Intellectual Capital Practices Research Articles

Effect of Green Intellectual Capital Practices on the Competitive Advantage of Companies: Evidence from Polish Companies

The purpose of this research was to determine the impact of Green Intellectual Capital practices on the competitive advantages of companies in Poland. The study included 150 Polish producing enterprises located across Poland. The first stage of the analysis was an assessment of the level of impact of GIC practices on the competitiveness of the studied organizations with the use of the 5-point Likert scale. The second stage involved an investigation into the correlation between the rating of the impact of GIC practices and their implementation on the basis of the Spearman’s rank correlation coefficient and the regression function. In the course of this research, it was determined that GIC practices had an impact on the competitiveness of organizations and that the impact varied according to the GIC component. Polish managers hold that the major impact was attributed to Green Organizational Capital. The impact of the component was rated at 2.4 on the adopted 5-point scale. In turn, the impact of Green Human Capital and Green Relational Capital was only 2.1. The identification of the correlation between GIC practices and the competitiveness of organizations provides an opportunity for the managers to better understand how companies can achieve a competitive advantage through investment in green intellectual capital. The research findings may, therefore, generate increased interest in GIC development in companies.

Green Accounting and Green Intellectual Capital Practices: Study of The Influence of Indirect Financial Firm on Firm Value

This study aims to develop and analyze the effect of green intellectual capital, green accounting and financial performance on firm value (price book value/PBV proxy), develop and analyze the effect of green intellectual capital and green accounting on firm value (price book value/PBVproxy) mediated by the financial performance of the Indonesian Biodiversity Sustainable and Responsible Investment (SRI) Index (KEHATI) for the 2015-2020 period. Novelty in this study developed by the concept of green intellectual capital and green accounting to reduce greenhouse emisions and pollution to increase firm value. The sample used is 75 samples from 14 stocks with purposes sampling method. Data collection is obtained through an annual report published on the IDX’s official website, that is www.idx.co.id and a sustainability report. The results showed that green intellectual capital (green human capital/GHC and green relational capital/GRC) had no significant effect on firm value (PBV proxy), green intellectual capital (GHC, and GRC) had a significant positive effect on financial performance (ROA proxy), financial performance (ROA proxy) has a negative affect on firm value (PBV proxy) and financial performance (ROA) is able to mediate green intellectual capital on firm value (PBV proxy).

Information system assisted knowledge accounting and cognitive managerial implications

PurposeThis paper examines issues that focus on the importance of accounting data generated knowledge information and its role in modern business. The cognitive aspect of this research reflects the ability of companies and its employees to apply knowledge for managerial purposes using accounting data.Design/methodology/approachUsing a questionnaire, a five-factor model related to information communication, information cognitive utilization, functional optimization, applicability and cognitive efficiency was created.FindingsFindings present a series of complex correlations highlighting possible actions to utilize knowledge as a tool for management. Information is obtained regarding the management of knowledge and the adoption of information systems.Research limitations/implicationsThe results reflect the limited implementation of intellectual capital practices and understanding of knowledge as a financial tool for executives and employees. Based on the above, an attempt was made to formulate the questions for the careful identification of the factors.Practical implicationsRapid developments in information and communication technologies, together with a realization that knowledge is a resource of general and cost strategic importance, changed the operational structures of companies, shifting value from materials to intangible assets. This paper demonstrates how multiple variables are correlated and how small changes could help increase intellectual capital and facilitate the construction of knowledge based systems.Social implicationsThe need for an accounting valuation of intellectual capital in order to present the true picture of business value is evident. This paper illustrates factors such as interactive communication and systematic cognitive efficiency or the monetization of information as a preliminary step for future valuation and management intellectual capital models.Originality/valueDirect access to sufficient and reliable information, lead to the search for effective tools for the creation, aggregation and exchange of knowledge. The latter becomes a key goal for information systems. Emphasis is placed on the benefits and critical success factors of knowledge management systems, as essential information systems to support and enhance organizational processes.

Does intellectual capital efficiency improve the corporate social responsibility of Egyptian firms?

