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Article
Publication date: 8 April 2014

Sandra Cohen, Vassilios-Christos Naoum and Orestes Vlismas

The purpose of this paper is to investigate the relationship of intellectual capital (IC) with the strategy of small-medium enterprises (SMEs) and their executive decisions…

2503

Abstract

Purpose

The purpose of this paper is to investigate the relationship of intellectual capital (IC) with the strategy of small-medium enterprises (SMEs) and their executive decisions regarding the strategy of their IC portfolio during a financial crisis.

Design/methodology/approach

The analysis is informed by the responses of 162 Greek SMEs on a structured questionnaire. Greek SMEs constitute an appropriate research setting since they operate within an environment of economic recession, financial turbulence and operational uncertainty.

Findings

Initial analysis indicates that SMEs’ strategic position seems to affect the composition of their IC portfolio, especially when a SME is strategically classified as Analytic according to Miles and Snow's (1978) typology. Moreover, Greek SMEs do not seem to follow the suggested by literature executive decisions for the strategic management of their IC portfolio. They apply on their IC components strategies that could be classified as “Act” or “Analyse” under Wissenzbilanz's typology (Bornemann and Alwert, 2007) regardless of the prospects for improvement expected for these IC components. Therefore, while SMEs seem to care about their IC, they do not manage it in a coherent and strategically beneficial way.

Research limitations/implications

The study applies a novel methodology. By properly adapting the Wissenzbilanz's typology for IC executive decisions, it provides a research approach for collecting cross sectional firm data for IC executive decisions. A possible limitation but also an area for future research is to examine the implications of the relations between SMEs’ strategy and IC portfolio on SMEs’ financial performance.

Practical implications

The practical implications of this study are twofold. First, managers should take into consideration that IC seems to be a strategic enabler even in periods of financial crisis and, thus, decisions regarding IC investments should not be abandoned. Second, SMEs tend to follow different than the recommended by literature executive decisions for the components of their IC portfolio. This might reduce the potential returns on IC investment. Therefore randomly investing in IC will not result in the expected benefits.

Originality/value

The contribution of this study is that explores the relations of SMEs’ executive decisions in relation to the strategic management of their IC components as well as the influence that the strategic position of SMEs exerts on the composition of their IC portfolio during a financial crisis.

Details

Journal of Intellectual Capital, vol. 15 no. 2
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 15 May 2019

Ayse Elvan Bayraktaroglu, Fethi Calisir and Murat Baskak

The purpose of this paper is to propose an extended and modified value-added (VA) intellectual coefficient (VAIC) model, which includes intellectual capital (IC) components which…

4427

Abstract

Purpose

The purpose of this paper is to propose an extended and modified value-added (VA) intellectual coefficient (VAIC) model, which includes intellectual capital (IC) components which were missing in the original VAIC approach. The proposed model has been used to explore the relationship between IC and firm performance for Turkish manufacturing firms on a more detailed level.

Design/methodology/approach

Multiple regression analysis has been employed to identify the IC components, which predict the performance of the firm and the moderating effect of some IC components on IC components–firm performance relationship. Data are required to calculate the IC components, and firm performance variables have been obtained from the financial reports of the Turkish manufacturing firms for the period 2003–2013.

Findings

According to the results for Turkish manufacturing sector innovation capital efficiency has a moderating effect on the relationship between structural capital efficiency (SCE) and profitability, meaning, depending on an increase in R&D expenses, the effect of SCE on profitability also increases. On the other hand, it has been found that innovation capital efficiency has a direct impact on firms’ productivity. The results also showed that IC efficiency components have a moderating role on the relationship between capital employed efficiency and profitability.

Research limitations/implications

There might be a time lag until the effect of R&D investments can be observed in firms’ performance. However, this lagged impact of innovation capital and also other IC components on future firm performance has not been investigated due to concerns related to sample size.

Originality/value

The proposed model differs from the original VAIC model in three ways: it, namely, includes two additional IC components, customer capital (CC) and innovation capital. It explores the moderating effect of innovation capital on structural capital–firm performance relationship and the moderating effect of IC components on employed capital–firm performance relationship. As the last difference, it proposes an alteration in the VA calculation due to newly added IC components, CC and innovation capital.

Details

Journal of Intellectual Capital, vol. 20 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 16 May 2016

Elisabeth Albertini

– The purpose of this paper is to enhance knowledge of the full set of interrelations between IC components by providing an inductive typology of their strategic interactions.

Abstract

Purpose

The purpose of this paper is to enhance knowledge of the full set of interrelations between IC components by providing an inductive typology of their strategic interactions.

