Intangible Assets Research Articles

Analysis of knowledge creation practices and organisational performance in sports organisations: a comparative study

ABSTRACT In today’s world, organisations that can improve and develop their intangible assets and knowledge will be successful in the face of changes and can ultimately improve their performance. Given that the effectiveness of knowledge creation is influenced by culture, independent studies in different cultures are necessary. Therefore, the present study was conducted to analyse knowledge-creation practices and organisational performance in sports federations in Iran and Poland. Two researcher-made questionnaires were used to collect data. Statistical tests including Mann – Whitney U and regression were used to the data analysis. The findings showed internalisation in Poland and socialisation in Iran are the main predictors of organisational performance in sports federations. So, the managers of sports federations in Poland and Iran should use different knowledge creation practices to improve organisational performance. In both countries, however, the conversion of knowledge into tacit knowledge guarantees the improvement of organisational performance.

The Role of Secure Property Rights in Driving Economic Growth: A Review of Recent Evidence

This paper aims to briefly explain the factors contributing to economic growth, particularly emerging and developing economies, emphasizing the impacts of secure property rights. Tangible and intangible assets such as land and minerals, patents and copyrights offer the investors legal recognition that enhances investment, inventive activities and efficient market exchange. The review demonstrates how property rights reforms have positively impacted agricultural yields, credit facilities, and FDI in sub-Saharan Africa, Southeast Asia and Latin American countries. The paper also focuses on the impact of intellectual property rights on technological advancement, especially in knowledge-based societies. While the previous shows that there are gains in reforms in property rights, it has to be stated that there are still hurdles in the implementation of property rights reforms for the benefit of the more significant population due to the following: ? Finally, the paper reiterates the importance of efficient and precise laws and policies that will enhance the efficiency of the property rights to enhance the economic returns.

Innovation and firm characteristics: evidence from India’s company-level data

PurposeThis paper tries to explain variation in company-level innovation activities based on certain firm-level characteristics in India between 2010 and 2020.Design/methodology/approachProbit and Heckman’s two-step estimation based on panel data consisting of annual consolidated financial statements of 8,529 companies.FindingsFirm-level innovation activities were associated with larger company size, lower age, higher access to digital assets and voluntary expenses on environmental sustainability and social responsibility.Research limitations/implicationsThis paper is based on company-level financial statements and hence does not include aspects related to human capital, managerial capacities, participation in the global value chain and collaboration with other industries or academia.Originality/valueThis paper uses alternative measures of innovation such as promotional expenses and holding of intangible assets by companies in India alongside R&D expenditure, which is largely used in the past literature. The company characteristics also include emerging areas such as digitalisation, and spending on environmental sustainability and social responsibility, in addition to the conventional factors such as firm size, age and exposure to exports.

Non-financial asset valuation at higher education institutions: The theoretical and practical aspects

Subject. This article focuses on the issues of initial and subsequent valuation of non-financial assets at Russian higher education institutions. Objectives. The article aims to analyze the provisions of the accounting policy of educational institutions for higher education in relation to the valuation of non-financial assets, compare them with the Federal Accounting Standards, identify problematic aspects, and determine the areas for their solution. Methods. The regulations on the accounting policy of twenty six higher education institutions of Russia in relation to the valuation of non-financial assets are the basis of the study. For the study, I used observation, comparison, generalization, and interpretation. Results. The article presents the results of the analysis of the composition of costs incurred by institutions in the process of creating an object of fixed assets. It also offers recommendations on the inclusion of interest expenses on long-term liabilities in the initial cost of non-financial assets during their construction (creation) using own resources and options for assessing the value of replaced (disposed) parts of fixed assets, and a methodology for their calculation. A list of expenses included in determining the initial cost of intangible assets created by higher education institutions on their own is also presented. Conclusions. To improve the accounting of transactions for the acquisition and creation of fixed assets, it is advisable to establish the procedure for allocating the costs of delivery of several fixed assets in the accounting policy of educational organizations, determine the methods of attributing additional borrowing costs, as well as establish the criterion for the materiality of such expenses. It is concluded that higher education institutions should have a unified methodology for accounting costs when carrying out regular scheduled overhauls, technical inspections and maintenance of fixed assets.

