Abstract
Ex post examination of a firm's performance in key intellectual capital indicators can demonstrate the value-creating potential and the organizational change aspect of intellectual capital reporting and management. These insights form the basis of an intellectual capital portfolio selection problem. Portfolio selection takes place in two stages. First, we calculate mean returns and variances for each market-valued portion of intellectual capital. Based on these estimations, we set up a portfolio selection problem. The solution to this portfolio selection problem provides priorities for organizational change. In this framework, the portfolio weights stand for organizational priorities, the weight constraints represent organizational barriers for change and the correlation of returns stands for the organizational interdependence of the intellectual capital components.
Published Version
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