Competition, intellectual capital efficiency and firms' performance outcome in India: a structural equation modelling

This study examines the effect of competition and intellectual capital efficiency on firms' performance outcome in an emerging market context. The authors conceptualise a new theoretical model to examine the direct effect of competition on intellectual capital efficiency and firms' performance outcomes and indirect effect of competition through intellectual capital efficiency on firms' performance outcomes in the Indian market. It concludes that competition positively impacts intellectual capital efficiency and firms' market to book value and negatively impacts the firms' return on asset and competitive advantage. However, competition does not have any significant indirect effect on firms' financial performance outcomes via intellectual capital coefficient measures. The results extend the understanding of the direct and indirect effect of competition on intellectual capital efficiency and financial performance outcomes for companies in one of the fastest growing emerging economies.