PurposeCorporate social responsibility (CSR) has been one of the main subjects for companies’ sustainability in contemporary years. Engaging in CSR practices has been recognized to be beneficial for firms since it might create value for firm in the market. The process of creating value in recent era has been controlled by firms’ hidden resources and simultaneously the concept of value added intellectual capital (VAIC). This paper aims to determine whether intellectual capital (IC) and each of its three constituents (human capital efficiency [HCE], capital employed efficiency [CEE] and structural capital efficiency [SCE]) can generate improvements in CSR in an emerging market.Design/methodology/approachUsing the Egyptian Corporate Responsibility (S&P/EGX ESG) index and extracting accounting data from the annual reports of companies listed on this index, an empirical analysis that considers VAIC and its elements was accomplished on a sample of 267 firm-year observations for a nine-year period beginning in 2010.FindingsThe empirical results of the multivariate regression indicated that Egyptian companies active in using IC have more tendency to engage in CSR practices. In addition, it is shown that HCE positively influences CSR practices, while SCE has a negative association with such social activities, and CEE has no significant relationship with CSR activities.Practical implicationsThe results of the research have some implications through offering an enhanced understanding of using IC and CSR practices that might be in favor of several investors, regulatory bodies and scholars concerned with firms’ social activities. Besides, it provides empirical evidence that the efficient use of IC provides advantages not only for the stockholders but also for the community.Originality/valueTo the best of the authors’ knowledge, this study is one of the first studies to investigate Egyptian firms for IC and CSR topics. In addition, this study provides empirical evidence on this relationship from the Egyptian environment that is different from other cultural and institutional environments in which previous studies were conducted.

Ownership structure and intellectual capital: empirical evidence for Jordanian listed firms

The main objective of the current study is to examine the impact of ownership structure on intellectual capital (IC) disclosures from a stakeholder theory perspective. The current study employs a disclosure index approach to examine the extent of structural and relational capital disclosures of Jordanian listed firms with data from 2012 to 2018. Ordinary least squares regression models for structural capital, relational capital, and overall IC disclosures are employed. The findings show a negative significant impact of management ownership on relational capital disclosures, a positive impact of foreign ownership on relational and overall IC disclosures, and a positive impact of institutional ownership on all three IC models. Hence, our study suggests that managers are not inclined to provide relational capital disclosures for the benefit of stakeholders. Moreover, it suggests that foreign investors require lower information asymmetry, which leads to measures being taken to enhance IC practices. We believe that our study adds knowledge to the current IC literature since it provides empirical evidence concerning knowledge-based IC disclosures in emerging markets such as Jordan.

Stakeholders’ perceptions of sustainable development of higher education institutions: an intellectual capital approach

PurposeThis study aims to identify stakeholders’ perceptions of the effects associated with different components of intellectual capital (IC) on the sustainable development (SD) practices of higher education institutions (HEIs).Design/methodology/approachThe empirical approach uses a structural equation model to provide new empirical findings in relation to 738 students and 587 lecturers/researchers at seven Portuguese state HEIs through quantitative research.FindingsThe results obtained are, firstly, important contributions to the literature on the IC and SD practices of HEIs, as a relationship between these two constructs is confirmed, especially through relational capital (RC) and structural capital (SC). Secondly, the stakeholders considered show different perceptions of the influence of the components of HEIs’ IC on these institutions’ SD practices, and thirdly, perception of the economic dimension is most influenced.Practical implicationsThe empirical findings indicate the need to provide better information about HEIs’ policies and practices of SD and how the latter contribute to the SD of the institution and its region of influence.Originality/valueNo previous studies investigate students and teachers/researchers’ perceptions of the social, environmental, economic and organizational dimensions of SD in HEIs and at the same time how those perceptions can be influenced by the components of IC (e.g. human capital, SC, RC) in that institution.

Does the efficiency of corporate governance and intellectual capital affect a firm's financial distress? Evidence from Egypt

PurposeUsing data on 51 firms traded in the Egyptian Exchange from 2014 to 2016, this paper aimed to assess the efficiency of corporate governance (CG) and intellectual capital (IC) practices and to explore their influence on the probability of a firm's financial distress.Design/methodology/approachThe relative efficiency of CG and IC practices has been measured under the Malmquist data envelopment analysis model. A modified Z-score model was applied to assess firms' financial distress.FindingsThe Wilcoxon signed-rank test revealed almost insignificant evidence regarding the improvement of CG and IC efficiency over the study period. The efficiency score of CG practices had no impact on the likelihood of financial distress. However, the efficiency score of IC negatively affected the probability of financial distress.Research limitations/implicationsThe integration of data envelopment analysis with Tobit regression was required for identifying the significant drivers of efficient CG and IC.Practical implicationsThe findings shed light on the role of CG and IC in alleviating the degree of financial distress in Egypt as an emerging market, especially the need to raise firms' compliance with the Egyptian CG code from a voluntary to mandatory status.Originality/valueThis study, using Malmquist data envelopment analysis, is among the first attempts to assess the relative efficiency of CG and IC practices and their effects on financial distress.

