Corporate Intellectual Capital Research Articles

Policy uncertainty and intellectual capital investment

ABSTRACT This paper investigates the relationship between economic policy uncertainty (EPU) and corporate intellectual capital (IC) investment. The empirical results, which are based on a wide range of econometric tests, demonstrate a negative impact of EPU on IC investment, thus lending support to the notion that EPU hinders corporate IC investment. The analysis also indicates that the negative impact of EPU on IC investment varies cross-sectionally. It is prominent only in large firms and financially constrained firms, suggesting such firms reduce or delay IC investment during heightened EPU periods. EPU does not significantly affect the IC investment in small firms and firms with less financial constraints. Our findings are broadly consistent with existing studies in the literature and remain qualitatively unchanged after a battery of robustness and endogeneity tests.

FORMATION OF INTELLECTUAL CORPORATE CAPITAL: METHODS AND MODERN TRENDS

The accumulated assets of intellectual capital serve as the basis for the formation of competitive advantages of TNCs in the global economy. The world leading corporations are diversifying methods of forming and attracting intellectual capital in terms of increased competition. The aim of the study is to identify modern features and methods of intellectual capital accumulation as the basis of competitive advantages of TNCs in the global environment. The findings imply that the basis of leadership and high competitiveness of TNCs are the accumulated assets of intellectual capital. The result of the study was the systematization and disclosure of the methods of accumulation of intellectual corporate capital. The current trends in the accumulation of intellectual capital assets by leading TNCs of the world are revealed. The accumulation of corporate intellectual capital of corporations is carried out on the basis of large-scale investment in assets: the development of corporate forms of personnel training, a tremendous increase in R&D expenses, the formation of distributed innovation networks and open innovation platforms, the introduction of the latest knowledge management mechanisms. The forms of attracting intellectual capital from outside are actively used: the search and attraction of talented and highly qualified human resources from other countries, the purchase of patents, technologies, management models, mergers and acquisitions of companies, etc. Transnational corporations are becoming the leading subjects of spending on science in the world: in the top ten countries they account for more than half of all R&D costs, and in the leading countries of the USA and China - up to 80%. The accumulation of corporate intellectual capital is characterized by tendencies in the formation of two powerful world leaders - the USA and China, increased competition, a sharp increase in R&D costs, regional and industry transformations. The world leaders in science spending are the corporate sector in the United States and China. The sectoral structure of the world's leading transnational corporations is changing: instead of oil and automobile, the top ten transnational corporations now mainly include computer and high-tech companies. Aggressive strategies for increasing intellectual assets are being implemented. An effective tool for accumulating intellectual assets is mergers and acquisitions. The leaders in the number of mergers and acquisitions are TNCs from leading countries: USA, China, United Kingdom, Germany and Japan. The formation of corporate intellectual capital is an important step in building an effective synergistic interaction of all the constituent triangles “business-education-science”. This triad is a key tool for the strategic development of the knowledge economy for any country in the world.

Does the knowledge-sharing platform specialist matter in knowledge sharing for secured KMS?

BACKGROUND: Knowledge remains a competitive, intangible resource in today’s contemporary organizations. Most knowledge management initiatives aimed at leveraging knowledge for sustainable corporate performance. Knowledge sharing is fundamental to growing intellectual capital. Security on knowledge resources is a prerequisite to quality knowledge content. To increase trust in both knowledge content and security, a knowledge-sharing platform specialist (KsPS) plays a significant role in the overall management and authentication of corporate intellectual capital. OBJECTIVE: This paper analyzes the contributive role of the KsPS and investigates whether or not KsPS matters in strengthening knowledge quality and security in organizations. METHODS: We conducted a broader review of relevant literature on issues relating to knowledge management, knowledge security, KsPS, and sharing platforms to have a better understanding of roles played by the KsPS. Besides, 18 KsPS from 15 organizations were interviewed through telephone or Skype regarding their role expectations in knowledge sharing, quality, and security in the knowledge management system (KMS). Thematic analysis was done to obtain the relevant themes for the study. RESULTS: The study established that the KsPS provides quality facilitative roles in knowledge-sharing processes for secured KMS. Thus, the KsPS significantly contributes to knowledge codification and internalization. CONCLUSIONS: With very little recognition of the KsPS in the existing KMS literature, this study draws attention to the management of organizations about the need to invest in a KsPS for quality knowledge support services and increased knowledge security.

Analisis Hubungan Profitabilitas Dengan Modal Intelektual Perusahaan (Studi Kasus Pada Perusahaan Pertambangan Sub Sektor Batubara di Bursa Efek Indonesia)

The purpose of this study is to see the relationship between profitability and corporate intellectual capital. The object of this research is the companies listed on the Indonesia Stock Exchange. This study uses purposive sampling. Profitability variable is measured by Return On Investment (ROI) and Net Profit Margin (NPM). The research results state that there is a significant influence on Return On Investment (ROI) and Net Profit Margin (NPM) on Intellectual Capital both simultaneously and partially. This shows that the higher the ability of the company to obtain profits encourages companies to tend to be more detailed in disclosing information, including information about Intellectual Capital.

Knowledge valuation analysis

PurposeThe purpose of this paper is to provide a review of an analytic methodology (knowledge valuation analysis, i.e. KVA), based on complexity and information theory, that is capable of quantifying value creation by corporate intellectual capital. It aims to use a real‐world case to demonstrate this methodology within a consulting context.Design/methodology/approachThe fundamental assumptions and theoretical constructs underlying KVA are summarized. The history of the concept, a case application, limitations, and implications for the methodology are presented.FindingsAlthough well‐known financial analytic tools were used to justify IT investment proposals, none provided a satisfying result because none offered an unambiguous way to tie IT performance to value creation. KVA provided a means to count the amount of corporate knowledge, in equivalent units, required to produce the outputs of client core processes. This enabled stakeholders to assign revenue streams to IT, develop IT ROIs, and decide with clarity where to invest.Practical implicationsWhen stakeholders can assign revenue streams to sub‐corporate processes, they have a new context for making IC investment decisions. “Cost centers” and decisions based on cost containment can be replaced. Concepts such as a knowledge market, the knowledge asset pricing model, k‐betas, and a sub‐corporate equities market can be developed and applied. Some of the limitations related to real options analysis can be resolved.Originality/valueThis paper introduces an approach to measuring corporate intellectual capital that solves some long‐standing IC valuation problems.

Rejuvenating corporate intellectual capital by co‐opting customer competence

The paper proposes an approach through which incumbent enterprises can rejuvenate the value of their IC through “real time” co‐option of customer competence. In contrast to extant research evidence, the integration of customer competence is viewed not only as a means to renew the overall competence of the organization, but also as a method for ensuring that the IC of an enterprise does not become obsolete in a turbulent environment. The paper first describes the dilemma for incumbent firms regarding the continued relevancy (or “freshness”) of their IC. An evaluation of major concepts of customer capital as part of IC is then provided, and subsequently an approach for real time validation of IC through co‐option of customer competence is proposed, with application in a global telecommunications corporation. Finally, conclusions are drawn and further research efforts suggested.