A framework for human capital indicators in knowledge- based industries: evidence from pharmaceutical industry

Abstract

Purpose – During the last decade, intellectual capital (IC) has been widely considered as a critical tool to deliver successful business in an intensive knowledge environment. The main goal of this paper is therefore to develop and prioritize human capital indicators as an important component of IC in knowledge-based industries. Design/methodology/approach – Based on an extensive literature review, a valid and reliable questionnaire was designed. In order to gather data, it was sent out to 108 participants from academia and universities who were well qualified in pharmaceutical practice. Besides statistical analysis, the authors also used fuzzy TOPSIS technique as a MADM model in order to extract prioritization of indicators. Findings – The analysis indicates that there is little difference between academic and university respondents. Furthermore, the fuzzy TOPSIS results show that participants have high concerns especially about knowledge and skills of managers and employees. Research limitations/implications – The findings offer valuable insights in evaluating the state of human capital state as a key component of IC in knowledge- based industry. Practical implications – There is an immediate need that the policy makers and corporate managers wake up to the need and start to measure and disclose the intangible assets of firms. Intellectual capital measurement is also of primary interest for top executives of pharmaceutical firms in Iran. Originality/value – This is an initial and pioneering study to develop a valid tool to evaluate IC in the Iranian pharmaceutical industry. The present study provides a new aspect of performance measurement for research-based industries in emerging economies and would be a good topic for further research.