Analyzing the efficiency of intellectual capital: a new approach based on DEA-MPI technology

Abstract

Purpose This study develops a robust model to measure intellectual capital efficiency (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. Practical implications The results of this study have significant ramifications for increasing knowledge of 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 This research contributes to the literature by proposing a robust model for estimating the ICE. It also compares ICE across Gulf companies, industries and countries to shed light on their ICE challenges.