Intellectual Capital in Practice in the Public Sector: Developing a Conceptual Framework for the ‘Third Wave’

Throughout the world, public sector organisations are under continuous pressures from various stakeholders for performance improvement. Public sector, just like corporate sector is also utilising intellectual capital (IC) in various ways and it is being argued that IC as a strategic resource can also help in improving the performance of this sector. However, research on intellectual capital in public sector is still very scarce, and especially, in the context of developing countries, almost non-existent. The IC body of knowledge has evolved through various stages and currently it is moving towards the fourth stage. This paper is focussing on the third stage of ‘IC in practice’. The third stage of IC research advocates the complex and idiosyncratic nature of intellectual capital and stresses on researching ‘IC in action’ i.e., IC practices and managerial implications rather than measuring it. This theoretical paper aims to propose a framework to explore IC phenomenon in the knowledge intensive public sector organisations of a developing country (Pakistan). It raises the issues of the role of IC in value creation or destruction in the public sector and practices associated with intellectual capital, in such organisations which do not have explicit IC management strategies however, through their practices these organisations are managing it. It also develops a conceptual framework which proposes to study the IC practices of the public sector organisations through performative IC, social construction, and structuration lenses in order to grasp the complexity of conceptualising the IC, its particular nature, failure of generalisation of the IC grand theories, and development of IC body of knowledge. This framework focuses on understanding the phenomenon and its role in public sector organisations.The framework contributes towards the IC in Practice perspective of IC body of knowledge in the specific context of public sector organisations in a developing country and suggests that by adopting an appropriate methodology, the practices, management, and development of IC can be better comprehended through this framework.

Managers’ views on how intellectual capital is recognized and managed in practice

PurposeThe purpose of this paper is to advance the understanding of how intellectual capital (IC) unfolds in practice in organizations. This is done by answering the research question of how IC is recognized and managed in practice as expressed by managers.Design/methodology/approachAn explorative, empirical and multiple case study was conducted, investigating four Swedish firms.FindingsThis paper illustrates how IC was recognized and managed in practice despite managers expressing uncertainty of what the IC concept means. More or less direct, formalized and purposeful ways were adopted. The IC elements and practices most important from a management perspective were those aligned with the overall strategy, but were seldom what was visible in financial reports.Research limitations/implicationsThe use of an explorative, multiple case study limits the generalizability. However, the rich view gained of how IC unfolds in practice may not always be possible using large sample, survey-studies. Future research is therefore suggested to take this paper’s insights further and investigate IC in other organizations and in other national contexts.Originality/valueThis paper responds to the calls for third stage IC research, by showing how IC management in practice may not be as clear and straightforward as researchers tend to assume. It also adds to the importance debate on IC accountingization, by reflecting on how an accounting dominance may not fully capture IC inside organizations. A number of practical contributions are also made.

Intellectual capital accounting in the age of integrated reporting: a commentary

Purpose The purpose of this paper is to explore the extent to which the practice of integrated reporting (IR) in organisations can be a vehicle for furthering and sustaining the practice of accounting for intellectual capital (IC). It introduces the eight papers forming this Journal’s special issue on “Extending Intellectual Capital through Integrated Reporting” that demonstrate how organisations are developing practices at the nexus of IC and IR. Design/methodology/approach The paper takes the form of a review of the eight papers, and it connects the outcomes from these papers into some future research directions based on an interpretive approach and the authors’ expertise on IC and IR. Findings The papers published in this special issue provide a useful foundation for extending the research project on IR-led IC accounting. However, there is a lack of research in this special issue that goes much beyond third-stage IC research, which is directed at strengthening IC practices inside organisational boundaries. Research limitations/implications This commentary highlights that IR provides many opportunities to reinvigorate the field of IC accounting. Insights provided in this commentary may be relevant to understand and evaluate future iterations of IC accounting. Practical implications While it is essential to understand how IR works in practice moving beyond organisational boundaries it is even more critical if companies are to survive and thrive in an increasingly turbulent business operating environment. Thus, this commentary offers arguments as to how IC and IR research can extend into fourth and fifth stage research paradigms. Originality/value This commentary places the eight papers published in the Journal’s special issue on “Extending Intellectual Capital through Integrated Reporting” within the context of IC accounting to explain the trajectory of research that connects IC and IR and reveals gaps in this field of research.

