Comparative justification on intellectual capital

Abstract

With the development of computerization and networking capabilities, there is a significantly enhanced opportunity for sharing information and knowledge world‐wide. For an organization to survive in these turbulent times, there is a great need for its continuous renewal through the introduction of new, innovative products and processes that are based on new knowledge. As a result, the management and measurement of intellectual capital have attracted a lot of attention in recent years both in the media and from academia. This paper assesses different methodologies of intellectual capital measurements, both from a macro valuation standpoint and from the operating perspective. Valuation metrics are suggested and it demonstrates how it is applied to a cross‐section of firms. The paper also shows that there is no conceptual framework commonly accepted and there is a considerable lack of consistency both inter‐country and intra‐country. This paper has taken three firms from distinct industries and has applied human, relational or structural capital metrics depending on which is the most relevant.

Citation

Seetharaman, A., Lock Teng Low, K. and Saravanan, A.S. (2004), "Comparative justification on intellectual capital", Journal of Intellectual Capital, Vol. 5 No. 4, pp. 522-539. https://doi.org/10.1108/14691930410566997