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Article
Publication date: 10 October 2016

Elena Shakina and Angel Barajas

This study explores the strategies adopted by companies during the economic crisis of 2008-2009. It investigates whether it is reasonable for companies to intensify their…

Abstract

Purpose

This study explores the strategies adopted by companies during the economic crisis of 2008-2009. It investigates whether it is reasonable for companies to intensify their investment in intangibles during recession periods. The purpose of this paper is to find empirical evidence that companies with clear intangible-intensive profiles are likely to outperform those without a clear strategy.

Design/methodology/approach

This paper explores the intangible-intensive strategies of companies in terms of their dynamics during the pre-crisis, crisis and post-crisis periods. Through dummy regression applied to data from more than 1,600 European companies involved in the empirical analysis, the paper aims to show moderating effects from intangible-intensive strategies on company performance, expressed in terms of economic value added and market value added.

Findings

The results established in this study shed some light on the global economic crisis in 2008-2009. The findings of this study demonstrate that companies with a conservative profile towards intangibles outperform both those without a defined profile and those with an innovative one. However, an innovative profile enables faster recovery after a crisis.

Originality/value

This paper contributes to the literature on the strategic management of companies, and highlights the particular importance of intangible-intensiveness when markets experience systematic distresses. It is emphasized that lessons learned during the recent global economic crisis must be taken into account in the strategic vision of any company.

Details

Journal of Intellectual Capital, vol. 17 no. 4
Type: Research Article
ISSN: 1469-1930

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Article
Publication date: 9 January 2017

Elena Shakina, Angel Barajas, Petr Parshakov and Aleksei Chadov

This study explores company strategies for intangibles. The authors investigate whether it is reasonable for companies to intensify intangibles when the current strategy

Abstract

Purpose

This study explores company strategies for intangibles. The authors investigate whether it is reasonable for companies to intensify intangibles when the current strategy is not intangible-intensive. The purpose of this paper is to elaborate a theoretical model to describe the strategic decision making in companies.

Design/methodology/approach

The authors use the Bellman-equation framework to find the conditions under which a change in strategy for intangibles is reasonable.

Findings

The results determine the parameters of returns on intangibles in different strategies, the optimal intangible stock and the influence of external economic shocks. The findings of the study demonstrate that many requirements have to be met to make intangible-intensive strategy beneficial for a company. Moreover negative shocks of crises force a company to postpone a new strategy on intangibles.

Practical implications

This research provides an insight into strategic behavior of companies under uncertainty. The theoretical findings demonstrate under which conditions companies should decide to switch to a strategy more intangible-intensive. This model can be used to empirically test parameters of different investment strategies of companies using structural estimation techniques.

Originality/value

This work contributes to the theory of managerial economics giving closed form solutions for the dynamic optimization of company behavior. The findings also show how this behavior might change when economic crises are faced or expected.

Details

Journal of Economic Studies, vol. 44 no. 1
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 12 October 2015

Elena Shakina and Angel Barajas

– The purpose of this paper is to reveal and empirically validate a new typology of company strategic profiles regarding intangible resources.

Abstract

Purpose

The purpose of this paper is to reveal and empirically validate a new typology of company strategic profiles regarding intangible resources.

Design/methodology/approach

The study is carried out in three steps. The first stage comes to identify the coordinates of intangibles in which strategic profiles are found. The second stage enables a clusterization of more than 1,600 European companies observed during seven years in the coordinates of intangibles. The last step introduces comparative analysis of these clusters in terms of their performance.

Findings

As a result of empirical analysis three strategic profiles regarding intangibles are discovered. Two of these profiles are called intangible-intensive as they demonstrate clear predominance of a particular set of intangibles. The innovative profile is associated with intensive investment in innovation and networking capabilities. The conservative profile puts emphasis on managerial capabilities and development of business process. The non-intangible-intensive profile, that has been called moderate, evenly allocates resources among intangibles keeping them on a low level relative to the intangible-intensive profiles.

Practical implications

This research is useful for practitioners in strategic and knowledge management. It provides insight into common features of company strategies for intangibles as well their impact on short- and long-term performance.

Originality/value

This work contributes to the field of strategic knowledge management by demonstrating a new relevant typology in company behavior regarding intangibles. Moreover, it equips decision makers in companies with a tool to design strategic vision in intangibles.