Design/methodology/approach

To answer the research question the author conducted a content analysis of CEOs’ letters to shareholders published by 122 companies among the 200 first companies from the Fortune Global 500 from 2008 to 2012.

Findings

The results show that these three IC components interact with each other around the central position held by relational and structural capital and to a lesser extent human capital. Companies that have a positive evolution in the ranking focus significantly more on the structural capital while those who have a negative evolution in the ranking mention more the relational capital.

Research limitations/implications

The study is based on the CEOs’ letters that might limit the generalization of the findings. Nonetheless, this research highlights a full and fruitful set of interrelations between IC components providing a business practices-oriented typology.

Practical implications

This study provides deep insights into the interrelations between IC components that can significantly help managers to identify the strategic connections between IC dimensions.

Originality/value

This study contributes to the literature by expanding the actual academic classification of IC to five clusters of components. This research highlights that relational capital interacting with structural capital holds a central position in companies’ business strategy.

Details

Management Decision, vol. 54 no. 4
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 27 July 2010

Natasja Steenkamp and Varsha Kashyap

The purpose of this paper is to focus on small and medium enterprises (SMEs) in an attempt to cover the gap in research on intellectual capital (IC) applied to SMEs. The paper…

5356

Abstract

Purpose

The purpose of this paper is to focus on small and medium enterprises (SMEs) in an attempt to cover the gap in research on intellectual capital (IC) applied to SMEs. The paper informs the debate on the importance of IC by providing empirical evidence of SME managers' perceptions about the importance and contribution of intangible assets to their businesses.

Design/methodology/approach

Questionnaires were sent to New Zealand SMEs investigating managers' perceptions about the importance of and the contributions that intangible asset components make to their businesses, and to assess their familiarity with the term intellectual capital (IC) and their preferences in using the term IC versus intangible assets. The results pertaining to the importance of intangible assets were statistically analysed.

Findings

This paper informs that the broad assumption that intangible assets are important and are value drivers of business' success is valid for small and medium enterprises. The majority of respondents perceive intangible asset components to be essential, very important and important to the success of their business and that these components collectively make several contributions to their businesses. Based on average rating, customer satisfaction ranked as the most important and thereafter customer loyalty, corporate reputation, product reputation and employee know‐how. A minority of respondents indicated that only a few components are not very important and not important at all, the least important component being distribution agreements, followed by employee education and relationships with investors. The majority of respondents are familiar with the term IC, and the same number prefer to use the term “intangible assets” as those preferring to use the term IC.

Practical implications

Providing evidence of SME managers' perceptions of the importance and contributions of intangible assets is essential to raise awareness among SME managers in understanding, identifying and managing intangible assets that are important value drivers for their businesses. Such awareness is essential in particular in countries where SMEs make up a significant proportion of business and employment. The results of this study may be a benchmark for SME managers unfamiliar and ignorant about the topic of this research.

Originality/value

This paper is the first providing empirical evidence as to SME managers' perceptions about the importance of and the contributions of intangible assets to their businesses, as well as about their familiarity with the IC concept and preference in using IC terminology.

Details

Journal of Intellectual Capital, vol. 11 no. 3
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 15 September 2023

Saad G. Yaseen, Ihab El Qirem, Manal Nussair and Hanadi Sa'd

The purpose of this study is to examine the impact of intellectual capital (IC) components and absorptive capacity (ACAP) on entrepreneurial orientation (EO). Furthermore, it…

Abstract

Purpose

The purpose of this study is to examine the impact of intellectual capital (IC) components and absorptive capacity (ACAP) on entrepreneurial orientation (EO). Furthermore, it attempts to investigate the mediating role of ACAP between intellectual components and EO.

Design/methodology/approach

Using a self-administered survey to sample the Jordanian pharmaceutical industry, the research measurement scale was adapted from previous studies, and data were collected from 24 pharmaceutical companies. The proposed conceptual model and associated hypotheses were tested using structural equation modeling.

Findings

The empirical findings indicate that relational capital (RC) and structural capital (SC) have a significant impact on EO and account for 72.2% of this aspect. However, it is somewhat unexpected to find that human capital does not have a significant direct impact on EO. ACAP positively mediates the relationships between RC and SC and EO. Finally, this study has several theoretical and practical implications with regard to the business literature and management practices.

Originality/value

This research bridges gaps in the literature and highlights the importance of ACAP in knowledge-based industries. The assessment and estimation of how knowledge ACAP is associated with entrepreneurship orientation has not been previously provided. From a practical perspective, the findings of this research can be used by firms in the pharmaceutical industry to enhance ACAP and better exploit their IC, leading to a more proactive and innovative entrepreneurship orientation. This, in turn, can lead to the development a new products and services. Furthermore, by examining the mediating role of ACAP between intellectual capacity components and EO in the pharmaceutical industry, the research contributes to the growing body of literature on entrepreneurship orientation in developing countries.

