Does Intellectual Capital Matter for Organizational Performance in Emerging Markets? Evidence from Chinese and Russian Contexts

In recent decades, numerous empirical studies have demonstrated the importance of intellectual capital (IC) for efficiency and value creation (e.g. Chen et al. 2015; Kianto et al. 2013; Pulic 2000; Sydler et al. 2014). However, differences of cultural, economic or institutional context pose a range of challenges for the management of intellectual capital and knowledge (Glisby and Holden 2003; May and Stewart 2013; Andreeva and Ikhilchik 2011). As most studies have been conducted in developed countries (Sharabati et al. 2010), the significance of IC in emerging economies remains unclear (Liang et al. 2013), with no comparative analyses of IC management in such markets. This chapter compares how intellectual capital impacts the performance of companies in China and Russia. These major emerging economies are of particular interest here because while both prioritize innovation and are increasingly integrated into the global economy, their traditional management approaches differ significantly from those in developed countries. Based on survey data collected from 139 Chinese and 86 Russian companies, the chapter examines the performance impact of the human, structural and relational components of IC. The results are relevant for IC research and practice, as they extend the understanding of IC and its consequences in emerging economies