Ranking of Public and Domestic Private Sector Commercial
Banks in Pakistan on the Basis of the Intellectual
Capital Performance
Jamal Abdul Nassir Shaari1
Muhammad Khalique
Abu Hassan bin Md. Isa
Abstract
In
a knowledge-based economy, intellectual capital is a
main source for organizations to gain competitive
advantage. This study is a preliminary study that
focuses on banking sector to examine the intellectual
capital performance through using VAIC and intellectual
capital efficiency (ICE) method. The principal aim of
this study is to rank Pakistani public and private banks
based on intellectual capital performance. Value Added
Intellectual Coefficient (VAIC) developed by Pulic
(1998) was operationalized to achieve the desired aim.
The available data was obtained from the annual reports
of commercial banks during the period of 2005-2009. The
results indicate that majority of the banks showed
satisfactory intellectual performance. This study is
based on limited scope. Therefore, it does not cover all
banks in Pakistan. The findings of this study may be a
good reference for future study and useful input for
banking sector to strengthen their intellectual capital
for optimum output.
JEL Classification Code: M10, M50
Keywords: Intellectual, Human and Structural Capital; Value Added Intellectual Coefficient (VAIC); Intellectual Capital Efficiency (ICE).