Article
Publication date: 1 October 2001

Jeltje van der Meer‐Kooistra and Siebren M. Zijlstra

In today’s knowledge‐based economy intellectual capital (IC) is becoming a major part of companies’ value. Being able to manage and control IC requires that companies can…

5082

Abstract

In today’s knowledge‐based economy intellectual capital (IC) is becoming a major part of companies’ value. Being able to manage and control IC requires that companies can identify, measure and report internally on IC. As financial accounting rules ban full disclosure of IC in the annual report the external stakeholders lack information about companies’ value, which may have as a consequence that stakeholders make wrong or bad decisions. To remedy this situation, new tools must be developed which enable managers to identify and measure a company’s IC and to report on it within a consistent framework. The theory on IC is still in its infancy. Proposes to contribute to the development of a reporting model on IC. Analyses the various reporting models recently being developed and used in practice. Moreover, the existing reporting models have been discussed in depth with the management of three Dutch companies with a high degree of IC and with four financial analysts as external users of the information. Describes the findings of the discussions with the practitioners. Based on both the theoretical evaluation of the reporting models and the evaluation in practice, describes the building blocks of an IC reporting model.

Details

Accounting, Auditing & Accountability Journal, vol. 14 no. 4
Type: Research Article
ISSN: 0951-3574

Keywords

Article
Publication date: 3 July 2017

Anna Ujwary-Gil

The purpose of this paper is to analyze business model (BM) and intellectual capital (IC) of a firm with a focus on their common elements. The common bases in the field of…

1190

Abstract

Purpose

The purpose of this paper is to analyze business model (BM) and intellectual capital (IC) of a firm with a focus on their common elements. The common bases in the field of strategic management for these two concepts are, among others, resource-based view, knowledge-based view, intellectual capital-based view, dynamic capabilities, and configurational approach. It indicates areas in which these two concepts can benefit from each other, e.g. in classification of components, their configuration, or dynamic approach. This general review examines the following research questions: What are the common concepts for the BM and IC? What are their common components? What does the dynamic approach to IC and BM mean?

Design/methodology/approach

The Web of Science™ Core Collection database was selected for the period 1975-2014 and the Journal of Intellectual Capital (JIC) indexed in Scopus® (Elsevier) was incorporated into the analysis for the period it had been indexed by Scopus (1990-2015). These databases were selected because they offer a reliable overview of historical data regarding journals, articles, and citation impact. The key filter criteria were the presence of the phrases “business model” or “intellectual capital” in the article title, abstract, and key words in order to narrow down the selection to the most appropriate results for the research area.

Findings

This paper investigates two concepts from the point of view of their underpinnings in management, definitions, and components, as well as value creation. Analysis of the foundations in management allows the author to present a cohesive model, which depicts a comprehensive approach to analysis of these two concepts. Many common elements have been identified and investigated.

Originality/value

First, it provides an indication of the common underpinnings of the analyzed concepts within the framework of strategic management and proposals for their development toward resource, knowledge, and IC accumulation, combination and heterogeneity-based views. Second, it presents an analysis of the BM and IC components, showing common elements between them. Third, it provides a description and analysis of dynamic view of BM and IC components in a value creation context.

Details

Baltic Journal of Management, vol. 12 no. 3
Type: Research Article
ISSN: 1746-5265

Keywords

Article
Publication date: 12 March 2018

Eugénia Pedro, João Leitão and Helena Alves

The purpose of this paper is to determine the predominant classification of intellectual capital (IC), in terms of components, using the literature of reference on the…

2089

Abstract

Purpose

The purpose of this paper is to determine the predominant classification of intellectual capital (IC), in terms of components, using the literature of reference on the relationship between IC and performance and considering multi-dimensional analysis axes (MAAs): organisational, regional and national.

Design/methodology/approach

A systematic literature review (SLR) is presented focussing on empirical studies on IC published in the period 1960-2016. A protocol for action is defined and a research question is raised, gathering data from the databases of: Web of Science, Scopus and Google Scholar. A social network analysis is also provided to determine the type of networks embracing groups, IC individual components and performance type.

Findings

Of the 777 papers included in the SLR, 189 deal with the relationship between IC and performance. The paper highlights the greater development of empirical studies starting from 2004; the organisational MAA is the most studied. The most frequently used groups of components in studies dealing with IC’s influence on performance corresponds to a triad of human capital; structural (organisational or process) capital; and relational (social or customer) capital, which determine positively the performance of organisations/regions/countries, but their influence is not linear and depends on various factors associated with the context and surrounding environment.