Patents in metaverse: an analysis of scope and challenges

ABSTRACT ‘Metaverse’ is set to be the disruptive technology which is about to bring an overhaul in the functioning of myriad sectors ranging from education, entertainment, health care, businesses amongst others. The key feature of this technology is the immersion of physical world into a virtual world. Metaverse in a way finds its roots on the technologies of Virtual/ Augmented Reality (VR/AR) which essentially are about simulating real world and augmenting the real – world experience in the digital world. Intellectual Property Rights which exist for protection of intangible assets, hence are vital in perspective of Metaverse. This research analyses the IP form of Patents in reference to Metaverse. Patents are an attractive choice due to the commercial advantage and the higher level of protection it offers compared to other IP forms. The trend of surge in patent applications seen with emerging technologies like AI and Blockchain is likely to be reflected with metaverse. The article views the metaverse and patent domain through an overarching lens gauging the possible scope and challenges. The analysis is based on US, EU and Indian patent laws to get a comprehensive picture across the world.

Persistence in the benefits of foreign ownership: Evidence from divestment

AbstractIn this paper, we examine the persistence of benefits from foreign ownership, which informs the proper FDI policies. We exploit the divestment of foreign affiliates in South Korea from 2007 to 2019 as a quasi‐experiment to estimate such persistence of benefits. Our empirical analysis at firm‐level based on the propensity score reweighted difference‐in‐differences model leads to several conclusions. First, on average, the productivity benefit from foreign ownership does not persist after the divestment. Second, the productivity benefit of foreign ownership is persistent in firms with a higher absorptive capacity, measured by R&D intensity, intangible assets, and skilled workers. Such persistence is strengthened if the former foreign affiliate has a longer duration of ownership before the divestment. It suggests that absorptive capacity and time input are helpful for foreign affiliates to persistently absorb knowledge from their owners. Finally, we find that the productivity benefits of foreign ownership are less persistent at former foreign affiliates relying more on external trade.

Supporting management decisions for M&A transactions based on the strategic allocation of intangible assets

In the context of mergers and acquisitions (M&A), management decisions regarding asset allocation play a key role in determining the strategic value of intangible assets. This study investigates the allocation of such assets, particularly goodwill, in relation to enterprise value on balance sheets across global M&A transactions within the B2C sector from 2000 to 2021. Utilizing data from the Markables database, which includes 543 transactions, this study presents robust and quantile regression analyses to effectively address challenges arising from non-normally distributed data. The findings underscore a significant correlation between the strategic allocation of intangible assets, especially goodwill, and enterprise value, highlighting their essential role in reflecting future earning potential and growth prospects. Additionally, the study reveals specific factors, including transaction type (asset vs. share deals) and timing (transaction year), that influence these asset allocation decisions. These insights are critical for enhancing management decisions in valuation and strategic financial planning during M&A. By elucidating these dynamics, this paper significantly contributes to the literature on management accounting and corporate finance, offering a granular understanding of the valuation of intangible assets in business combinations. Acknowledgment This study emerged from a cooperative project between the University of Applied Sciences Kufstein (Austria) and the University of Economics in Bratislava (Slovakia) 2023-05-15-003 “Enhancing long-term business value towards environmentally and socially sustainable economy,” which was funded by the performance committee of the Austria-Slovakia Action initiative.

The impact of ESG performance on intangible assets and intellectual capital in the food and beverage industry

PurposeThis study investigates how environmental, social, and governance (ESG) factors influence intangible asset and intellectual capital valuation within the food and beverage (F&B) industry. By examining and contrasting global and European contexts, the research highlights ESG’s critical role in shaping the economic dimensions of sustainability across different regulatory environments. The results provide essential insights for stakeholders aiming to enhance corporate value through responsible business practices.Design/methodology/approachWe adopt a quantitative fixed-effects panel regression analysis for ESG performance and intangible asset and intellectual capital values. The correlations between these variables are explored both globally and in the European Union using 1,034 observations from 502 F&B companies.FindingsGlobally, higher ESG performance corresponds to lower intangible asset values, a trend not observed in the European Union. Further, high ESG performance is associated with a decrease in intellectual capital value, suggesting that internal organisational efforts in this area should be rewarded in terms of short-term value.Originality/valueThis study provides a new understanding of the relationship between ESG performance, intellectual capital, and the F&B industry operating environment, highlighting the complexity and challenges associated with integrating ESG practices.

