Strategic environment and intellectual capital of Indian banks

Abstract

Purpose

This paper aims to propose that the development and use of intellectual capital (IC) elements by firms is contingent on the effect of the strategic environment on them.

Design/methodology/approach

The paper is a case study of the Indian banking industry, and considers how different banks responded to deregulation and industry reforms in terms of developing and exploiting their IC.

Findings

Government‐, private‐ and foreign‐owned banks used and developed different elements of IC (structural, human and relational capital) in response to the change in their strategic environment due to the reforms. These responses appear to be contingent on firm history and the initial endowments of IC.

Research limitations/implications

A reliance on print archival sources and context specificity limits the generalizability of the findings.

Practical implications

The paper complements Kamath's cross‐sectional estimation of VAIC™ in the Indian banking industry, and seeks to introduce consideration of the strategic environment of firms.

Originality/value

The paper is one of the first systematic studies on the post‐liberalization strategies of banks in India, an important emerging economy.

Citation

Singh Deol, H. (2009), "Strategic environment and intellectual capital of Indian banks", Journal of Intellectual Capital, Vol. 10 No. 1, pp. 109-120. https://doi.org/10.1108/14691930910922932