The German guideline for intellectual capital reporting: method and experiences
Abstract
Purpose
This paper seeks to describe a methodology for intellectual capital reporting which was successfully tested in Germany. Special focus is on developing a short list of IC drivers for urgent management intervention.
Design/methodology/approach
Building on established self‐assessment methodologies from quality management and concepts of system dynamics, an action research design was applied to develop an intellectual capital reporting framework.
Findings
It is possible to identify and to assess intellectual capital drivers for corporate results and to prioritize them according to marginal economic contribution. Based on concepts from system dynamics, group learning processes and organizational learning processes are stimulated. Investing scarce resources in specific drivers of intellectual capital with high impact on the organization and additional high levels of managerial control supports long‐term performance.
Research limitations/implications
The research builds on self‐organizing principles; the quality of intellectual capital assessment thus depends massively on the rigour of the team involved. Comparability of assessments is limited, as the standard reference is the organization's strategy.
Practical implications
The suggested methodology builds heavily on methods already established in SMEs and is compatible with general management approaches. It is economical by design and delivers insight into the functioning of the organization as well as insights on future fields for management intervention.
Originality/value
This methodology combines two established concepts of self‐assessment and system analysis and applies them to intellectual capital in order to resolve the decision problem of allocating funds based on economic efficiency and impact.
Keywords
Citation
Bornemann, M. and Alwert, K. (2007), "The German guideline for intellectual capital reporting: method and experiences", Journal of Intellectual Capital, Vol. 8 No. 4, pp. 563-576. https://doi.org/10.1108/14691930710830756
Publisher
:Emerald Group Publishing Limited
Copyright © 2007, Emerald Group Publishing Limited