The Legal Nature of Emission Rights – International Experience and Vietnamese Law

The carbon emission rights market effectively controls emissions activities and develops the economy. The market's stability will depend on determining the legal nature of the objects allowed to circulate in that market. However, carbon trading markets worldwide have yet to reach a consensus in determining the legal nature of carbon emission rights. The article shows that national laws have different approaches to the legal nature of carbon emission rights in one of the following cases: (i) Just an administrative tool; (ii) Is an object of ownership, which is divided into goods or financial instruments; (iii) Is subject to ownership rights but is limited; (iv) Determined flexibly. The article reviews international experience in determining the legal nature of emission rights. Based on that, the article explores the factors determining the legal nature of carbon emission rights. Specifically, the paper determines that the right to emit carbon qualifies as an asset and should be classified as an intangible asset.

THE ROLE OF INTANGIBLE RESOURCES IN DRIVING VALUE CREATION AND SUSTAINED COMPETITIVE ADVANTAGE FOR BUSINESSES

This research investigates the role of intangible resources in fostering and sustaining competitive advantages within firms. The study surveyed 284 managers and CEOs from a diverse array of companies, collecting data via a structured questionnaire. The collected data were then analyzed using multiple linear regression techniques implemented through SPSS software. The findings underscore the pivotal role of intangible resources in creating and maintaining a competitive edge. These resources were found to be critical in value creation processes that drive long-term strategic advantages. The study’s conclusions emphasize that firms focusing on the development and strategic management of intangible assets can achieve and sustain superior performance in their respective markets. This research adds to the growing body of literature by empirically validating the significance of intangible resources in competitive strategy and offers practical implications for managers aiming to leverage these assets for sustained competitive success.

Corporate digital transformation and financing constraints: The moderating effect of institutional investors

In the age of digitization, digital transformation has emerged as a crucial pathway for companies to achieve sustainable development. In a sample of 24,103 firm-year observations from 3,508 listed companies in China's A-share market between 2007 and 2020, we investigate the relationship between corporate digital transformation and financing constraints based on dynamic capability theory. The proportion of intangible assets dedicated to digital technology is employed as a measure of the degree of digital transformation, and the SA index is utilized to assess the level of financing constraints. The findings demonstrate that digital transformation plays a significant role in alleviating financing constraints. In addition, greater institutional ownership leads to a pronounced negative correlation between digital transformation and financing constraints. From the perspective of dynamic capability theory, this study provides empirical evidence supporting research on economic consequences associated with digital transformation. Our results may contribute towards government formulation and implementation of policies promoting digital transformation to create a supportive external environment for businesses. Companies must seize opportunities associated with digital transformation to mitigate financing constraints.

Unlocking Employee Innovative Behaviour: Exploring the Power of Transformational Leadership and Tacit Knowledge Sharing Among Indonesian White-Collar Workers

