Intangible Activities Research Articles

Human Capital In The Digital Society. Some Empirical Evidence For The Eu Countries

Abstract Development and innovation in the digital technologies impact the whole society, communications, finances, trade, education and health services, business patterns and the entire value-added channel. The increase in the speed of digitization and its expansion within businesses leads to significant changes, both regarding the human capital and the way work and place of work are organized, with high impacts on skills, labor standards, human welfare and sustainable development of countries. Digitization involves changes not only in the human capital, but in the organizational one as well, so that for each euro invested in physical capital (hardware) some additional 10 euros have to be invested in intangible activities, especially in the human and organizational capital (Brynjolfsson and McAfee, 2014). The paper aims to analyse the impacts of digitization on human capital in the EU economies, also considering the impact of the COVID-19 pandemic that has speeded up the digitization process in the EU countries. Both the useful aspects and the challenges determined by the new requirements regarding the skills necessary to human capital are emphasized, as well as the efforts included in the EU programs dedicated to such issues, considering that 42% of the European citizens do not possess basic digital skills and 37% of labor force does not possess adequate digital skills. Finally, some econometric aspects regarding the relationship between welfare and population’s digital skills are revealed, as well as conclusions on further research and directions for action.

The demands of populism on business and the creation of “corporate political obligations”

Populism is an ideologically fluid political vehicle which increases political risk and forces firms to adapt. As populist parties claim to speak exclusively for the people, any activities that could be perceived as going against populist ideals or leaders are problematic from the corporate point of view. These obligations need not require firms to actively support the populist party or to champion causes dear to the populists, as they may simply expect that firms refrain from challenging the status quo. But these expectations can alter firm operations and planning, particularly intangible activities such as corporate social responsibility, making a firm divert resources away from what it may desire to compete in the economic marketplace and forcing it instead to compete in the social and political marketplace. In this paper, we explore these obligations imposed on firms and term them corporate political obligations (CPO), a specific type of corporate political activity but one which is imposed from the outside. Through our examination, we find that CPO is the dark side of stakeholder capitalism, with states utilizing power to claim rights within the marketplace that are not theirs to claim.

Management of Intangibles in Contemporary Environment – a Case Study of BSE Listed Automobile Corporates in India

Management of intangibles is new phenomenon in contemporary environment. It is comprehensive concept then knowledge management. Precisely management of intangibles concern with identifi cation of intangibles within corporate, and how they are supporting to enhance present and future value of the firm, searching intangible activities and effi ciently management of such activities so the value creation and management possible in optimistic way. In the process of management of intangibles three important steps under taken by the corporates such as identification of vital intangible assets associated with value creation, measurement of intangible by selected indicators and fi nally monitoring of intangibles. Keeping all these factors in view an attempt is made by the researcher to analyze the value creation and generation of intangibles specifi c for automobile industry in India in two different time dimensions within a gape of one decade. For this purpose a quantitative data taken from fi nancial year 2004-05 to 2009-10 and from 2014-15 to 2019-20 to fi nd out creation of intangible, disclosed and undisclosed intangible during these two different period of time and any signifi cant difference in the size and trend of the intangibles management. The qualitative data related to intangibles also analyze by the using tool content analysis; such as how many intangibles disclosed in annual reports, their nature and type and the way of reporting etc. Finally researcher found that creation of intangibles by automobile corporates is 78.20% during 2015-2020 as compare to 2005-2010 was 64%. Similarly contribution of undisclosed intangibles in total intangibles is 97.23% which is higher and its affects the fi nancial position of the companies. Major disclosed intangibles are in form of Technological know-how, Model fee/Product designs and development, Brand license fee, Non-Compete Fees, and goodwill.

Financial constraints to investing in intangibles: Do innovative and non-innovative firms differ?

This paper investigates the extent to which financial constraints on investments in intangible activities differ with respect to the kind of intangible and to the firms’ innovative status. Through an original pseudo-panel extension of a recent European Innobarometer survey, we are capable to address these research questions by attenuating the risks of reverse causality and simultaneity bias and to obtain interesting new results. Financial barriers significantly hamper the firms’ investments in intangibles with respect to R&D, design, software, and organisation or business process improvements. With respect to branding and reputation, and training, instead, financial constraints do not emerge to hinder the relative investments. Furthermore, while innovative firms tend to invest more in intangibles, the hampering role of financial barriers does not seem to differ between innovative and non-innovative firms. Financial barriers reduce firms’ investments in intangibles selectively, but the strength of this effect is the same in deterring and in restraining their possible innovative use by non-innovative and innovative firms, respectively.

