Assessing the value of intellectual capital for competitive advantage in WIG index companies: A comparative analysis of banking and IT sectors using group methods based on ROA and market capitalization

Abstract

Intellectual capital has gained prominence in the knowledge-based economy, where intangible assets are key to organizational value and competitiveness. Though always integral to business, its strategic importance has grown, particularly in innovation-driven sectors and in industries undergoing technological transformation. This article examines intellectual capital's theoretical foundations, focusing on management and measurement. Effective management requires understanding its size, value, and impact. The primary objective is to identify how intellectual capital drives competitive advantage and value creation in Poland’s banking and IT sectors during 2019–2023. In doing so, the paper addresses a clear gap in the literature on cross-sector comparisons in emerging markets. The guiding research question is: How does the role and valuation of intellectual capital differ between knowledge-intensive IT firms and banking institutions characterized by relational, structural, and increasingly technological capital? The study explores two measurement methods: the Market Value to Book Value (MV/BV) ratio and the Calculated Intangible Value (CIV) model, using financial data from 2019–2023 for companies listed on WIG-Banks and WIG-IT indices.  These sectors highlight differing dependencies on intellectual capital: IT prioritizes innovation, specialized knowledge, and R&D, while banking relies more on relational and structural capital, including client relationships, reputation, regulatory compliance, and risk-management systems. The analysis reveals sectoral and corporate variations in intellectual capital, shaped by external factors like the COVID-19 pandemic. Results stress the importance of customized measurement approaches, integrating financial metrics with strategic management insights. The novelty of this study lies in examining intellectual capital during the COVID-19 crisis and the subsequent post-pandemic recovery, providing sector-specific insights into resilience and adaptability. It offers practical guidance for businesses to harness intellectual capital for competitive advantage and market adaptability.