Abstract Research purpose. The study explores the impact of transformational leadership on innovative employee behaviour, with tacit knowledge sharing as a mediator. This contributes to existing literature on the dynamic interplay between transformational leadership, employee innovation, and tacit knowledge sharing within organisational contexts. Design / Methodology / Approach. The study used a cross-sectional research design to examine relationships between the variables. 450 questionnaires were distributed among white-collar employees in Greater Jakarta, and a high response rate of 91.2% was achieved. Using the widely accepted Partial Least Squares Structural Equation Modelling technique, the study further analysed the hypothesised relationship among transformational leadership, tacit knowledge sharing, and innovative work behaviour. Findings. As evident from the study, transformational leadership would play a major role in influencing the level of sharing of tacit knowledge among employees and, therefore, would result in a supportive, innovative environment. It also has a direct effect on the employees to behave in an innovative way by the inculcation of new ideas or changes. Tacit knowledge sharing is positively related to innovative behaviour. Transformational leadership also indirectly affects innovative behaviour via tacit knowledge sharing. The model explaining these linkages was also further evidenced to be effective through the conduction of structural equation modelling. Overall, the results underline transformational leadership as a critical success factor for a knowledge-sharing culture and innovation development within the organisation, either directly or indirectly. Originality / Value / Practical implications. The research topic area also encompasses the role of tacit knowledge sharing in mediating the relationship of transformational leadership with innovative work behaviour and, hence, reveals the connection between leadership and innovation through knowledge exchange. It places transformational leadership in a discourse of knowledge management and outcomes of innovation, which points to the general importance of intangible assets and specifically to knowledge sharing. The empirical findings supported the idea that transformational leaders provide a climate where sharing tacit knowledge is an important aspect of organisational innovation. This review, therefore, focuses on the knowledge management, innovation, and leadership literature, with the aim of providing a multidisciplinary overview that would be helpful for readers in management, organisational psychology, and business innovation. This is the approach of leadership development by organisational leadership. HR professionals need to focus on strategies supporting the inculcation of a culture of sharing tacit knowledge around innovation. It ought to support measurement approaches for evaluating effectiveness in leader-led efforts to promote innovation and knowledge exchange.

Effect of Intangible Assets on the Financial Performance of Nigeria’s Deposit Money Banks

Effect of Intangible Assets on the Financial Performance of Nigeria’s Deposit Money Banks

Do Reported Intangible Assets Create a Better Information Environment?

Purpose: This study investigates whether the identifiable intangible assets (IIA), goodwill (GW), and research and development expense (R&D) reported in the financial statements and annual reports of firms on the Stock Exchange of Thailand (SET) can improve the information environment, as represented by a narrower bid-ask spread in the capital market. Additionally, this study explores the impact of intangible asset disclosure scores on the information environment. Design/methodology/approach: This study tests the association between reported intangible assets, intangible asset disclosure score, and bid-ask spread. The sample is 2,691 firm-year observations in SET from 2012-2021, and ordinary least squares (OLS) regression is used to test the hypothesis. Findings: The results found that IIA and R&D are associated with the information environment. It is reported that IIA and bid-ask spread have a positive relationship, whereas R&D and bid-ask spread have a negative relationship. In addition, the intangible asset disclosure score can also reduce bid-ask spread. Research limitations/implications: This study highlights the benefits of intangible assets, which can help bridge the information gap. However, the intangible asset disclosure score is determined through self-index construction. This process involves discretion and may be prone to errors. Furthermore, using the bid-ask spread as the sole indicator of the information environment might be inadequate. Originality/value: Research on information asymmetry about intangible assets in Thailand is scarce. This study provides empirical evidence to support the benefit of some intangible assets in reducing asymmetric information among investors. By utilizing the intangible asset disclosure score, including mandatory and voluntary disclosure, it is also possible to observe how different disclosure quality levels impact the information environment.

Renewal of Intellectual Property Execution Auction Regulations to Support Creative Economy Actors Financing Schemes

Government Regulation Number 24 of 2022 concerning the Implementation of Law Number 24 of 2019 concerning the Creative Economy aims to optimize intellectual property as credit or financing collateral for creative economy actors. From the banking side, intellectual property as an object of collateral cannot be implemented for various reasons, including those related to the execution of intellectual property in the event of bad credit or financing. Eventhough auction regulations recognize intellectual property as intangible assets that can be executed, they still don’t provide legal certainty for both creditors and debtors. This research aims to analyse regulatory constraints in intellectual property execution auctions and renewal in auction regulations that need to be carried out to support creative economy financing schemes. This research uses a normative juridical approach with analytical descriptive research specifications and qualitative juridical data analysis. Based on the research, the following results were obtained: Although intellectual property is recognized as an object of execution auctions, regulation haven’t provide certainty regarding the execution mechanism, especially regarding the transfer of intellectual property rights. So, the idea is to make the rules stricter so that execution auctions can support intellectual property-based financing schemes for people working in the creative economy.