Post-Pandemic Development: Sluggish or Rapid Recovery?

Post-Pandemic Development: Sluggish or Rapid Recovery?

Value chains of the world's top manufacturing corporations: moving from tangible to intangible activities?

PurposeThis paper aims to investigate if the world top manufacturing corporations' cost structures are moving from tangible to intangible activities and their impact on profitability.Design/methodology/approachThe theoretical approach is interdisciplinary, combining global value chains, international manufacturing networks, cost management literatures. The empirical approach has a sample out of financial statements' data from 220 multinational corporations between 2006 and 2017, grouping them by technological intensity. It is created the “COGS-share” indicator – the ratio between the costs of goods sold and overall costs and expenses – as a proxy for the firms' expenses of tangible and intangible value chain activities. It is tested as an explanatory variable for the companies' profits through dynamic panel data econometric models.FindingsThe results show that the cost structure still is very concentrated in tangibles. Though costs of both tangible and intangible activities negatively impact profits, they affect value generation differently: the higher the share of intangible in comparison to tangible activities in overall cost and expenses, the greater the profits in most manufacturing groups, regardless of their technological intensity.Research limitations/implicationsThe empirical analysis simplifies the composition of value chains per activity because financial statements data are aggregates, preventing detailed analysis by markets, business units or products. Stocks' levels are assumed to be at the desired level during the time series. The dataset does not allow value curves to be drawn because direct wages' data and more precise information on cost (especially deferred assets and wages) are missing.Practical implicationsThe presented approach, particularly the COGS-share indicator, contribute to assess value generation from activities for improving corporate strategies and public policies on operations and cost management of global value chains.Social implicationsSupporting upgrading decisions that impact value production, allocation and distribution between workers, firms and countries.Originality/valueInterdisciplinary theoretical and empirical assessment of the manufacturing companies' cost structures and profits based on financial statements data for the better understanding of value generation from tangible and intangible activities.

Assessing the Impacts of Market Failures on Innovation Investment in Uruguay

This paper analyzes the effects of financial and nonfinancial obstacles to innovation on Uruguayan firms. We contribute to the literature by including the role of systemic and institutional factors affecting the different stages of the innovation process. The empirical analysis is based on four waves of national innovation surveys covering firms in the industry and services sector. In line with recent studies, we confine our analysis to the relevant sample of potentially innovative firms. Our results show that market, financial, knowledge, and context obstacles are the most important factors reducing innovation propensity and the amount invested in innovation activities. The effects are similar for firms in the industry and services sectors. We do not find evidence that institutional factors hamper innovation. Investment in equipment and investment in R&D and other intangible activities are affected differently by obstacles. On the other hand, innovation outcomes are affected mainly by financial and market-related barriers. We do not find evidence that obstacles to innovation have a significant impact on labor productivity.

A Proposal for an Intangible Resources Management System at the Organizational Level

Abstract The intangible resources management (IRM) is a key area within organizations, not only in terms of theory, but also in practice. However, reality shows that organizations face unexpected challenges in developing and implementing strategies and processes of intangible resources management. This article seeks to contribute to the improvement of IRM at the organization level by building a model that describes the process followed by organizations seeking to implement an intangible resources management system. Our study emphasizes the need of three phases: the identification of critical intangible resources for creating value; the measurement of these resources through a set of indicators and, finally, the monitoring of the resources and intangible activities. However, the management, monitoring and reporting on intangible resources is very idiosyncratic and unique for each organization; there is not a universal recipe, each organization should develop its own process.

