intellectual capital, 6(2), 253-266. https://doi.org/10.1108/14691930510592834
Choi, S., Choi, K., Lee, S., & Lee, K. (2017). A financial approach-based measurement of brand equity in the restaurant industry. Tourism Economics, 23(7), 1-8. https://doi. org/10.1177/1354816616688104
Çınar, K. (2020). Customer Based Brand Equity Models in Hotel Industry: A Literature Review. Strategic Innovative Marketing and Tourism, 281-288. https://doi. org/10.1007/978-3-030-36126-6_31
Costa, V., Silva, L., & Loureiro, P. (2020). Intellectual capital and its impact on business performance: An empirical study of Portuguese hospitality and tourism sectors. Intangible Capital, 16(2), 78-89. https://doi.org/10.3926/ic.1550
Dhillon, D. J. (2013). Brand loyalty in hospitality sector in India: A case study of Indian hotels in Goa-Kerala. Journal of Business and Management, 9(3), 58-63.
Edvinsson, L., & Malone, M. S. (1997). Intellectual capital: realizing your company’s true value by finding its hidden brainpower. New York: HarperCollins.
Fung, S. K. K., King, C., Sparks, B. A., & Wang, Y. (2013). The influence of customer brand identification on hotel brand evaluation and loyalty development. International Journal of Hospitality Management, 34, 31-41. https://doi.org/10.1016/j.ijhm.2013.02.002
Gallego, C., Mejia, G. M., & Calderon, G. (2020). Strategic design: origins and contributions to intellectual capital in organizations. Journal of Intellectual Capital, 21(6), 873-891. https:// doi.org/10.1108/JIC-10-2019-0234
Ginesti, G., Caldarelli, A., & Zampella, A. (2018). Exploring the impact of intellectual capital on company reputation and performance. Journal of Intellectual Capital, 19(5), 915-934. https://doi.org/10.1108/JIC-01-2018-0012
Hsu, F. J., Wang, T. Y., & Chen, M. Y. (2013). The impact of brand value on financial performance. Advances in Management & Applied Economics, 3(6), 129-141.
Isberg, S., & Pitta, D. (2013). Using financial analysis to assess brand equity. Journal of Product & Brand Management, 22(1), 65-78. https://doi.org/10.1108/10610421311298713
Jardon, C. M., & Martinez-Covas, X. (2021). Measuring intellectual capital with financial data. Plos One, 16(5), 1-19. https://doi.org/10.1371/journal.pone.0249989
Kennedy, P. (2008). A guide to Econometrics. Oxford: Blackwell Publishing.
Kianto, A., Hurmelinna-Laukkanen, P., & Ritala, P. (2010). Intellectual capital in service and product-oriented companies. Journal of Intellectual Capital, 11(3), 305-325. https://doi. org/10.1108/14691931011064563
Kim, H. B., Kim, W. G., & An, J. A. (2003). The effect of consumer-based brand equity on firms financial performance. Journal of Consumer Marketing, 20(4), 335-351. https://doi. org/10.1108/07363760310483964
Lahap, J., Ramli, N. S., Said, N. M., Radzi, S. M., & Zain, R. A. (2016). A study of brand image towards customer's satisfaction in the Malaysian hotel industry. Procedia - Social and Behavioral Sciences, 224, 149-157. https://doi.org/10.1016/j.sbspro.2016.05.430
Lim, L., & Dallimore, P. (2004). Intellectual capital: management attitudes in service industries. Journal of Intellectual Capital, 5(1), 181-194. https://doi.org/10.1108/14691930410512996
Liu, C. H. (2017). The relationships among intellectual capital, social capital, and performance - The moderating role of business ties and environmental uncertainty. Tourism Management, 61, 553-561. https://doi.org/10.1016/j.tourman.2017.03.017
Nam, J., Ekinci, Y., & Whyatt, G. (2011). Brand equity, brand loyalty and consumer satisfaction. Annals of Tourism Research. 38(3), 1009-1030. https://doi:10.1016/j.annals.2011.01.015
Newbold, P., Carlson, W., & Thorne, B. (2010). Statistics for business and economics. New York: Pearson.
Obeidat, U., Obeidat, B., Alrowwad, A., Alshurideh, M., Mas’adeh, R., & Abuhashesh, M. (2021). The effect of intellectual capital on competitive advantage: The mediating role of innovation. Management Science Letters, 11, 1331-1334. https://doi.org/10.5267/j. msl.2020.11.006
Ognjanovic, J. (2016). Intellectual capital in hotel companies. In: Tourism in function of development of the Republic of Serbia, Spa tourism in Serbia and experiences of other countries, Eds: Cvijenović et al., University of Kragujevac, Faculty of hotel management and tourism, Vrnjačka Banja, 430-447.
