Intellectual Capital Research Research Articles

Introduction of new intellectual capital disclosure framework in Indonesia

Intellectual capital has gained increasing attention, and its importance has been acknowledged widely including in Indonesia. Despite the importance of intellectual capital, several researchers emphasise the limitation of such studies in non-developed countries. Furthermore, the majority of prior studies on intellectual capital disclosures employ content analysis despite its weaknesses. Therefore, this research constructed an Indonesian intellectual capital disclosure framework, a framework based on data of Indonesia that may overcome content analysis weaknesses. Furthermore, this research also offers a new joint theoretical framework, intellectual capital theoretical framework, which may be useful for future intellectual capital disclosure research. This research contributes to limited intellectual capital disclosure research in Indonesia and provides valuable insights into the practice in Indonesia. This research also contributes to the development and introduction of intellectual capital theoretical framework and Indonesian intellectual capital disclosure framework.

Integrated reporting: A structured literature review

This paper reviews the field of integrated reporting (<IR>) to develop insights into how <IR> research is developing, offer a critique of the research to date, and outline future research opportunities. We find that most published <IR> research presents normative arguments for <IR> and there is little research examining <IR> practice. Thus, we call for more research that critiques <IR>’s rhetoric and practice. To frame future research we refer to parallels from intellectual capital research that identifies four distinct research stages to outline how <IR> research might emerge. Thus, this paper offers an insightful critique into an emerging accounting practice.

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.

Managing intellectual capital through a collective intelligence approach

Purpose– The purpose of this paper is to provide a new framework for managing intellectual capital (IC) inside a university considering the collective intelligence perspective.Design/methodology/approach– The research method uses the fourth stage of IC research and adopts the collective intelligence approach. The underlying assumption behind the framework is to consider the university as a collective intelligence system in which the tangible and intellectual assets are coordinated towards the achievement of strategic goals.Findings– The conceptual framework for IC management harnesses the power of IC, collectively created by the engagement of multiple stakeholders inside the university network. The main components are the final goal of a university (what); the collective human capital to achieve the goal (who); the processes activated inside the university (how); and finally the motivations behind the achievement of the goal (why).Research limitations/implications– The research is exploratory and the framework offers opportunities for refinement. Future research is needed to verify the application of the framework to other organisations in the public sector intended as collective intelligence systems. A new perspective for managing IC in universities adopting the collective intelligence approach is developed. Contribution to the fourth stage (ecosystem) of IC research is highlighted, expanding the concept of IC value creation beyond the university into wider society.Practical implications– The framework can be used to manage IC strategically in all the systems interpreted as collective intelligence systems in which the role of IC creation from multiple actors is relevant. This makes possible the understanding of how IC helps create value for the society and the region in which the university operates.Originality/value– The originality of the paper is in bringing together issues usually dealt within the literature in separate domains, such as IC management and collective intelligence perspective. The concept of collective intelligence remains an unexplored field in relation to IC management in the public sector. The collective intelligence approach provides a novel contribution to managing IC and is intended to inspire future research.

A critical reflection on the future of intellectual capital: from reporting to disclosure

Purpose – The purpose of this paper is to offer a personal critical reflection on the future of intellectual capital (IC) based on my experience as an IC researcher, author, editor, teacher and practitioner. Design/methodology/approach – Offers a first-hand reflection on the future of IC, using evidence collected from IC in the field and the author’s personal reflections. Findings – I argue that the authors need to abandon reporting and instead concentrate on how an organisation discloses what “was previously secret or unknown”, so that all stakeholders understand how an organisation takes into consideration ethical, social and environmental impacts in keeping with an eco-systems approach to IC. Research limitations/implications – While much of the empirical evidence presented in this paper is freely available to all scholars, the interpretation and findings is subjective. Other researchers, given the same opportunity and evidence, may not necessarily make the same conclusions. Social implications – We are now on the cusp of the fourth stage of IC research (Dumay, 2013), whereby IC expands its boundaries into the wider eco-system, to “go beyond IC reporting” (Edvinsson, 2013, p. 163). Originality/value – Offers a critical review of the impact of IC reporting which is relevant to consider because of the newfound resurging interest in IC, based on the current push for integrated reporting ( &lt; IR &gt; ), which arguably contains IC information targeted at investors.