A quality evaluation approach to disclosing third mission activities and intellectual capital in Italian universities

PurposeUsing the quality evaluation approach, the purpose of this paper is to analyze the contribution of intellectual capital (IC) to the development of the third mission in Italian universities, defining the impact of these activities in the regional context. This research aims to verify if the mandatory reporting on quality discloses the contribution of IC to value creation, enhancing the universities’ awareness about IC management and third mission development.Design/methodology/approachThe convergence between IC framework and quality evaluation approach is tested through an empirical research on a sample of 71 Italian universities funded by the government. Statistical analyses use data collected for the period 2004-2014 during the national assessment for research activity and third mission performance. The impact of third mission on the university ecosystem is verified using the indexes related to the territorial development rates.FindingsThis research found significant IC disclosure in the quality evaluation model and it highlights the possible integration between the IC measures and the quality evaluation indicators. The research findings show also a positive impact of third mission activities in the university ecosystem and the relevant role of structural capital and relational capital in the development of third mission. These findings encourage a collegial discussion in the university governance and among academics, stimulating a strategic behavior in the whole systemResearch limitations/implicationsThe paper focuses the attention on research activity and third mission, considering the final results provided by an external stakeholder of university. Further research must include the role of teaching activity and the opinion of universities’ managers, researchers and administrative staff.Originality/valueFollowing the neo-institutional sociology perspective, this research analyses for the first time the convergence between the solid experience of quality assessment and the immature IC culture in Italian universities. This analysis explores the value created by intangible activities in the university ecosystem, with a longitudinal perspective, contributing to the fourth stage of the IC literature.

Drawing value curves: lessons from financial statements of the world’s biggest manufacturing corporations

The aims of this paper are, first, to discuss the theory and the data for understanding global value chains (GVC); and second, to analyze the financial statements of the top manufacturing transnational corporations (TNC) in order to learn about value curves. The main contribution is the cost analysis through the financial statements of more than 250 public-listed manufacturing TNC. The conclusions are that smiles are not necessarily a fine image for GVC’ value-added curves, but more likely in high technology-intensive industries. Companies and industries whose expenditures are more concentrated in intangible activities, investing more in research & development (R&D) and/or in selling, general and administrative expenses (SG&A), tend to present higher margins than average.JEL classification: O14, O33, F14, L80.

The Impact of Tangible and Intangible Innovation Activities on the New Product Objectives in Three Phases of the Innovation Process: Case of the Fish Industry—Morocco

In any industry today, the act of innovation becomes a necessity. However, the understanding of innovation remains partial by most major Moroccan food companies, which have poor evaluation of food products. In this context, we have chosen to evaluate the performance of a new product through its degree of improvement in three stages of internal development: design, prototyping and production. Through the results, we first realized that the most important improvements in these three stages are those of time. These improvements are for the most part affected. In this article, we propose to discuss two aspects, namely the innovation process and its objectives, and the innovation activities contributing to the achievement of these objectives.

The relationships among brand experience, brandresonance and brand loyalty in experiential marketing:Evidence from smart phone in Taiwan

