The role of causal maps in intellectual capital measurement and management

Abstract

Purpose– The purpose of this paper is to investigate the measurement and the management of the dynamic aspects of intellectual capital through the use of causal mapping.Design/methodology/approach– The paper details the methods utilized in a single in-depth case study of a network-based business model.Findings– The paper illustrates how causal mapping can be used to understand how intellectual capital really works in the specific business context in which it is deployed. Moreover, exploiting the causal map as a platform for extracting a set of indicators can provide information on the length of the lag and the persistence of the effects of managerial actions. In addition, it can signal when and how to refine and update the causal map. The combination of these factors can potentially support the dynamic measurement and management of intellectual capital.Research limitations/implications– The paper presented has two main limitations. First, the use of a single case study to provide in-depth and rich data limits the generalizability of the observations. Second, the proposed approach has not been implemented in practice. Future research opportunities include interventionist-type case studies that put the causal mapping approach into practice.Practical implications– The paper highlights the need to build causal maps to enhance the measurement and management of intellectual capital, which is dynamic in nature. As a consequence, this tool can be useful for monitoring the intangibles of companies and networks and to better understand the contribution their intellectual capital makes to the value creation process.Originality/value– The paper openly questions the measurement of the fluid and dynamic aspects of intellectual capital. It proposes a tool for governing these aspects and it suggests that even the existing intellectual capital measurement systems can improve their usefulness by including these dimensions. So, a shift in intellectual capital measurement is prescribed.