Exploring intellectual capital management in SMEs: an in-depth Italian case study

Purpose– The purpose of this paper is to analyse intellectual capital (IC) in SMEs. In particular two research questions are posed: how SMEs acquire or develop knowledge and intangible resources; and how they manage and exploit IC.Design/methodology/approach– An in-depth case study of an Italian SME operating in the automobile industry is carried out in order to answer the two research questions.Findings– The case study evidences the impossibility to sharply divide all of the knowledge-related elements of a firm into the three generally accepted categories of human, organisational (structural) and relational capital. The analysis of IC as a set of stock of resources is important but really partial due to the fact that IC and knowledge continuously change. In this light, the focus on activities and processes help in understating how the firm manages IC. In the studied SME, formal and informal knowledge coexist but in different areas of the firm. Again, the relationships with external stakeholders, suppliers and clients especially, are the source for improving IC. The case study also supports the important role that dialogue and familiarity play in knowledge management. However the focus of management is not knowledgeper se, but the solution to problems the firm must deal with, IC and knowledge being just one of the issues to be considered in order to solve problems.Research limitations/implications– The paper is useful since it addresses the management of IC in SMEs which is a topic under-researched with respect to the economic importance of SMEs. The conclusions of the work, emerging from an individual case study analysis, cannot be generalised. However, they offer support for other studies findings and highlight some specificities of the way SMEs manage IC.Practical implications– The paper explores the characteristics of IC management in SME in order to contribute towards the differentiation of the view of IC in relation to the “size” of the firm. Approaches originally developed for larger firms fail to consider SMEs characteristics, which indeed are not smaller large firms; therefore, it is in general impossible to think of SME management systems as simpler or smaller than those adopted by large firms. The key point is in fact that SMEs (at least the one here analysed) have management systems which are ontologically different.Originality/value– Besides the relevant role of SMEs in economy, very few papers have been published on the way IC is developed and managed in SMEs. A gap therefore exists between the economic importance of SME and the attention IC research has given to them, which calls for more research on this area. The paper is a step forward on the way of reducing that gap, since it provides a case study on knowledge and IC management within an Italian SME. Finally, the analysis reinforces similar results of other studies adopting a dynamic perspective for the analysis of IC, which found IC management in SMEs to be more based on informal systems.

The relational capital of the IT department

Purpose – The purpose of this paper is to shed light on how the relational capital of the information technology (IT) department creates value in organizations. In addition, the paper presents a multi-dimensional scale to measure and manage relational capital in the IT department. Design/methodology/approach – In the first, explorative phase of the study, interviews and focus groups were conducted in order to develop a new measurement scale, which was subsequently tested through a survey questionnaire (212 respondents). Findings – This research suggests that the relational capital of the IT department is a very important resource for the creation of strategic value. The statistical analysis conducted for this study confirmed the validity and reliability of the novel scale developed to measure this resource. Finally, thanks to factor analysis, five dimensions for the scale were identified. Research limitations/implications – Data were collected in northern Italy only. Further studies are advisable to confirm the validity of the constructs and scale. Practical implications – The questionnaire presented in this study can be used to monitor the effectiveness of the interactions between the IT department and the other key actors involved in IT-enabled innovation. The adoption of this scale and its possible adaptation to specific, evolving business contexts may enhance the practitioner’s understanding of the role of relational capital in the value creation process. Originality/value – The paper contributes to the “third stage” of intellectual capital research by concentrating on an intra-organizational level of analysis, which has been overlooked in the literature to date.

Smart city intellectual capital: an emerging view of territorial systems innovation management

