Achieving business performance via implementation of knowledge management: A comparative study of MAKE and non-MAKE companies

This article explores whether organisations that have received the Most Admired Knowledge Enterprises (MAKE) award boast better business performance relative to those that have not received or participated in the award. This quantitative study is based on 59 MAKE award winners in 2009, along with 59 counterparts. Financial data were collected from publicly available annual reports for the period 2009-2016. Applying the Value Added Intellectual Coefficient (VAIC) methodology, regression models were developed to examine the associations and connections between MAKE and non-MAKE companies' Intellectual Capitals and their financial performance indicators. Based on correlation and linear multiple regression analysis, the VAIC components (HCE, SCE and CEE) have no statistical predictive trend for market value (MB). However, HCE, SCE and CEE were significant predictors of three corporate financial performance indicators (ROA, ATO and ROE). The group of non-MAKE companies demonstrates a higher VAIC value. There is no statistical significance between the two groups' business performance.