1.IntroductionExperiential marketing has become the main stream of marketing strategy in Taiwan during the last decade. Nevertheless, most of Taiwanese companies are used to taking the low-price competition or discounting marketing strategies to attract more consumers. During Taiwan economic development early stage, almost all the marketing strategies only emphasized delivering price information not the shopping experience of the customers. Over the past two decades, a plenty of studies have pointed out that the shopping experience has significant effect on consumer behavior [e.g. Kerin, Jain & Howard 1992; Swinyard 1993; Donovan et al. 1994; Sherman, Mathur & Smith 1997; Turley & Milliman 2000; Mattila & Wirtz 2001; Menon & Kahn 2002; Michon, Chebat & Turley 2005; Carpenter 2008; Jang & Namkung 2009; Darley, Blankson & Luethge 2010].The study tries to analyze the strategic experiential modules and employs the SEM model to build brand of experiential marketing. We adopt the definition of experiential marketing proposed by Schmitt [1999] to explore the relationship between brand experience and these dimensions in event marketing. Furthermore, we examine how brand experience affects customers to reach brand resonance and brand loyalty.The study aims to test the relationships among brand experience, brand resonance and brand loyalty in experiential marketing, we choose HTC as the empirical target company. There are two main reasons to explain why we choose HTC. First, undoubtedly HTC is one of the symbolic, representative Taiwanese globalized companies. HTC ranked Interbrand's annual ranking of the World's Most Valuable Brand in 2011, and was first and the only Taiwanese brand that listed The Ranking of The Brands Top 100. Besides, as usual, HTC was criticized for its brand marketing strategies. After struggling for years, HTC started to adopt all entirely new marketing strategy. This is another reason for selecting HTC as the targeted brand.The present study is structured as follows: firstly, we present a literature review; secondly, we describe the methodology used and specify the empirical model; then, we present analysis of the data and variables of the model; subsequently we present the empirical results; and, finally, we discuss the main conclusion and implications, limitation of the study.2.Literature review2.1.Experiential marketing and event marketingExperience, as defined within the realms of management, involves a personal occurrence with emotional significance created by an interaction with product or brand related stimuli [Holbrook & Hirschman 1982]. Holbrook and Hirschman [1982] pointed out that the consumer value is an experience that does not exist in the products purchased, on chosen brands nor on the ownership of the product, but in the process if consuming experience. Pine & Gilmore [1998] stated their view of experiential marketing in the manner: a person buy a service, he purchase a set of intangible activities carried out on his behalf. But when he buys an experience, he pays to spend time enjoying a series of memorable events that a company stages to engage him in a personal way. Experiential marketing is about taking the essence of a product and amplifying it into a set of tangible, physical, interactive experiences that reinforce it. Schmitt [1999] introduced a strategic framework for managing experiences called strategic experiences module including sensory experience (SENSE), affective experiences (FEEL), creative cognitive experiences (THINK), physical experiences, behaviors and lifestyles (ACT), and social-identity experiences that result from relating to a reference group or culture (RELATE). In a new era, it's critical to shift from the features and benefits approach advocated by traditional marketing to customer experience. Schmitt [1999] also suggested marketers or called experience providers employ experiential hybrids that combine two or more strategic experiences modules in or to broaden the experiential appeal. …

Intangible activities—the prevalence of informal helping in Denmark

ABSTRACT‘Informal helping’ is often associated with other types of prosocial behaviour such as formal voluntary work. Therefore, one could jump to the conclusion that it would be the same factors driving both types of activities. This article demonstrates that this is not the case. The study relies on a population survey on informal helping and volunteering in Denmark. The two contributions of this article are as follows: (1) it demonstrates that the socio-demographic indicators that are closely linked to formal volunteering are not related to informal helping in the same manner and (2) it demonstrates that it is necessary to separate the decision to help and the amount of hours that people help, a distinction that previous empirical studies on this topic fail to include. The results show that informal helping may not simply be compared to other instances of prosocial behaviour. In particular, the socio-demographic indicators that are closely linked to formal volunteering are not necessarily related to informal helping. Moreover, the results emphasize the need for including informal helping as an act of civic engagement, which ought not to be confused with other forms of engagement within the civil society.

Innovation in Global Value Chains: Co-location of Production and Development in Italian Low-Tech Industries

Buciuni G. and Finotto V. Innovation in global value chains: co-location of production and development in Italian low-tech industries, Regional Studies. Despite the spread of global value chains, recent studies suggest that disentangling tangible and intangible activities hinders innovation. Acknowledging the importance of the co-location of research and development (R&D) and manufacturing, this paper investigates the co-location rationale in three Italian industries. Drawing on a multiple case study, findings reveal that while innovation thrives on internationally dispersed functions, the execution of a specific bundle of development activities hinges on distinctive manufacturing knowledge. Evidence suggests that this innovation bundle is performed where industrial production occurs. Accordingly, this paper claims that it is the contiguity between development activities and production in manufacturing locales that ultimately supports innovation.

The Valuation of a Patent through the Real Options Approach: A Tutorial

AbstractThe importance of knowledge and other intangible activities for the success of an enterprise have been broadly recognized over the last few years. In this paper a tutorial is illustrated on the valuation of a patent through the real options approach (ROA), since the use of the discounted cash flow (DCF) methods, such as the net present value (NPV), seems to show issues when evaluating opportunities, such as the ones offered by intangible activities. The logic underlying ROA is tightly based on financial options and, in this sense, uncertainty can be seen as an opportunity, and not necessarily as a threat and its effect on the value of an activity can become positive. The patent analysed (registered in 2009) is a patent by the Alfa Group (this is not the real name of the firm but is used here for privacy reasons), which is a worldwide leader in the production of Getters, metallic elements that, through a chemical absorption process, keep the devices in which they are embedded in vacuum status. Such equipment is used in lightning systems, monitor screens, flat screen TVs, etc. In this tutorial, an ROA has been developed in order to demonstrate how the value of intangible assets can be estimated by using an Italian case study that can be useful for further studies and uses.