The spatial effect of low-carbon development of regional industries driven by the digital economy: evidence from Chinese cities

Utilizing data that encompass municipalities and regions within China at the prefectural level and beyond, spanning the period from 2012 to 2021, this study employed the spatial Durbin model to assess the spatial spillover impact of the digital economy in propelling low-carbon advancement within regional physical industries. This investigation elucidates the spatial spillover mechanism that underlies the low-carbon evolution of regional industries catalyzed by the digital economy and offers nuanced insights. The findings delineate the following observations: (1) The digital economy propels the low-carbon progression of indigenous physical industries and stimulates the low-carbon development of proximate regions’ physical industries through discernible spatial spillover effects. (2) The spatial spillover ramifications of the digital economy manifest a substantive correlation with urban attributes, including geographical positioning, population size, and market integration levels. Notably, municipalities situated in the southeast coastal region, those characterized by larger population sizes, and those exhibiting heightened market integration levels show greater spatial spillover effects attributable to the digital economy. (3) The safeguarding of intangible asset equity property, a pivotal institutional underpinning for fostering digital economic development, amplifies the spatial spillover effect of the digital economy in propelling low-carbon development within regional industries. (4) As geographical and spatial distances expand, the spatial spillover effect of the digital economy attenuates, indicating a diminishing influence with increasing spatial separation.

Impact of Digital Marketing And Intellectual Capital On Business Performance (Case Study Of SMEs In Depok City, West Java)

This study explores the impact of digital marketing and intellectual capital on the business performance of SMEs in Depok City. Using a quantitative approach, this research analyzes data obtained from 100 respondents through online questionnaires. The results of multiple linear regression analysis indicate that both digital marketing and intellectual capital have a significant influence on business performance. Digital marketing, measured through variables such as interactivity, site design, cost/transaction, and incentive programs, has been proven to increase customer engagement and online transaction volumes. On the other hand, intellectual capital, consisting of human capital, structural capital, and relational capital, plays a crucial role in enhancing the operational efficiency and profitability of companies. Business performance measurements in this study include profitability, operational efficiency, and customer satisfaction. The coefficient of determination (R²) value of 77.2% indicates that the digital marketing and intellectual capital variables together explain most of the variability in business performance. These findings are consistent with previous studies showing that the use of digital technology in marketing and the management of intellectual capital can enhance a company's competitiveness and overall performance. Thus, this research makes a significant contribution to the literature on digital marketing and intellectual capital management, offering practical insights for business practitioners to improve their marketing strategies and intangible asset management.

