Citation: Sohel Rana, M.; Hossain, S.Z. Intellectual Capital, Firm Performance, and Sustainable Growth: A Study on DSE-Listed Nonfinancial Companies in Bangladesh. Sustainability 2023, 15, 7206. https://doi.org/10.3390/ su15097206 Academic Editor: Hannu Schadewitz Received: 10 March 2023 Revised: 5 April 2023 Accepted: 21 April 2023 Published: 26 April 2023 Copyright: © 2023 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https:// creativecommons.org/licenses/by/ 4.0/). sustainability Article Intellectual Capital, Firm Performance, and Sustainable Growth: A Study on DSE-Listed Nonfinancial Companies in Bangladesh Md. Sohel Rana 1, * and Syed Zabid Hossain 2 1 Institute of Bangladesh Studies, University of Rajshahi, Rajshahi 6205, Bangladesh 2 Department of Accounting and Information Systems, University of Rajshahi, Rajshahi 6205, Bangladesh; syed6205@ru.ac.bd * Correspondence: s2013183506@ru.ac.bd Abstract: Intellectual Capital (IC) stimulates corporate competitive advantages that can enhance firm performance and sustainable growth (SG). This study investigates IC’s affinity with and impact on accounting and market performance and SG of listed nonfinancial companies in Bangladesh. Data were collected from 69 nonfinancial companies for five years during 2017–2021, forming 345 observations. Modified Value Added Intellectual Coefficient (MVAIC) and steady-state models consecutively measured IC efficiency and Sustainable Growth Rate (SGR). The Robust fixed effect model was applied to confirm the highest reliable results. Results of MVAIC, Intellectual Capital Efficiency (ICE), and Human Capital Efficiency (HCE) showed a positive affinity with and impact on firm performance and SGR. Structural Capital Efficiency (SCE) showed an insignificant association with and impact on explained variables, whereas Relational Capital Efficiency (RCE) showed a significant negative relationship with and impact on the same. Tangible capital employed efficiency (CEE) enhanced firm performance but failed to confirm sustainable growth. The findings help business executives, government, and policymakers formulate strategic plans for sustainable resource utilization and can create value, competitive edges, and survival for firms. The study recommends that corporate entities should strive to enhance their efficiency in internal structural resources and relational activities to achieve better firm performance and sustainable growth. Keywords: intellectual capital; accounting performance; market performance; sustainable growth; nonfinancial companies; Bangladesh 1. Introduction The shift from traditional industrial backgrounds to knowledge-based economic sys- tems for augmenting business excellence has recently been a hot issue of discussion. Ac- cording to Guthrie et al. [1], the world economy shifted rapidly from an industrial to a knowledge-based economy in the 1980s. In this situation, executives would learn about the most effective managerial game plan to maximize their financial and strategic objectives. In today’s changing global system, knowledge capital has become the most recognized factor in the performance of the organization’s tangible assets. Nevado-Pena et al. [2] assert that IC has replaced an organization’s financial and physical resources. Organizations that better collect, disseminate and exploit their IC and knowledge possessions are more successful in their business [3,4]. The 2020 valuation of S&P 500 companies shows that 90 percent of their total assets are intangible assets, up from one-sixth of total assets in 1975 [5]. In this perspective, IC is the actual driver for corporate performance and sustainable busi- ness growth. It leads organizations to survive in the long run by protecting and utilizing knowledge resources. Knowledge can differentiate the value between knowledge-based and traditional companies. Thus, IC is the knowledge that adds more value to the organiza- tion [6,7]. However, based on the Resource Based View, tangible and intangible resources are essential for organizational success [8]. Sustainability 2023, 15, 7206. https://doi.org/10.3390/su15097206 https://www.mdpi.com/journal/sustainability