Purpose– The purpose of this paper is to explore whether and how the intellectual capital (IC) approach and concepts could be fruitfully adapted to study the smart city phenomenon from a managerial point of view.Design/methodology/approach– This study is based on a long-term, in-depth ethnographic exploration of the vast global community, which is created around the smart city movement.Findings– The analysis suggests that, in order to effectively analyse a smart city context through the IC lens, the traditional IC framework needs to be extended for: expected outcomes, which should also include sustainability, resilience and quality of life; categories of key resources, which should also include institutional capital and environmental capital; units of analysis, which should also include territorial systems, such as transportation or waste; and key managerial challenges implied. As a final result, a smart city intellectual capital (SC-IC) framework is proposed.Research limitations/implications– Most of the cases analysed in this study are European; further studies are advisable to better investigate non-European smart city contexts.Practical implications– The paper suggests that the knowledge management, project portfolio management and network management approaches are crucial to better support managerial practices in smart city organizations.Originality/value– The SC-IC framework allows for a clear definition of the smart city organization, as a new knowledge-based, project-oriented, network-shaped type of organization. Therefore, the SC-IC framework provides smart city research with a consistent rooting in management studies. Further, this paper contributes to the fourth stage of IC research.

Is the literature on content analysis of intellectual capital reporting heading towards a dead end?

Purpose – The purpose of this paper is to respond to the call by Dumay and Cai (2014) for new ideas to enhance intellectual capital (IC) research. One possibility is to draw conclusions on comparability across the results of prior studies. This study investigates whether the results of prior IC content analyses are comparable despite differences in their IC research frameworks. Design/methodology/approach – A content analysis of 428 German management reports is conducted, capturing the IC reporting scores for individual IC items to investigate the role of certain widely used IC items. The relationships of IC scores for different combinations of widely used IC items are further examined in a correlation analysis to indicate comparability of prior results. Findings – The findings show that widely used IC items capture the majority of IC reporting and that the IC scores for different combinations of these IC items are highly correlated. These findings indicate that the results of prior IC content analyses are comparable as long as most of the widely used IC items are included in prior IC research frameworks. Research limitations/implications – The study contributes to IC reporting research as it shows that conclusions can be drawn across prior studies in meta-analyses because the results of prior studies are comparable in rankings and key findings. Originality/value – Although content analyses of IC reporting have been previously criticised, this study seminally questions the comparability of the results of prior studies due to differences in the IC research frameworks.

The relationship between intellectual capital, firms’ market value and financial performance

Purpose – The purpose of this paper is to explore and compare the extent of intellectual capital (IC) and its four components among ASEAN countries, and examine the relationship between firms’ IC, market value, and financial performance. Design/methodology/approach – The study uses the data of 213 technology firms listed on five ASEAN stock exchanges. Pulic’s Value Added Intellectual Coefficient model is modified by adding an extra component, namely, relational capital efficiency (RCE). The Kruskal-Wallis one-way ANOVA and multiple regression analysis have been utilized to test the hypotheses. Findings – The results reveal that there is no significant difference in Modified Value Added Intellectual Coefficient (MVAIC) across five ASEAN countries; however, firms in each country tend to place a different degree of emphasis on components of MVAIC to generate corporate value. The results further indicate a positive relationship between IC and market value, confirming that firms with greater IC tend to have greater market value. Likewise, a positive relationship between IC and financial performance measures is confirmed. Specifically, IC is found to be positively associated with margin ratio and return on assets. Capital employed efficiency and human capital efficiency are found to be the most influential value drivers for both market value and financial performance while structural capital efficiency and relational capital efficiency possess less importance. Originality/value – This study contributes to the IC literature by expanding our knowledge of IC in the emerging economies, and providing a national comparative IC research when such research is limited.

An empirical investigation of the impact of management accounting on structural capital and business performance

Purpose – The purpose of this paper is to develop and test a series of conceptual models that investigates the impact of management accounting (MA) (systems and information) on firms’ structural capital and business performance. It also replicates previous research in this area which focused on the interplay between the three primary elements of intellectual capital (IC) (i.e. human capital, structural capital and relational capital) and business performance. Design/methodology/approach – A survey instrument was used to collect the data required to conduct the study. All respondents who participated occupied the role of chief financial officer or equivalent and were employed by firms competing within the indigenous Irish information and communications technology sector. Consistent with prior quantitative IC-based research, a form of structural equation modelling called partial least squares was used to test the data collected. Findings – The findings reject the suggestion that MA is most appropriately situated as an element of firms’ structural capital. The findings support a plausible and statistically significant relationship between advanced MA systems and business performance. The findings also generally support previous research on the relationship between the three elements of IC and business performance. Originality/value – Although much has been written about the potential role for MA in the IC area, little empirical evidence has yet emerged. This exploratory research begins to address this deficiency by developing and testing a series of MA-related constructs within the IC research domain.

