| Title : | Effects of relational capital on firm performance : a case of Nepalese insurance companies | | Material Type: | printed text | | Authors: | Uddav Dev Joshi, Author | | Publication Date: | 2018 | | Pagination: | 90p. | | Size: | GRP/Thesis | | Accompanying material: | 11/B | | Languages : | English | | Descriptors: | Intellectual capital
| | Class number: | 370 | | Abstract: | The relational capital is the most difficult of the three subcategories of intellectual capital to develop, since it is the most external part to the organizations core. Relational capital is a non-exclusive property of the firm. This implies that it is even more important to consider an approach towards a high awareness of the relational capital of an organization (Castro et al., 2004). Relational capital can contribute to the economic development and to the interaction with society. In addition to all the points mentioned, relational capital also cover image, loyalty, satisfaction, commercial power, environmental activities and so on. In short, it covers everything that might be connected externally to the company, and it is the connected value with the external world (Meritum, 2002).
The major purpose of this study is to examine the relationship between relational capital and performance of Nepalese insurance industry. The specific objectives are: to analyze the impact of customer capital, supplier capital, employee capital, investor capital and community capital on the return on assets and market share of Nepalese insurance companies.
This study is based on the comparative analysis of the relationship between relational capital and firm performance of Nepalese insurance companies. This study has considered customer capital, supplier capital, employee capital, investor capital and community capital as relational capital variables. The performance variables are return on assets and market share. The dummy variable is nature of insurance. This study is based on primary and secondary sources of data. The primary sources of data have been used to assess the opinion of respondents with respect to relational capital regarding the Nepalese insurance companies. The questionnaire survey has been conducted to know the opinions of employees regardingcustomer capital, supplier capital, employee capital, investor capital and community capital as relational capital variables. A set of questionnaire was prepared and distributed to the employees of Nepalese insurance companies. The questions were designed to get the views, related information from the respondents. Data were collected using well formulated questionnaires. The questionnaires were self-adjusted, validated and pre-tested. The respondents represent employees of 7 life insurance companies and 10 nonlife insurance companies of Nepal and total of 250 questionnaires were collected. The secondary data were collected for the period of 2009/10 to 2015/16. The main sources of data are insurance statistics published by Insurance Board of Nepal, annual reports of different insurance companies, and supervision report of insurance board of Nepal. Primary and secondary data are analyzed using the SPSS package. The primary and secondary sources of data have been employed to understand and analyze the impact of relational capital components on performance of Nepalese insurance companies.
Out of total respondents, the majority of respondents (54.80 percent) were male and the rest were female (45.2 percent). In terms of education level, majority of the respondents (50 percent) are graduate followed by post graduate (31.2 percent), where under graduates are (16.8 percent) and intermediate level are (2 percent).Regarding to year of experience on job, the highest of the respondents (34.8 percent) have 5 to 10 years.In term of designation, the higher portion of the respondents (42 percent) by job position of officer.
The result shows that SGIC has highest average return on assets (24.78 percent) and NLIC has highest average market share (16.21 percent) among selected Nepalese insurance companies over the study period. The results revealed that LIC (Nepal) has lowest fluctuation on ROA, likewise NLIC has lowest fluctuation on MS over the study period for the Nepalese insurance companies. The study also revealed that when the return on assets is compared over a period of time, it is noticed that in average ROA is in decreasing trend whereas average MS is in increasing trend over the study period for the Nepalese insurance companies.
The descriptive statistics of the study shows that the average return on assets is 10.542 percent, market share is 10.391 percent, average customer capital is 4, average supplier capital is 4, average employee capital is 4, average investor capital is 4 and average community capital is 4. The correlation matrix of the study reveals that employee capital, investor capital and community capital are positively correlated to return on assets while customer capital and supplier capital are negatively correlated to return on assets. However, the correlation matrix reveals that and customer capital, supplier capital and community capital are positively correlated to market share while employee capital and investor capital are negatively correlated to market share. The regression analysis reveals that employee capital, investor capital and community capital have positive impact on return on assets whereas customer capital and supplier capital have negative impact on return on assets for Nepalese insurance companies. The result also reveals that customer capital, supplier capital and community capital have positive impact on market share whereas employee capital, investor capital have negative impact on market share for Nepalese insurance companies.
The major conclusion of this study is that relational capital has a positive relationship with firm performance in Nepalese insurance companies. However, when relational capital is split into its components, the relationships between these components and insurance performance indicators vary. The study concludes that among the relational capital components, customer capital and employee capital are the most dominant variable that affects the performance of the insurances. The insurances have given more importance to customer capital and employee capital over supplier capital, investor capital and community capital. Therefore, Insurance should have to give more priority to maintaining good relation with customer by providing superior service. Likewise, the insurance sector is a service sector where its customer services rely heavily on employee capital. Therefore, insurance should have to give more priority to investment in employee capital to gain competitive advantage and continue to survive in the industry.
