Intellectual Capital Theory Research Articles

Stakeholders' Involvement in KMS implementation for Thai Ceramic SMEs: A Conceptual Framework

Recently, over 80 percent of ceramic SMEs in Lampang, known as the biggest source of ceramic production in Thailand have been closed down rapidly due to several reasons such as the difficulties to find funds for sustainment and facing intensive competition in the global market. To overcome this situation, we propose a Knowledge Management System (KMS) framework based on Intellectual Capital (IC) theory. This framework is based on the identification of the various stakeholders of the enterprise and their roles in creating the knowledge. To improve performance of SMEs, we propose to develop four perspectives: Business Plan, Business Process Reengineering (BPR), Enterprise Resource Planning (ERP), and New Product Development (NPD) using the Joint Application Design (JAD).

Is intellectual capital‐based strategy market‐based or resource‐based?

PurposeThe purpose of this paper is to construct a strategy model based on Intellectual Capital (IC) theory and to demonstrate that it is not purely resource‐based (RBV), but includes many elements that are rooted in the market based view (MBV). The authors' analysis indicates that only strategies which lead to both tangible and intangible revenues are sustainable in a knowledge‐based economy.Design/methodology/approachThe paper takes the form of an extensive review of IC and strategy literature, and in‐depth comparative analysis of IC concept and the strategy management frameworks, particularly Porter's framework.FindingsIt is found that the IC‐based view (ICBV) is much closer to the MBV than what one would expect and the ICBV is more appropriate for a knowledge‐based economy than both the MBV and the RBV in general.Originality/valueIt is widely assumed that IC theory is strongly related to resource‐based strategy. The authors question this simple view and maintain that the IC‐based view relates to both MBV and RBV.

Does intellectual capital matter? Assessing the profitability and marketability of IC design companies

Under a highly competitive market and a dynamic industrial environment, how to evaluate and enhance an integrated circuit (IC) design company’s good performance is important. This paper develops a two-stage data envelopment analysis (DEA) combined intellectual capital theory through financial and non-financial data to evaluate a performance process on the IC design company. It adopts a new slacks-based measure (SBM) to obtain a more accurate performance estimation and rank between companies. This paper further uses the Simar and Wilson procedure with a truncated regression to explore the impact of intellectual capital variables on performance and competitive advantage. From the study we suggest to the company in how to enhance precisely its performance to create company value and success.

Theoretical backgrounds of investigating of intellectual and human capital

The article considers theoretical aspects of intellectual capital of enterprise. The distinction between intellectual and human capital is established. The coincidence of an object of research of intellectual capital theory and of enterprise innovative development theory is shown. The concept of «intellectual potential of enterprise» is entered and its structure is explained.

Linking National Contexts with Intellectual Capital: A Comparison between Spain and Morocco

The 'national environment', which includes belief and value systems, shapes the way individuals, groups and organisations perceive the world around them and determines how they react to ongoing changes. This paper analyses the role of different context's effects on intellectual capital by means of an empirical investigation of 112 Small to Medium sized Enterprises (SMEs) in the Spanish and Moroccan telecommunication industries. Within the investigation, repeated ANOVA were used, which were validated by factor analysis. Results support that Spanish SMEs are more positively associated with higher levels of human, structural and relational capital. The meaningful differences are clearly found in the 'structural capital'. Our findings open avenues for further research to explore how governments can facilitate learning and unlearning environments in SME communities. These findings have important implications for general intellectual capital theories, as they suggest that there is no guarantee that intellectual capital theories developed within the cultural context of one particular country can be applied in another with good effect. National contexts provide the environment for learning, which in turn may have the effect of adequately improving intellectual capital.