Where there is a will there is a way

Purpose – The purpose of this paper is to examine whether strategic intent influences developing intellectual capital (IC) and if IC affects performance measured in terms of product and service diversification within small and medium enterprises over time. Design/methodology/approach – This study discusses if and how structural equation models can be located within the third stage of IC research, and subsequently presents an analysis developed using 1,392 questionnaire responses through a temporal lens. Findings – Empirical results show how relational, human and structural capital strongly connects to support a firm’s performance measured in terms of product and service diversification. Additionally, IC and strategic intent influence each other creating a constraint effect on one side and an ambition effect on the other. Interestingly, the constraint effect is much higher than the ambition effect, and this falls in line with a contingency approach to strategic intent. Practical implications – Several practical implications are developed. First, results show that high regulation where firms can offer mandatory product/services can limit IC development. Therefore the findings contribute to the dialogue between policy makers, managers and businesses. Second, business schools should consider how strategic intent contributes to developing IC in order to design future curricula for accounting and management studies. Third, firms that operate in similar contexts should pay attention to managerial myopia due to low competition where a significant part of firms’ revenues is from mandatory product/services. Originality/value – This paper contributes to the existing literature by investigating how IC affects strategic intent and how strategic intent fosters IC development. Additionally, findings build on existing theory, helping to understand how IC affects performance measured in terms of portfolio diversification.

IC and public sector: a structured literature review

Purpose – The purpose of this paper is to present a structured literature review of the public sector intellectual capital (IC) literature. It is, in part, motivated by a recent review of the IC literature by Guthrie et al. (2012, p. 74), who found that the public sector is one of the least addressed areas of IC research. Design/methodology/approach – This paper presents a structured literature review of public sector IC articles that is as up to date as possible. The authors use and update the dataset from Guthrie et al. (2012) to include another five plus years of data, including seven articles appearing in this special issue. Findings – The public sector IC has a primary research focus on central government and central government agencies, education (especially universities), Europe (especially Italy and Spain) and empirical research using case studies mainly investigating management control and strategy. It appears public sector IC researchers are firmly entrenched in performative third-stage research, investigating “how” IC works in organisations rather than offering normative solutions. Research limitations/implications – Three areas offered as a way of forwarding public sector IC research. First, there is a need to expand public sector IC research from beyond the confines of education (university) research. There is also an opportunity for a study to synthesise the findings. Second, there is also a need for more longitudinal research in public sector IC because IC is not an event, but a journey. Third, there is an opportunity for researchers to undertake empirical research with organisations to develop and test IC frameworks and models in specific public sector contexts. Practical implications – The authors call for researchers to consider helping public sector practitioners implement IC frameworks and models through interventionist research. In keeping with the performative third-stage IC research agenda, interventionist research makes it possible for academic researchers to act as a catalyst for implementing IC frameworks and models in practice. Originality/value – This paper is a must read for IC researchers wanting to embark on public sector research. The paper outlines how public sector IC research has developed, offers critique and outlines future opportunities for research that has potential impact, rather than concentrating on already well-researched contexts.

New frontiers in the use of intellectual capital in the public sector

Purpose – The purpose of this paper is to present an overview of the articles presented in this special issue. The Special Issue is inspired by our recent review of the intellectual capital (IC) literature in Guthrie et al. (2012, p. 74), in which the authors found that the public sector is one of the least addressed areas of IC research. Design/methodology/approach – The paper is based on a literature and published document review, experiential reflections and argument. Findings – The paper reveals that interest in public sector and IC is alive and well and the major difference between public sector and mainstream IC research is a complete lack of normative research. The papers in this Journal of Intellectual Capital (JIC) Special Issue continue that tradition. Research limitations/implications – The authors call on public sector IC researchers to continue the third stage and fourth stage IC research tradition encouraging them to explore emerging issues alongside the changes in the social, political and economic realities impacting public sector IC in the future. Doing so will ensure that public sector IC research is timely, relevant, impactful and contributes to future practice, research, policy and above all, benefits the citizens who need and consume public services. Originality/value – The paper presents a précise of current public sector research and encourages public sector researchers to continue developing research into how IC works.