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Effects of relational capital on firm performance : a case of Nepalese insurance companies [printed text] / Uddav Dev Joshi, Author . - 2018 . - 90p. ; GRP/Thesis + 11/B. Languages : English | Descriptors: | Intellectual capital
| | Class number: | 370 | | Abstract: | The relational capital is the most difficult of the three subcategories of intellectual capital to develop, since it is the most external part to the organizations core. Relational capital is a non-exclusive property of the firm. This implies that it is even more important to consider an approach towards a high awareness of the relational capital of an organization (Castro et al., 2004). Relational capital can contribute to the economic development and to the interaction with society. In addition to all the points mentioned, relational capital also cover image, loyalty, satisfaction, commercial power, environmental activities and so on. In short, it covers everything that might be connected externally to the company, and it is the connected value with the external world (Meritum, 2002).
The major purpose of this study is to examine the relationship between relational capital and performance of Nepalese insurance industry. The specific objectives are: to analyze the impact of customer capital, supplier capital, employee capital, investor capital and community capital on the return on assets and market share of Nepalese insurance companies.
This study is based on the comparative analysis of the relationship between relational capital and firm performance of Nepalese insurance companies. This study has considered customer capital, supplier capital, employee capital, investor capital and community capital as relational capital variables. The performance variables are return on assets and market share. The dummy variable is nature of insurance. This study is based on primary and secondary sources of data. The primary sources of data have been used to assess the opinion of respondents with respect to relational capital regarding the Nepalese insurance companies. The questionnaire survey has been conducted to know the opinions of employees regardingcustomer capital, supplier capital, employee capital, investor capital and community capital as relational capital variables. A set of questionnaire was prepared and distributed to the employees of Nepalese insurance companies. The questions were designed to get the views, related information from the respondents. Data were collected using well formulated questionnaires. The questionnaires were self-adjusted, validated and pre-tested. The respondents represent employees of 7 life insurance companies and 10 nonlife insurance companies of Nepal and total of 250 questionnaires were collected. The secondary data were collected for the period of 2009/10 to 2015/16. The main sources of data are insurance statistics published by Insurance Board of Nepal, annual reports of different insurance companies, and supervision report of insurance board of Nepal. Primary and secondary data are analyzed using the SPSS package. The primary and secondary sources of data have been employed to understand and analyze the impact of relational capital components on performance of Nepalese insurance companies.
Out of total respondents, the majority of respondents (54.80 percent) were male and the rest were female (45.2 percent). In terms of education level, majority of the respondents (50 percent) are graduate followed by post graduate (31.2 percent), where under graduates are (16.8 percent) and intermediate level are (2 percent).Regarding to year of experience on job, the highest of the respondents (34.8 percent) have 5 to 10 years.In term of designation, the higher portion of the respondents (42 percent) by job position of officer.
The result shows that SGIC has highest average return on assets (24.78 percent) and NLIC has highest average market share (16.21 percent) among selected Nepalese insurance companies over the study period. The results revealed that LIC (Nepal) has lowest fluctuation on ROA, likewise NLIC has lowest fluctuation on MS over the study period for the Nepalese insurance companies. The study also revealed that when the return on assets is compared over a period of time, it is noticed that in average ROA is in decreasing trend whereas average MS is in increasing trend over the study period for the Nepalese insurance companies.
The descriptive statistics of the study shows that the average return on assets is 10.542 percent, market share is 10.391 percent, average customer capital is 4, average supplier capital is 4, average employee capital is 4, average investor capital is 4 and average community capital is 4. The correlation matrix of the study reveals that employee capital, investor capital and community capital are positively correlated to return on assets while customer capital and supplier capital are negatively correlated to return on assets. However, the correlation matrix reveals that and customer capital, supplier capital and community capital are positively correlated to market share while employee capital and investor capital are negatively correlated to market share. The regression analysis reveals that employee capital, investor capital and community capital have positive impact on return on assets whereas customer capital and supplier capital have negative impact on return on assets for Nepalese insurance companies. The result also reveals that customer capital, supplier capital and community capital have positive impact on market share whereas employee capital, investor capital have negative impact on market share for Nepalese insurance companies.
The major conclusion of this study is that relational capital has a positive relationship with firm performance in Nepalese insurance companies. However, when relational capital is split into its components, the relationships between these components and insurance performance indicators vary. The study concludes that among the relational capital components, customer capital and employee capital are the most dominant variable that affects the performance of the insurances. The insurances have given more importance to customer capital and employee capital over supplier capital, investor capital and community capital. Therefore, Insurance should have to give more priority to maintaining good relation with customer by providing superior service. Likewise, the insurance sector is a service sector where its customer services rely heavily on employee capital. Therefore, insurance should have to give more priority to investment in employee capital to gain competitive advantage and continue to survive in the industry.
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