Ognjanovic, J., & Slavkovic, M. (2022). Intellectual capital and financial performance of entrepreneurs in the hotel industry. Hotel and Tourism Management, 10(1), 25-40. https://doi. org/10.5937/menhottur2201025O
Pekovic, J., Pavlovic, G., & Zdravković, S. (2020). The influence of intellectual capital on financial performance of commercial banks in the Republic of Serbia. Ekonomika, 66(2), 103- 111. https://doi.org/10.5937/ekonomika2002103P
Pulic, A. (2000). VAIC - an accounting tool for IC management. International Journal of Technology Management, 20(5), 702-714. https://doi.org/10.1504/IJTM.2000.002891
Quintero-Quintero, W., Blanco-Ariza, A. B., & Garzon-Castrillon, M. A. (2021). Intellectual capital: a review and bibliometric analysis. Publications, 9(46), 1-23. https://doi. org/10.3390/publications9040046
Rico, P., Cabrer-Borras, B., & Benavides-Espinosa, M. M. (2020). Intangible capital and business productivity in the hotel industry. International Entrepreneurship and Management Journal, 16(2), 691-707. https://doi.org/10.1007/s11365-019-00614-4
Robinot, E., & Giannelloni, J. L. (2010). Do hotel's “green” attributes contribute to customer satisfaction?. Journal of Service Marketing, 24(2), 157-169. https://doi. org/10.1108/08876041011031127
Rudež, H. N., & Mihalič, T. (2007). Intellectual capital in the hotel industry: A case study from Slovenia. International Journal of Hospitality Management, 26(1), 188-199. https://doi. org/10.1016/j.ijhm.2005.11.002
Sadalia, I., Daulay, I. E., Marlina, L., & Muda, I. (2019). The influence of intellectual capital towards financial performance with brand value as an intervening variable. Quality Management, 20(168), 79-85.
Saleem, H., & Raja, N. S. (2014). The impact of service quality on customer satisfaction, customer loyalty. Middle-East Journal of Scientific Research, 19(5), 706-711. https://doi. org/10.5829/idosi.mejsr.2014.19.5.21018
Sardo, F., Sarrasqueiro, 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(2), 67-74. https://doi.org/10.1016/j.ijhm.2018.03.001
Slavković, M., & Ognjanović, J. (2018). Impact of human capital on business performance of hotel enterprises in Serbia. Teme, 42(4), 1339-1355. https://doi.org/10.22190/TEME1804339S
Slavković, M., Ognjanović, J., & Bugarčić, M. (2023). Sustainability of Human Capital Efficiency in the Hotel Industry: Panel Data Evidence. Sustainability, 15(3), 2268. https://doi. org/10.3390/su15032268
Soewarno, N., & Tjahjadi, B. (2020). Measures that matter: an empirical investigation of intellectual capital and financial performance of banking firms in Indonesia. Journal of Intellectual Capital, 21(6), 1085-1106. https://doi.org/10.1108/JIC-09-2019-0225
Stewart, T. A. (1999). Intellectual capital: the new wealth of organizations. New York: Currency Doubleday.
Toylan, N., Semercioz, F., & Hassan, M. (2020). Knowledge sharing in strategic alliance relationships: an empirical research on hotels in Turkey. European Journal of Tourism Research. 24, 1-25. https://doi.org/10.54055/ejtr.v24i.405
Vale, J. A. F. L. O., Vale, V. C. F. T., & Lopes, V. S. C. (2022). Intellectual capital efficiency and financial performance in the hotel sector. International Journal of Learning and Intellectual Capital, 19(1), 53-71.
Weqar, F., Khan, A. M., & Haque, S. M. I. (2020). Exploring the effect of intellectual capital on financial performance: a study of Indian banks. Measuring Business Excellence, 24(4), 511-529. https://doi.org/10.1108/MBE-12-2019-0118
Xu, J., & Liu, F. (2020). The Impact of Intellectual Capital on Firm Performance: A Modified and Extended VAIC Model. Journal of Competitiveness, 12(1), 161–176. https://doi. org/10.7441/joc.2020.01.10
Yayla, S., Yeniyurt, S., Uslay, C., & Cavusgil, E. (2018). The role of market orientation, relational capital, and internationalization speed in foreign market exit and re-entry decisions under turbulent conditions. International Business Review, 27(6), 1105–1115. https://doi. org/10.1016/j.ibusrev.2018.04.002.
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E-mail: [email protected]
www.udekom.org.rs
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Registration number.: 28157347