An intellectual capital maturity model (ICMM) to improve strategic management in European universities

Purpose – The public sector is one of the least addressed areas of intellectual capital (IC) research. Universities are an interesting area of investigation because they are considered critical players in the knowledge-based society. The purpose of this paper is to develop a more general, flexible and comprehensive “IC Maturity Model” for Universities (ICMM), a framework for defining and implementing IC measurement and management approaches, as part of the whole strategic management of universities. Thus, the ICMM proposes a staged framework to initiate a step-by-step change within a university based upon its current level of IC management maturity. The different steps of maturity might be an answer to cope with the huge diversity of European universities, some of which have strong managerial orientation, while others follow collegial forms of governance. Design/methodology/approach – The research approach is based on what has been called the “third stage” of IC research (Dumay and Garanina, 2013), focused on the practices of IC approaches rather than on its theoretical conceptualisation. The ICMM has been developed under the “Quality Assurance in Higher Education through Habilitation and Auditing” project framework, initiated by the Executive Agency for Higher Education and Research Funding of Romania (EUFISCDI). Three Mutual Learning Workshops (MLWs) were organised as a mean to bring together 15 international experts and practitioners to share their views and experience on IC reporting and setting up task forces. Findings – An ICMM, which is a flexible model of implementing IC approaches within public universities, is developed. The ICMM provides a theoretical continuum along which the process of maturity can be developed incrementally from one level to the next, moving from IC data collection, awareness of IC, adjustment of IC specific indicators, measurement of IC, reporting of IC, interpretation and decision making, strategy and planning. Research limitations/implications – Future research needs to conduct empirical studies in universities to generalise the effectiveness of the ICMM model and guidelines for implementation. Practical implications – The ICMM provides a staged framework to initiate a step-by-step change within a university based upon its current level of IC management maturity and its IC value creation dynamics. It allows universities to follow different paths, not necessarily a linear sequence. Originality/value – Although several methods for IC measurement and management exist, most of these cannot accommodate the trade-off between the comparability aims and the efforts to capture the institution’s uniqueness when designing an IC model.

Unlocking intellectual capital

Purpose– The intellectual capital (IC) literature argues that introducing the IC concept into a company focusing on measuring can be detrimental and lead to IC “accountingisation”. Using Chaminade and Roberts’ (2003, p. 747) concept of IC accounting “lock-in”, the paper asks “is it possible for an organisation initially to implement and “lock-in” IC accounting practices and subsequently “un-lock” IC through a more strategic managerial approach?” The authors also investigate if and how, after IC has been “un-locked”, can a new IC “locking-in” process occur? The paper aims to discuss these issues.Design/methodology/approach– The authors present an interpretive case study of implementing a system for measuring and reporting IC in an Italian public sector utility company. The analysis uses Actor-Network Theory (ANT) to analyse data and discuss findings which is an appropriate theory for case studies using an interpretive approach.Findings– The findings are contrary to Chaminade and Roberts (2003, p. 733) because the authors challenge the notion “that a dominant accounting perspective can lead to an excessive focus on measurement issues and little attention to management processes”. The evidence from the case study shows how at times a dominant focus on accounting for IC is necessary, especially to allow newcomers to take stock, and make sense, of IC. The analogy is much like comparing accounting vs managing IC to the concept of the chicken and the egg: what comes first?Research limitations/implications– Because the study looks at IC over time, it allows the authors to develop different insights into IC “because IC is not an event, but a journey” (Dumayet al., 2015). Thus, the critique of Chaminade and Roberts (2003) and other IC research based on a short time period is that it does not allow researchers to fully follow the IC’s impact on an organisation. Additionally, the authors also highlight the role academic researchers can play in understanding how IC works inside organisations, especially when the authors examine how deeply (or not) a researcher intervenes in implementing solutions (see Dumay, 2010).Practical implications– The research exemplifies how IC can make a difference for public sector organisations because there is a need for studies such as the authors which exemplify how to introduce the IC concept into public sector organisations and at what point should the IC concept “enter” the organisation (see also Secundoet al., 2015). Doing so re-emphasises that IC is not an ostensive concept. Rather, “IC is part of a configuration of knowledge management and actively mobilised to condition effects” (Mouritsen, 2006) and to make a difference (Tull and Dumay, 2007).Originality/value– This paper is a must read for academics and practitioners seeking to understand how to introduce the IC concept into an organisation.

