Abstract
The idea of applying physics concepts or methods to economic and/or social phenomena is not new. Quantum physics is increasingly entering the social world as a means of helping to explain social phenomena. We extend this approach by using concepts from quantum mechanics to investigate the economic nature of goodwill and present a new conceptual approach. After reviewing Barad’s concept of agential realism, we develop a quantum interpretation for the accounting world. In this theory-building exercise we discuss quantum physics concepts such as entanglement, diffraction and intra-action among others to propose a physical and economic inseparability between goodwill and other company assets. Both intangible capital (goodwill) and physical capital are “entangled”, and this entanglement forms the economic value of the company. Unlike Einstein, we conclude that the entanglement of physical capital and intangible capital through intra-action is not “spooky action at a distance” but a form of wealth creation (or wealth destruction) in companies.
Published Version
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