Does a Multifaceted View of Intellectual Capital Influence the Firm Performance of Readymade Garment Industries in Bangladesh? A Conceptual Analysis

Abstract

The central construct of this paper is to bring an authentic version of the multifaceted view of intellectual capital (IC) for firm performance through a conceptual framework in the context of Bangladesh's readymade garment (RMG) industries. A company's performance is substantially reliant on the availability of knowledge-related resources, such as IC, in a knowledge-based economy. This paper's methodology emphasizes the theoretical framework connected with IC to demonstrate the research gaps extracted from preceding literature. However, the study's initial outcome is that a plethora of literature considers the traditional three elements (human capital, structural capital, and relational capital) of IC, while little is known about the role of social capital distinctively in Bangladesh. The core conception of the "intellectual capital-based view" proposes that the firm's wealth depends on the divergent perspective of IC, which leads to superior firm Performance. This paper suggests practical guidelines to aid organizations focus on the potential utilization of IC using the conceptual links between knowledge-based assets and organizational performance. The proposed research model may inspire a novel research agenda on how multifaceted IC dimensions are inevitable to foster firm performance, specifically in RMG companies in Bangladesh. The rationale for selecting RMG companies is that this industry requires a comprehensive framework to transition from a labor-intensive to an information-intensive industry. This paper also highlights some ground rules for top management to achieve the maximum benefits of IC and add practical value to the organization.