Model of Organization's Intellectual Capital Measurement

Intellectual capital theory has been active for two decades already. Despite that many unanswered questions in theory and business practice are still left. Issues of intellectual capital essence, structure, measurement and its impact on business performance are still being researched. Managers constantly look for the new solutions of recognizing, measuring and managing intellectual capital in order to maximise the value of knowledge, develop new forms of competitiveness and increase organization’s potential. Intellectual capital measurement has been identified as one of the most important issues for today’s business success. Plenty of intellectual capital measurement methods can be found in business literature. New methods appear within the intellectual capital theory continually. Some of them are implemented in business practice, others remain as theoretical suggestions important for further subject research. But despite that, a common view on intellectual capital measurement still does not exist. Results of the comparative analysis of intellectual capital measurement methods are discussed and the main bottlenecks of intellectual capital measurement methodology are revealed in this paper. Based on these results the model of organization’s intellectual capital measurement is proposed here. Intellectual capital measurement is specified as a multi-stage process of information accumulation and interpretation within the model proposed. Six stages of intellectual capital measurement process are formalized. The process starts with the situation analysis in which measurement problem reveals and the particular measurement target development. It continues with measurement possibilities assessment, measurement method selection and organization of its implementation. The process results in the decision making stage. Two alternative scenarios of the rational intellectual capital measurement process are briefly discussed in this paper and the particular measurement techniques are proposed for each scenario. The model proposed summarizes knowledge of intellectual capital measurement. It intends to help managers understand intellectual capital measurement process as a whole and implement intellectual capital measurement solutions purposefully and in series.

Competitive flows of intellectual capital in value creating networks

PurposeThe purpose of the paper is to develop intellectual capital theory to include competitive aspects that influence value creation of the network.Design/methodology/approachThe empirical part of the paper is based on a qualitative case study of a network of collaborating competitors within the natural products industry in Finland. A total of 29 interviews are conducted involving 11 informants. The empirical material is examined through Verna Allee's value network analysis.FindingsBusiness relationships include both collaborative and competitive dimensions. By adding a competitive dimension to Allee's value network, a more exhaustive picture of the network emerges. Hence, the relationships not only consist of collaborative tangible and intangible flows between the actors of the network, but also of competitive flows that per definition may only be intangible.Research limitations/implicationsThe paper is based on a single case study. The paper includes collaborating competitors, but opens up interesting avenues for further research as competitive elements surely are present also in other types of business relationships.Practical implicationsKnowledge received from partners is not always trustworthy. Still, managers gain more from getting access to knowledge they do not know if it can be trusted, than to be excluded from the collaboration.Originality/valueThis paper brings forward the notion of competitive elements in collaborative relationships. IC research has tended to mostly focus on the positive aspects of the knowledge economy, but has much to gain by realising that there are also negative aspects that affect the creation and distribution of value in a network.

Governo eletrônico e capital intelectual nas organizações públicas

Este artigo mostra a variação de capital intelectual em organizações públicas envolvidas em empreendimentos government-to-government (G2G). Para tanto, um frame heurístico foi desenvolvido a fim de avaliar o impacto de projetos G2G nos componentes do capital intelectual de agências públicas, isto é, em seus capitais humano, organizacional, de relacionamento e de inovação. Aplicando-se esse frame heurístico a 30 empreendimentos G2G no Brasil, ligando o Banco Central com os tribunais de justiça, detectou-se um impacto positivo no capital intelectual das organizações envolvidas nesses empreendimentos. Além disso, verificou-se que tais empreendimentos G2G influenciaram os componentes do capital intelectual de forma homogênea. A partir daí, o frame foi validado por meio de uma elevada e positiva correlação entre a variação do capital intelectual nas organizações públicas e a percepção de valor dos funcionários envolvidos nesses mesmos empreendimentos. Finalmente, adicionalmente às limitações da pesquisa, algumas conclusões são apresentadas a gestores públicos, practitioners e acadêmicos, para que seja entendido o potencial de uso da teoria do capital intelectual para avaliação de iniciativas de governo eletrônico

INTELLECTUAL CAPITAL AUDIT: CONCEPTION, GOALS AND REAL POSSIBILITIES

The main objectives of this paper are to research the background of the formation of intellectual capital audit conception, to define its meaning and to assess the possibilities as well as expedience of its application within the intellectual capital theory and the internal and external audit practice of organization. Common points between the targets of the intellectual capital measurement and the traditional internal and external audit are analyzed in this paper. Analysis of scientific literature and methods of analogy and generalization are used in this research. The main findings of research are based on the systematic scientific literature review and the experience of business practice. In the first part of research the background of the formation of intellectual capital audit conception is analyzed, the main theories influencing it are determined, common points between these theories are analyzed and predominant meaning of intellectual capital audit conception is explained. Intellectual capital audit techniques as well as intellectual capital measurement methods with the “audit” concept are analyzed in the second part of this paper. Intellectual capital audit solutions within business practice and the audit of public intellectual capital reports are analyzed here as well. At the end of this paper the internal and external audit alternatives of intellectual capital are analyzed and their development perspectives are projected.