Air India pee gate case – need for comprehensive SOPs in customer management

Learning outcomes This case study allows students to appreciate the value of standard operating procedures in customer management. This case study emphasises the role of employees in delivering superior customer experience. This case study explores many facets of customer experience, reputation, social class membership and standard operating procedures (SOPs). Students will be able to apply theories of customer experience, behavioural psychology and service dimensions relevant to the airline industry. After completing this case study, students will be able to do the following:1. Evaluate the value of SOPs in Customer ManagementThis case study refers to the need for adhering to SOPs to deal with complex situations. Students will be able to evaluate whether compliance to SOPs could have helped Air India avoid the crisis or was it possible that a culture of absolute commitment to customer wellbeing could have prevented the crisis.2. Apply the theory of defensive attribution in customer grievance handling. Discuss if reducing customer effort in getting their problem solved can result in superior customer service.The victim had attributed the blame for not insisting on filing a complaint to the crew. Air India crew had defended their actions or lack of it by stating that they had followed the rule book. Students will be able to appreciate the need for a swift redressal mechanism to protect the self-image and self-esteem of the person/group involved. They will also understand that customer service interactions designed to solve customer problems swiftly and easily can be a very simple dictum to guide all employees in their decision-making while handling a customer complaint. 3. Evaluate the relationship between customer satisfaction and customer experience and examine the value of net promoter score (NPS) to study customer satisfaction. Air India Airlines was catering to varied customer groups such as the Indian diaspora, large student population pursuing education abroad, first-time flyers and the rising middle class with travel aspirations. Customer expectations vary across segments and change over their lifetime. Airline staff must trace customer corridors and deliver on customer expectation across the touch points that matter to them to ensure meaningful and relevant service delivery. Students will have an opportunity to evaluate the NPS in measuring customer satisfaction and debate whether it is a sufficient metric to guide the organisation on delivering and monitoring customer experience. 4. Examine why reputation risk management and not crisis management should be the focus of Air India in delivering superior customer service because nearly 70%–80% of market value for a company comes from its intangible assets such as brand equity and reputation. Students will discuss crisis management i.e. handling the threat to reputation after it has occurred and reputation risk management i.e. proactively managing potential threats to its reputation by taking timely actions to avoid or mitigate it. There are three factors (reputation reality gap, changing beliefs and expectation and weak internal coordination) that determine reputational risks. Students can evaluate this model to determine if Air India should address these three factors to manage its reputation proactively. Case overview/synopsis This case study is set around an incident that happened on 26 November 2022, on Air India flight bound for Delhi from New York when an inebriated 34-year-old man had peed on a 72-year-old woman. The perpetrator of the crime had walked free, and the victim was left dissatisfied with how the cabin crew had handled her ordeal. Air India Airlines was launched in 1932 by industrialist JRD Tata and nationalised in 1953. In 2021, Tata Group acquired the 90-year-old Air India from the Government of India for $2.4bn (INR 18,000 crore) and appointed Campbell Wilson as chief executive officer and managing director. The incident brought to the fore the customer management issues that Wilson had to address. First on the list of Air India’s turnaround plan was delivering “exceptional customer experience”. How was it going to achieve it because the Indian aviation ecosystem lacked infrastructure such as airports, airspace, competition and customer preference-based services? There was also shortage of pilots, engineers, technicians, air-traffic controllers and technocrats to occupy positions within security agencies and regulatory bodies. With Air India’s acquisition, the Tata Group had to find innovative solutions to deal with decades of internal neglect, non-performance and labour union problems. This case study is relevant to address real issues of customer experience, consumer psychology, reputation risk management and standard operating procedures in service management. Complexity academic level This case is suitable for both undergraduate and postgraduate level students of business management. It can also be used for training service personnel of aviation industry. Supplementary materials Teaching notes are available for educators only. Subject code CSS 8: Marketing

Goodwill Valuation Enhancement through Capitalization Method and Statistical Impact Analysis

The valuation of Goodwill (GW) has remained one of the several critical issues in financial analysis. This aspect is particularly important for mergers and acquisitions due to the significance of intangible assets. This study delves into the capitalization method of super profit (CMSP), a prominent technique for GW valuation, enhanced by the integration of statistical tools. Assessing a company’s excess profits over its average return on tangible assets is part of the CMSP. Finding the variables that have a significant impact on GW valuation, such as average profit, capital employed, and rate of return, is the main goal of this research. These issues are thoroughly investigated through statistical analysis to give stakeholders useful information for well-informed decision-making. Additionally, the study seeks to identify the external elements influencing this process as well as the internal aspects influencing GW valuation. Regression analysis, correlation matrices, response analysis and ANOVA are used to improve GW assessment and comprehension of the complex relationships between different factors.

Intangible and Tangible Investments and Future Earnings Volatility

This study delves into the impact of intangible and tangible investments on future earnings volatility within the European financial market context. Drawing from International Accounting Standards (IAS) 16 and 38, we examine the intricate relationship between fixed assets, expenses, and the uncertainty surrounding forthcoming earnings. Our analysis reveals that intangible assets, often associated with heightened uncertainty and risk, contribute to increased earnings volatility compared to capital expenditures. Furthermore, we find that capitalizing intangible assets serves to alleviate uncertainty, resulting in lower earnings volatility compared to expensing them. Our exploration of industries’ effects further reinforce these findings, with the effect of intangible and tangible investments on earnings volatility being more pronounced in high-tech industries than in low-tech industries. Additionally, our robustness test, utilizing goodwill as a proxy for intangible assets and property, plant, and equipment as a proxy for tangible assets, yields consistent results, further bolstering our findings.