The construct of absorptive capacity in knowledge management and intellectual capital research: content and text analyses

Purpose– The purpose of this paper is to provide a holistic picture of how and to what extent Cohen and Levinthal’s (1990) seminal article on absorptive capacity was used in knowledge management (KM) and intellectual capital (IC) research from 1990 to 2013.Design/methodology/approach– In this paper, 186 articles extracted from eight KM and IC journals were reviewed by conducting both content and text analyses. To facilitate research comparison, content analysis followed the method used by Robertset al.(2012) and thus was based on categories, conceptualizations, levels of analysis and, additionally, temporal evolution of absorptive capacity from 1990 to 2013 was looked at. Text analysis was performed to identify major research themes developing the absorptive capacity construct.Findings– Finding showed that absorptive capacity was largely underdeveloped in the KM and IC fields. KM, knowledge transfer and innovation were the top three research areas investigating absorptive capacity in the KM and IC fields.Research limitations/implications– This study had limitations related to time frame, covering a period from April 1990 to November 2013, and accessibility of articles due to specific restrictions in journal subscriptions.Originality/value– This paper is a first attempt to review absorptive capacity in KM and IC research. It represented a primary reference for those interested to research absorptive capacity in the KM and IC fields.

Estimating a measure of intellectual capital value to test its determinants

Purpose – The purpose of this paper is to identify a measure of intellectual capital (IC) value which offers new research opportunities for empirical investigations and to examine the determinants of IC value. Design/methodology/approach – In total, 4,488 firm years of German companies are investigated to compare three measures of IC value: market-to-book, Tobin’s q, and long-run value-to-book (LRVTB). Findings – LRVTB is observed to be the IC value measure with the highest explanatory value. This measure provides an approach to empirically test previously untested hypotheses on IC value. The results on testing determinants of IC value indicate that IC value is positively related to leverage and motivational payments to employees and negatively associated with company size. In contrast, recognised intangible assets, research and development (R &amp; D), company age and concentrated ownership show no significant effects. Research limitations/implications – The findings on IC value measures contribute to IC research as they offer a way to estimate IC value for testing IC-related hypotheses. The findings on IC determinants have implications for IC management as the relevant determinants can be considered for IC value creation. Originality/value – This paper responds to the challenge posed by previous IC research to develop more creative quantitative approaches to estimate IC value (Marr et al., 2003; Mouritsen, 2006) in order to test IC-related hypotheses by innovatively applying a measure from mergers and acquisitions research to IC.

The Journey of IC Research: Reflections from the Past two Decades

This paper attempts to reveal the dynamics of intellectual capital research and the different dimensions that has been explored in this area during the past two decades. The Journay of intellectual capital (IC) research has been segregated into three distinct stages covering a wide ragne of the concept, relevance, measurement, management and reporting based on the extant literature. With the birth of each research stage unfolding its observations, intellectual capital has begun to celebrate its share of increased relevance. The observed three stages of IC research has paved the way for fourth stage offering more dimensions of IC that need to be explored.

Reflections on interdisciplinary accounting research: the state of the art of intellectual capital

Purpose – The purpose of this paper is to offer reflections and critique not only on the current state of the art for intellectual capital research (ICR) from an interdisciplinary accounting research (IAR) perspective, but also its future directions. Design/methodology/approach – This paper offers a critical reflection based on the author's observations as an IC researcher, reviewer and editor. The author also supports the arguments with some evidence from the research about IC research. Findings – The author argues that most ICR is falling short of achieving “the most advanced level of knowledge and technology” of the art because it inherits flaws from prior research, thus threatening its legitimacy and impact. Research limitations/implications – The author argues that researchers need to go back to the methodological drawing board when designing IAR so future research can achieve its full potential. To do so researchers also need their research to be transformational to engender change, and to be transdisciplinary, which encompasses research beyond the current boundaries of accounting and management. Originality/value – The author identifies and introduces three research shortcuts that prevent ICR projects from being state of the art being copycat, Furphy and technophobic research which provide insights into why not all ICR research is not “state of the art”.