The intellectual capital theory and its practice in China

The core of Intellectual Capital (IC) emphasises the important role played in value creation and value exaction by human resource, especially those who have high-tech knowledge and creative ability. It could be traced back to the labour theory of value from Marxism. If Chinese enterprises can use this theory and its business model in practice, that would be a great help in increasing their innovation ability, as well as protecting themselves from keen competition.

Strategic Intellectual Capital Development: A Defining Paradigm for HRD?

The performance paradigm of human resource development (HRD) practice has served the field well, particularly in enhancing the relevance and impact of HRD interventions. However, in this article, it is argued that the time has come for a new defining paradigm to advance the field of HRD to a higher level of organizational impact. This article proposes that strategic intellectual capital development (SICD) should be that new paradigm. The argument for SICD is built by merging two streams of research. First, the development of human capital theory is traced through to its expanded conceptualization of intellectual capital theory. Second, the argument for a strategic approach is built off the strategic human resource management literature. The SICD perspective is offered as a robust and broad conceptualization that is essential for HRD to provide organizations the intellectual horsepower to achieve their strategic objectives.

The middle‐range theory of nursing intellectual capital

This paper is a report of the development of the middle-range theory of nursing intellectual capital. Rising healthcare costs and advances in technology have contributed to the need for better understanding of the influence of nurses' knowledge, skills and experience on patient and organizational outcomes. The middle-range nursing intellectual capital theory was developed using the strategies of concept and theory derivation. The principles of research synthesis were used to provide empirical support for the propositions of the theory. The middle-range nursing intellectual capital theory was derived from intellectual capital theory to make it relevant and applicable to a specific aspect of nursing, continuing professional development. It proposes that the nursing knowledge available in healthcare organizations is influenced by variables within the work environment, and influences patient and organizational outcomes. The middle-range nursing intellectual capital theory should be tested in different healthcare systems and in different settings and countries to determine its effectiveness in guiding research.

The impact of government-to-government endeavors on the intellectual capital of public organizations

Abstract This paper draws on sources from two bodies of knowledge: eGovernment and the strategic role of intangible assets in public agencies. It was elaborated in order to measure the variation of the intellectual capital in public organizations involved in government-to-government (G2G) endeavors. In order to achieve this, a heuristic frame was developed to evaluate the impact of G2G endeavors on the components of the intellectual capital of a public agency, namely its human capital, organizational capital, external capital, and innovation capital. Applying this heuristic frame to a G2G endeavor in Brazil linking the Brazilian Central Bank and the Justice Department, a positive impact on the intellectual capital of the Courts of Justice associated with it was detected. Moreover, it was concluded that this G2G undertaking influenced all the components of the intellectual capital of the Courts of Justice alike. Thereafter, the model was validated through a positive and strong statistical correlation between the intellectual capital variation in the Courts of Justice and the value perception of the employees both accrued from the G2G undertaking. Finally, in addition to the research limitations, some concluding remarks are set forth for public managers, practitioners, and academics to help them grasp the potential of using the intellectual capital theory to assess eGovernment initiatives.

East is East, and West is West, and (n)ever its intellectual capital shall meet

Purpose – The purpose of the paper is to start a dialogue about the differences between Western and Eastern cultures in the way they conceptualize knowledge, and to discuss the implications of these differences for global intellectual capital (IC) theory and practice.