Report for Intellectual Capital Practices in Bahrain and GCC

I will summarize a lot of articles and news about intellectual capital as a part of learning how to build the literature you will found the articles and web links in the reference part of this summarized report: This report deals with the issue of intellectual capital, as it is applied in the State of Bahrain and the Gulf Cooperation Council countries. What is the benefit of this system for the user of the company? how it develops and provides the sustainability? and profitability of companies and it is one of the most important elements that we should not lose sight of.

Guess who’s coming to dinner: the case of IC reporting in Italy

In the last 2 decades, intellectual capital (IC) reporting has been promoted with the idea that it can lead to internal (managerial) and external (disclosure) benefits. Studies have been conducted to understand whether and how reporting IC can help to realize the benefits usually attributed to it and, consequently, which are the levers and the obstacles that may influence the fate of IC reports. While technical and procedural barriers have been thoroughly investigated, the relevance of specific actors in influencing the adoption of IC Reports seems to be overlooked. The aim of this paper is to investigate what actors influence the adoption and the fate of an IC report and how they influence these reports. In other words, the paper focuses on the institutionalization or (non) institutionalization of IC practices. In order to achieve this objective, the results of an exploratory field study conducted through semi-structured interviews referred to Italian companies that adopted an IC report will be presented. The main finding of this study is that, in an IC reporting project, the political, technical, and cultural agents, i.e. the project leaders, the project sponsors and the external partners (consultants, researchers, etc.), are not only relevant but they must coexist and cooperate over time. When one of the agents is missing the IC project tends to fail, unless the agent’s skills are transferred to another agent, either an already existing or a new one. In this case, the original development trajectory of the project may change.

Knowledge management and intellectual capital in networks of small- and medium-sized enterprises

PurposeThe purpose of this paper is to propose a theoretical-conceptual model supporting the analysis of the effects of small- and medium-sized enterprises (SMEs) networks on knowledge management (KM) and intellectual capital (IC).Design/methodology/approachThe paper reviews literature on KM, IC and networks theories. The role of SMEs networks on KM and IC was discussed, analysing previous studies that supported the proposition of the model in question. In such model SMEs networks are seen as knowledge networks which are analysed in terms of the network formation process, the context, the strategy, the organisational culture and the stimuli for the sharing of knowledge. KM is observed in terms of knowledge creation, systematisation and sharing. Finally, IC encompasses human capital, structural capital and relational capital. It is noteworthy that KM and IC were considered deeply and closely related.FindingsThe conclusions obtained help to fill an important gap in the management, accounting, KM and IC literature, showing that the processes of creating, acquiring, maintaining, systematising and sharing information and knowledge and IC generation in SMEs networks can be influenced by the network formation process, by the organisational context, as well as by the strategy, organisational culture and stimuli to sharing knowledge.Research limitations/implicationsThe paper provides a theoretical contribution by increasing understanding of the effect of SMEs networks on KM and IC practices – an understanding still at the early stages in the literature. Moreover, the originality of the model proposed extends the relevance of this research, as the literature does not contain a sufficiently established and tested approach that simultaneously provides a clear view of the relations between SMEs, networks, KM and IC, highlighting how SMEs can use networks as a strategy to achieve a more effective management of the knowledge assets forming IC. So, the paper offers several avenues for future research.Practical implicationsBased on previous empirical research, it was perceived that the original model presented in this paper is consistent, collaborating to improve management practice, providing a competitive benchmarking process. This can allow analysts, managers and other decision makers, by using SMEs networks to improve organisational performance, innovation, sustainability, competitiveness and value.Originality/valueThe paper presents an innovative theoretical-conceptual model focussed on the role of SMEs networks on KM and IC, indicating a strong link between the former and the latter in such enterprises in terms of performance, innovation, sustainability, competitiveness and value, an issue whose understanding, although quite relevant, is still incipient in the literature.

