DefinePK

Abstract

This study examines the comparative performance of intellectual capital in Islamic banks versus conventional banks in Pakistan over the period 2015–2020. The analysis employs the Value-Added Intellectual Coefficient (VAIC) framework, which decomposes intellectual capital into human capital efficiency (HCE), structural capital efficiency (SCE), and capital employed efficiency (CEE). Simulated data representing bank financial metrics are used to compare the two groups. Descriptive statistics and independent-sample t-tests are applied. Results show that Islamic banks have significantly higher average HCE and CEE, while conventional banks have higher average SCE. The findings suggest that Islamic banks leverage human and capital resources more effectively, whereas conventional banks rely more on structural systems. The implications of these differences for banking strategy and management of intellectual capital are discussed.