Evaluating the scope of IC in firms' value

PurposeThe paper seeks to discuss empirically and contrast the hypothesis of the Theory of Intellectual Capital, which maintains that the difference between the market value of a firm and its book value can be explained exclusively in terms of internal, intangible assets that are peculiar to the firm.Design/methodology/approachThe paper takes the form of a conceptual discussion, graphical analysis, basic descriptive statistics and basic correlational statistics.FindingsNot all overvaluation of corporate assets can be explained by intangible assets of an internal nature. A significant portion can be explained by external factors, unrelated to the management of the firm, such as the general economic cycle or the sector of economic activity in which the firm is active. Hence, any economic importance that intellectual capital might hold for business management is bounded.Research limitations/implicationsThe research is limited to the upper echelons of the largest US firms according to their ranking and the database of the Fortune 500 magazine. Subsequent phases in the research will attempt to observe other populations of firms.Practical implicationsThe purpose of the new accountancy of the firm in the information and knowledge society must not be to balance financial positions with the market valuation of the firm. There are external factors that are beyond management's control. Prudent accounting practices preserve their value. Corporate leadership must focus its action on the internal assets that are open to management, on those that are a source of value creation.Originality/valueThis article reviews, discusses and empirically contrasts a fundamental hypothesis of the Theory of Intellectual Capital and points to a more reasonable path through which to establish the relation between intangible assets and the difference between the market value and the book value of a firm.

Reporting intellectual capital flow in technology‐based companies

PurposeThe paper seeks to explore the development of an intellectual capital flow statement based on a framework that harnesses contemporary research on intellectual capital.Design/methodology/approachCase studies of wireless technology companies based in Canada are adopted to examine the interrelationship between intellectual capital components with a resource‐based view as well as deficiencies in their current financial reporting with respect to intellectual capital. An intellectual capital flow statement is proposed in order to capture the necessary characteristics.FindingsThis study confirms the inter‐relationship between components of intellectual capital and business growth performance among the selected cases of wireless technology companies. It suggests an “add‐on” disclosure of intellectual capital flow that would enhance the usefulness and predictability of performance.Research limitations/implicationsThis study is based on case studies of six wireless technology companies and may not be generalisable to other technology‐based companies.Practical implicationsThe paper suggests a disclosure method for intellectual capital that mitigates problems with information asymmetry in technology‐based companies while maintaining harmony with current financial reporting practice.Originality/valueThis paper integrates prior studies and concepts in intellectual capital, technology management and financial accounting theory, aiming to develop an integrated framework for the disclosure of intellectual capital.

The measurement of intangible assets in public sector using scaling techniques

This paper discusses the identification and measurement of intangible assets in the public sector. A discussion of intellectual capital theory identifies and classifies a number of intangible assets of relevance to the public sector. Multidimensional scaling and related multivariate techniques are proposed for their detection and quantification. The methodology is illustrated with a case study: the provision of council services through the Internet by Spanish municipalities. The technique identifies three intangible assets related to external structural capital: service, image and transparency. Five strategic groups reveal the different objectives, strategic use of the Internet, and actions taken by the various Spanish councils.

Weightless wealth: four modifications to standard IC theory

Standard Intellectual Capital theory contains some key assumptions or practices that limit our view on the weightless wealth of companies. Discusses four of those practices: first, the tendency to limit the discussion about the weightless wealth of companies to intellectual means of production. Second, the use of classification schemas that break down the total capital of a company into its contributing parts. Third, the tendency to treat intangibles the same way we treat tangible assets, by trying to force them into the double‐entry bookkeeping system. Finally, the lack of suitable yardsticks that enable the user to judge whether measurements should be seen as too high or too low. For each of these practices an alternative is provided, based on a practical and fully tested methodology. Shows that it is still possible to enrich existing Intellectual Capital theory and make it more applicable in practice.

A Theory of Intellectual Capital

The Problem and the Solution. The theory of intellectual capital has emerged in the past decade in response to the growing realization of the importance of information and knowledge Because ntellectual capital was first conceptualized during the same time period that the ideas of knowledge management and human capital became an important part of organizational discussion, now more than ever, it is essential to clarify, define, and differentiate the concept of intellectual capital This chapter summarizes current theories and offers an alternative theoretical approach to intellectual capital, emphasizing the dynamic impact it can have on an organization