Intellectual capital in the age of Big Data: establishing a research agenda

PurposeThe purpose of this paper is to contribute to the literature on intellectual capital (IC) in light of the emerging paradigm of Big Data. Through a literature review, this paper provides momentum for researchers and scholars to explore the emerging trends and implications of the Big Data movement in the field of IC.Design/methodology/approachA literature review highlights novel and emerging issues in IC and Big Data research, focussing on: IC for organisational value, the staged evolution of IC research, and Big Data research from the technological to the managerial paradigm. It is expected that identifying these contributions will help establish future research directions.FindingsA conceptual multi-level framework demonstrates how Big Data validates the need to shift the focus of IC research from organisations to ecosystems. The framework is organised into four sections: “why” – the managerial reasons for incorporating Big Data into IC; “what” – the Big Data typologies that enhance IC practice; “who” – the stakeholders involved in and impacted by Big Data IC value creation; and “how” – the Big Data processes suitable for IC management.Research limitations/implicationsThe paper provides many avenues for future research in this emerging area of investigation. The key research questions posed aim to advance the contribution of Big Data to research on IC approaches.Practical implicationsThe paper outlines the socio-economic value of Big Data generated by and about organisational ecosystems. It identifies opportunities for existing companies to renew their value propositions through Big Data, and discusses new tools for managing Big Data to support disclosing IC value drivers and creating new intangible assets.Originality/valueThis paper investigates the effects and implications Big Data offers for IC management, in support of the fourth stage of IC research. Additionally, it provides an original interpretation of IC research through the lens of Big Data.

INTELLECTUAL CAPITAL PRACTICES AND FINANCIAL EFFICIENCY: A MEDIATING ROLE OF BANKS’ PERFORMANCE: EVIDENCE FROM THE BANKING SECTOR OF PAKISTAN

The study attempts to examine the impact of intellectual capital (IC) practices (i.e. human capital, structural capital and relational capital practices) on financial efficiency through mediating the role of bank performance. We collected data for 518 banks’ professionals through questionnaire and use the direct path way and multiple regression to examine the impact of IC practices on mediating variable (bank performance) and mediating variable on dependent variable (financial efficiency). The results reveal that the proposed hypotheses are statistically significant (p<0.01) and that banks’ performance partially mediates the relationship between IC practices and banks’ financial efficiency. This study provides valuable insights on the impact of IC practices on financial efficiency of banks through mediation of bank performance. The tested theoretical relationship reveals that banks which are more involved in IC practices get better results than their competitors.

Investigating the “fate” of Intellectual Capital indicators: a case study

Purpose – Although several frameworks for measuring and reporting Intellectual Capital (IC) have been developed over the past two decades, their actual use in practice is still limited. The purpose of this paper is to answer the call to analyze IC practices from a critical and performative perspective by investigating how and why IC indicators may end up not being used, thus shedding light on the barriers to their use. Design/methodology/approach – The paper presents a single in-depth case study and focusses attention on the fragility of the IC indicators as well on the interactions that occur among subjects while transmitting IC indicators. Findings – The case analysis shows how the different perspectives and expectations that are at stake when subjects engage with IC indicators can play a central role in hindering or enabling their use in practice. Expecting IC indicators to be able to accurately represent and to objectively signal the size and the growth/decline of IC, i.e. to be complete and isomorphic measures, can act as a barrier to their use. The case also shows that scores play a role in hindering the use of the IC indicators; the subjects disputed the scores when they did not confirm their perception of reality, and the lack of completeness and isomorphism of the IC indicators, i.e. their fragility, was the reason put forward to justify the subjects’ refusal to accept the scores and thus, to use these measures. Research limitations/implications – Although the use of a single case study provides in-depth and rich data, it also limits the generalizability of the observations to other companies. Moreover, the findings obtained may be influenced by the specific IC framework and indicators adopted. Originality/value – Differently from most previous IC research, this paper focusses attention on the transmission of indicators and ultimately, on their “fate,” and it contributes to the understanding of how and why IC indicators may be produced but not used, thus hindering the diffusion of IC frameworks in practice.

Intellectual capital, calculability and qualculation

The literature on accounting for intellectual capital (IC) and, in particular, IC reporting suggests a preoccupation with measurement. While foundational for a calculative practice, this may eclipse the socially embedded facets of this accounting technology. The consequences include bringing into question the usefulness of IC reporting. Accordingly, we argue for a reflexive analysis of IC as a material, social phenomenon facilitating organisational change. In this paper we examine and reflect on how IC practices influence individual understanding of organisational change, developing insights into how social relations are identified, communicated and transformed. The overall contribution of the paper is to highlight how calculative practices, such as accounting for IC, are balanced with judgment in understanding and managing IC during periods of organisational change.