Health Care Providers’ Perspectives of Providing Culturally Competent Care in the NICU

To examine the experiences and perceptions of health care providers caring for new immigrant families in the neonatal intensive care unit (NICU). Qualitative design using grounded theory methodology. Two tertiary-level NICUs of two large metropolitan hospitals in western Canada. Fifty eight (58) health care providers from multiple disciplines. Health care providers were interviewed during seven focus groups. We recorded and transcribed focus group data. We analyzed transcripts via line-by-line coding, categorization of codes, concept saturation, and theme generation assisted through NVIVO software. Health care providers identified the nuanced construct of fragile interactions that is embedded within care of the new immigrant family in the NICU. During crisis, decision making, differing norms and beliefs, and language and communication are barriers that affected the fragile nature of interactions. During transition home, fragile interactions were affected by unintentional stereotyping, limited time for intangible activities, and lack of intuitive perceptions of the needs of new immigrant families. Health care providers employed caring and culturally competent strategies to overcome the fragile nature of interactions. Within the premise of providing family-centered care is the concept of honoring cultural, ethnic, and socioeconomic diversity; it is imperative that culturally competent care be considered and implemented as a separate stand-alone aspect when caring for new immigrant families.

Integration of the profit-split transfer pricing method in the design of global supply chains with a focus on offshoring context

This paper presents an optimization model for the design of global supply chains where the emphasis is made on transfer pricing for both tangible and intangible elements. We adopt the profit split transfer pricing method which is dictated by OECD guidelines and may be accepted by fiscal authorities. The proposed model is particularly suited for the offshoring context. In addition to transfer pricing, the model integrates several relevant decisions such as the location of tangible and intangible activities. Intangible activities refer to R&D and supplier management. Experimental analyses are conducted in order to prove the feasibility and the solvability of the model and to show the impacts of transfer pricing on supply chain decisions and profits.

The performance of entrepreneurial small‐ and medium‐sized enterprises

Innovation is an important driver of economic growth for it leads to new products and services, enhanced quality, and lower prices. In an increasingly competitive global market, innovation turns out to be essential to secure a viable competitive position. Although there is no perfect correspondence between accounting intangible assets and innovation activities, the association between these two concepts is close enough to take investment in intangible assets as a proxy for entrepreneurship and innovation. To identify differences between innovative and non‐innovative small and medium enterprises in the service industry, both descriptive and statistical analyses are performed on financial data for the period 2007–2009. The results obtained show that, although with some exceptions, innovative firms generally have better economic and financial performance than non‐innovative companies.

CALIDAD, SATISFACCIÓN Y VALOR PERCIBIDO DE LOS USUARIOS DE UN SERVICIO DEPORTIVO PÚBLICO

O objetivo deste estudo foi avaliar e desenvolver modelos para prever a qualidade, satisfação e valor percebido dos usuários do serviço desportivo. A amostra consistiu de 646 usuários. Cada sujeito preencheu um questionário cujas propriedades psicométricas deu validade. Os resultados obtidos mostraram que a qualidade do serviço desportivo recebido foi boa, tendo os factores técnicos os melhores valores, e as informações que são fornecidas para os usuários o ponto mais fraco. Também positiva foi a avaliação de satisfação e do valor percebido, que dependiam principalmente de um fator intangível, como são as atividades.

Modèles d'optimisation pour la conception des chaînes logistiques internationales

This paper presents a two-phase optimization approach for the design of global supply chains. The first phase is concerned with the strategic planning level while the second phase deals with the tactical level. We consider several international factors such as transfer prices of tangible and intangible activities. To model the transfer price, we adopt a realistic profit-based approach. The proposed model is finally illustrated by a case study.