The impact of intellectual capital efficiency on firm performance in the MENAT region: Does R&D intensity matter?

Purpose This study aims to investigate the relationship between intellectual capital efficiency and firm performance. Likewise, it examines whether R&D intensity moderates this relationship in the Middle East, North Africa and Turkey (MENAT) region. Design/methodology/approach Using an unbalanced panel of 525 non-financial firms listed across 13 MENAT countries over the period 2015–2024, this study uses fixed-effects panel regression models. Intellectual capital efficiency is measured using the value -added intellectual coefficient (VAIC) model and its sub-components. Firm performance is proxied by return on assets (ROA), while R&D intensity is determined as the ratio of research and development expenditure to total sales. To ensure robustness, the analysis incorporates panel unit root tests, Hausman specification tests, lagged interaction terms and an alternative performance measure (ROI). Findings The analysis demonstrates that overall VAIC and human capital efficiency (HCE) are positively associated with firm profitability. In contrast, capital employed efficiency (CEE) and structural capital efficiency (SCE) exhibit no direct effect on ROA. R&D intensity negatively influences near-term firm performance. While contemporaneous R&D intensity shows no interaction role in the intellectual capital–performance relationship, lagged R&D intensity significantly proves the interaction effects between VAIC and its components on profitability, highlighting the time-delayed nature of returns from innovation investments. Practical implications The findings suggest that managers in the MENAT region should prioritize investments in human capital to enhance short-term profitability, while treating R&D expenditures as long-term strategic investments whose benefits materialize over time. Policymakers may support firm performance by designing incentives that encourage sustained R&D investment and the development of knowledge-based capabilities. Originality/value This paper contributes novel evidence on the moderating role of R&D intensity in the intellectual capital–performance nexus within the MENAT region. It advances the intellectual capital literature and sheds new light on the dynamic interaction between innovation investment and knowledge-based resources in emerging economies.