Practical implications

This study has wide-ranging implications for politicians/governments, managers and academics, providing empirical evidence about the relationships between the components of IC and performance, by MAAs, and a global vision and better understanding of how those IC components have developed and how they are related to performance.

Originality/value

Due to the high number of references covering a wide range of disciplines and the various dimensions (e.g. organisational, regional and national) that form IC, it becomes fundamental to carry out an SRL and systematise its MAAs to deepen knowledge about what has been discovered/developed in this domain, in terms of empirical studies, in order to situate the topic in a wider theoretical-practical context. The paper is exceptionally wide-ranging, covering the period 1960-2016. It is one of the first clarifying studies on systemisation of the literature on IC, by MAA, and an in-depth study of IC’s impact on the performance of organisations/regions and countries which may serve as a guideline for future studies using the taxonomy proposed.

Details

Journal of Intellectual Capital, vol. 19 no. 2
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 26 August 2021

Angélica Pigola, Pedro Victor De Santi, Priscila Rezende da Costa and Jose Storopoli

The authors examined intellectual capital (IC) components, namely human, structural and relational capital, on firm performance (FP) and innovation performance (IP), while also…

Abstract

Purpose

The authors examined intellectual capital (IC) components, namely human, structural and relational capital, on firm performance (FP) and innovation performance (IP), while also examining the role of knowledge management (KM) in this context.

Design/methodology/approach

The authors employed a meta-analysis using 81 studies from 2006 to 2020 using bivariate analysis, meta-analytic structure equation modeling (MASEM) and fuzzy-set qualitative comparative analysis (fsQCA) to study IC components on FP and IP.

Findings

The MASEM results show that IC affects positively on FP, but not in a significant level and affects positively and significantly on IP. The findings also reveal that the moderation effect of KM affects positively on FP but not on IP. Additionally, the fsQCA analysis shows that KM and its multidimensional role has a positive impact on FP and IP and has a potential to be consistent as a dynamic component for IC.

Research limitations/implications

The results may be limited by different statistical biases and inverse causality issues or associated with contextualities related to the studies of the sample selected by our criteria.

Practical implications

Managers can identify the appropriate IC elements and act accordingly. The study suggests that mobilizing human, structural, relational and knowledge capital must begin from the firms' birth and continue further during firms' stages of the business.

Social implications

IC is the bridge of evolution for future societies. Knowing how its components impact all levels of corporate environment indirectly influences how societies build up their social bases and policies to fulfill new professional generations.

Originality/value

By using the MASEM and fsQCA, the authors have more detailed insights into the multidimensional context of KM in IC components on firm and innovation performance identifying configurations of intangible resources.

Details

Journal of Intellectual Capital, vol. 23 no. 6
Type: Research Article
ISSN: 1469-1930

Keywords

Article
Publication date: 23 March 2023

Fawad Ahmad

Value-added intellectual coefficient (VAIC) is extensively used as a measure of intellectual capital (IC), but it is criticized for not capturing the totality of IC. Therefore…

Abstract

Purpose

Value-added intellectual coefficient (VAIC) is extensively used as a measure of intellectual capital (IC), but it is criticized for not capturing the totality of IC. Therefore, this study aims to analyse critiques of the original VAIC and proposes a modified VAIC by adding missing IC components and adjusting for exogenous factors. The study uses a modified VAIC model to investigate the relationship between IC, firm performance (FP) and market value (MV) for US non-financial firms.

Design/methodology/approach

This study employed fundamental data of US non-financial firms listed on the NYSE and NASDAQ from 1980 to 2019. A final sample consisted of 6,019 firms and 62,686 firm-year observations.

Findings

The results provide a significant positive effect of aggregate and components of modified VAIC on FP and MV. Moreover, results validate the modified VAIC model and find that the modified VAIC explains changes in shareholders' MV. In addition, findings indicate that modified VAIC serves as an additional intangible factor to explain firms' capital structure decisions.

Practical implications

The findings have important implications for management, owners, researchers and investors.

Originality/value

The modified VAIC model differs from the original VAIC model in four ways: first, it corrects the measurement of structural capital efficiency (SCE) following the accounting principle. Second, it replaces SCE with innovation capital efficiency (InVCE) and relational capital efficiency (RCE) to account for missing components of information of structural capital (SC). Third, the modified VAIC model adjusts for exogenous factors like business cycles and cross-industry variations. Finally, with the addition of InVCE and RCE as components of SCE, innovation capital (InVC) and relational capital (RC) are added to the calculation of value-added (VA) as components of IC.

Details

Managerial Finance, vol. 49 no. 9
Type: Research Article
ISSN: 0307-4358

Keywords

1 – 10 of over 8000