Intellectual capital, digital transformation and firm performance: evidence based on listed companies in the Chinese construction industry

Purpose The study aims to investigate the effects of intellectual capital and its constituents on the performance of listed companies operating in China's construction sector. The study also intends to examine the moderating role of digital transformation. Design/methodology/approach Hypotheses will be tested using Modified Value-Added Intellectual Capital (MVAIC). The sample will be comprised of 93 Shenzhen and Shanghai A-share listed companies within the construction industry from the period of 2015–2021. Multiple regression analysis was employed to investigate the influence of intellectual capital, its components and digital transformation on the performance of construction firms. Findings The study's results reveal that the performance of construction firms greatly depends on intellectual capital and its components. Furthermore, digital transformation plays a vital moderating role between intellectual capital and its components and construction firm performance. Practical implications This study addresses a critical inquiry on how construction managers can employ intellectual capital to enhance the performance of firms during digital transformation. Additionally, this research bridges this gap by guiding construction managers to concentrate on their external surroundings when examining firm performance. Originality/value By focusing on the predictors influencing construction firms' performance, this study contributes to the existing corpus of knowledge. This study employs resource orchestration theory (ROT) to determine how the different components of intellectual capital impact the performance of construction firms, with digital transformation acting as a moderating variable. This research will be valuable to researchers, construction industry professionals and policymakers.