The relationship between human capital, value creation and employee reward

Purpose – The purpose of this paper is to examine the relationship between human capital (HC) and value creation and employee reward. HC is an important component of intellectual capital (IC). There is growing interest in how IC can be used to create organizational value. This paper addresses the need for critical analysis of IC practices in action. Based on data gathered from three annual surveys at Australia’s second largest public sector organization, the paper introduces psychological contract (PC) as new HC factors, and develops a method to measure HC in terms of value creation (work activity) and employee reward (pay). The findings have practical implications for managers in using the paper’s HC measurement to achieve strategic alignment (SA) of the workforce. Design/methodology/approach – The research was based on data gathered from three annual surveys (2009-2011) of staff at Australia’s second largest public sector organization. A total of 248 questionnaires were completed. Three independent variables conceptualized HC: first, employee capability (HC1); second, employee satisfaction (HC2); and third, employee commitment (HC3). Two dependent variables were tested: work activity and pay. The data collected in this study was analyzed through the use of bivariate correlation and linear regression using SPSS software. Findings – The paper’s major finding is that HC1 (employee capability) and HC2 (employee satisfaction), had a direct positive relationship with the importance of work activity. The paper’s second finding was that only HC1 has a direct positive relationship with the pay. However, HC3 (employee commitment) had a direct negative relationship with the importance of work activity. Further, HC2 and HC3 had no relationship with pay. The research project organization (RPO) achieved SA with employees’ capability and motivation; as well as employee capability and pay. However, inequities emerge in terms of employee commitment and value creation (work activity) and in the PC factors and pay. Research limitations/implications – While the research findings are limited by them being based on a single RPO, this is offset to some degree by the longitudinal nature of the study and the size of the RPO. It also presents opportunities for further research, particularly in terms of further testing of the new conceptualization of HC in other organizations and industry settings, and investigation of the failed hypotheses: PC and pay; and employee commitment and work activity. Practical implications – While strong PC employees are being asked to do important work, they are not always being paid at the rate of colleagues doing similar work. This will create perceptions of distributive justice, which will make those with strong PC unhappy, thereby decreasing their PC, disrupting the SA of the value creation, and lead to employee turnover. Managers can address this problem by using the HC method outlined in this paper to introduce methods such as merit increases and variable pay. While this is problematic for public sector organizations often constrained by having to fit salary awards, innovative organizations are increasingly considering more flexible pay systems. Originality/value – The paper introduces a new conceptualization of HC, and two proxies for organizational performance: pay and work activity. The paper addresses calls for IC in practice research to make the field more relevant for practitioners. The HC model introduced will allow managers to act on IC measurement by linking HC value with adequate pay, increasing motivation, commitment, and productivity, leading to increased innovation and reduced employee turnover.

A QUALITATIVE APPROACH TO EXPLORE THE ROLE OF INTELLECTUAL CAPITAL PRACTICES (ICP) FOR BANKS’ PERFORMANCES: A Knowledge Base Perspective

This research study has twofold objectives, first to explore in depth knowledge base view of banks’ professionals regarding the adoption of intellectual capital practices (i.e. human capital, structural capital and relational capital) and second to get know professionals subjective opinions about importance of such practices to obtain sustainable performances of banks in a competitive environment. Based on interpretive phenomenological approach (IPA) the study provides multidimensional realistic implications for top management echelons in banking industry and for future academic researchers. The findings of study reveals that intellectual capital practices are deeply addressed by banks’ professionals. Banks are penetrating regarding the human capital (HC), structural capital (SC) and relational capital (RC) practices to build competitiveness through market share and profitability. Learning and education, employee’s experience and expertise and their innovative and creative abilities are very key constructs of human capital. The study explores fore-mentioned abilities provide substantial contribution for banks’ performance in the shape of market share and profitability. The study presents the subjective opinion of twelve participants from a geographical area (Lahore) however more sample size will provide the parsimonious picture about IC awareness and its implementations to link it with banks’ performances.

Forty-two

This article explores the meaning and context of intellectual capital (IC) numbers to help break free from the domination of IC “accountingisation” . Offering a personal and reflective narrative about IC numbers, I first discuss what numbers mean by exploring the way we think about the number 42. This discussion is followed by two empirical sections examining the meaning and context of a common IC measure, employee turnover rates. Measuring any IC element is problematic from an IC accounting perspective because of the unique context in which each organization operates. The comparability of a number from one organization and one period with another is nearly impossible. The article is original because it takes a thought-provoking narrative journey into the use and meaning of applying IC numbers. It is a personal reflection on the implications of considering the meaning of numbers for IC practice, IC education and research, and IC’s future. It is particularly topical in light of the inclusion of IC in the recent Integrated Reporting (&lt;IR&gt;) Guidelines.