Revisiting the Role of Intellectual Capital on Firms’ Performance: Indonesian Evidence

The purpose of this study is to revisit the effect of intellectual capital on firms’ performance. This study develops previous researches by measuring firm performance from various dimensions. Further analysis is performed by dividing the sample based on firm size. Using Indonesian data, the results provide evidence that intellectual capital has a positive effect on firm performance. Human capital efficiencies as an element of intellectual capital, also positively affect current and future performance. The authors also find that smaller firms receive more benefits than bigger ones in improving performance by investing more in intellectual capital. Our study contributes to the study of intellectual capital, especially in emerging markets.