Details

Journal of Intellectual Capital, vol. 16 no. 4
Type: Research Article
ISSN: 1469-1930

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Article
Publication date: 9 July 2018

Carlos Fernández Jardón, Mariia Molodchik and Sofiia Paklina

The purpose of this paper is to explore strategy-specific competencies with regard to intangibles and provides empirical evidence of intangible-based strategy groups for…

Abstract

Purpose

The purpose of this paper is to explore strategy-specific competencies with regard to intangibles and provides empirical evidence of intangible-based strategy groups for Russian companies. Additionally, the study examines the link between intangible-based strategy and company performance.

Design/methodology/approach

The paper uses strategic group theory and the resource-based view framework to identify similar strategic behaviour of companies by employment of intangibles. In line with the intellectual capital concept, the study provides a cluster analysis that considers four types of intangibles: human, relational, innovation and process capital. These are measured through publicly available data using principal component analysis. The empirical part of the study uses a database of 1,096 Russian public companies, which covers the period 2004–2014.

Findings

As a result, the study reveals three profiles of strategic behaviour with regard to intangibles. The majority of Russian public companies (63.5 per cent) are Generics and pursue a non-intensive intangible strategy. Only 13.3 per cent of companies constitute the intangible-intensive profile by having endowment of all intellectual resources higher than the sample average. The remaining companies (23.2 per cent) also pursue an intangible-intensive strategy with a focus on innovation capital. Intangible-intensive strategic groups outperform Generics.

Originality/value

The study proposes a novel intangible-based strategy continuum, which straddles two polar strategies: generic and smart. The study introduces insights to better understand the differences in performance across intangible-intensive strategies and presents a new empirical inquiry into strategic behaviour with regard to intangibles in Russia.

Details

Management Decision, vol. 56 no. 11
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 24 August 2012

Marco R. Di Tommaso and Lauretta Rubini

This paper aims at providing a new point of view in the comparison between the sectoral specialization of Italian firms and that of companies of some emerging countries

Abstract

Purpose

This paper aims at providing a new point of view in the comparison between the sectoral specialization of Italian firms and that of companies of some emerging countries, both apparently concentrating on so‐called traditional sectors. What is argued in this paper is that, even if belonging to the same product category, goods produced by Italian and emerging countries' firms differ strongly in terms of quality, and that the competitive advantage of the Italian companies is mainly based on their capacity of exporting “intangible‐intensive goods”.

Design/methodology/approach

The study is based on the comparison between Italian and a selected group of emerging countries' (Brazil, China, India, Malaysia, Mexico, Thailand and Vietnam) exports of fashion‐related goods to the American market by means of a new index, called the RUPD (revealed unit price differential). The index is based on the comparison between the average export prices of Italian and of the selected emerging countries' fashion goods (at a five‐digit level). The RUPD “reveals” ex post how much more a consumer has been shown to be willing to pay for a specific good in comparison to another good sold on the same market, belonging to the same category and produced in another country (or group of countries). If the RUPD is calculated using sufficiently disaggregated data (at least at the four‐ or five‐digit level) we can hypothesize that such an index can actually reflect how different consumers perceive a product in comparison with another one, implicitly considering it as non‐homogeneous and non‐substitutable.

Findings

The analysis of RUPDs between Italy and the selected emerging countries shows that most Italian fashion goods are sold on the American market at much higher prices. The relative weight of sectors with higher RUPD has been rising over the years, with a growing number of products showing an increasing unit price differential between Italian products and those from emerging countries. Furthermore, many sectors maintain a high RUPD for the whole period considered (2000‐2009). This allows the authors to argue that in these fashion sectors American consumers perceive substantial differences between Italian and emerging countries' goods that are primarily intangible.

Research limitations/implications

Relevant insights can be drawn by adding to the analysis the evolution of market shares. The final part of the article presents a first exercise in this direction that seems to suggest interest for further analysis.

Practical implications

The analysis carried out in this article suggests that one way to face growing competition with emerging actors is not just to move towards high‐tech sectors. Even if operating in traditional sectors, Italian firms still offer excellence goods that are appreciated in international markets. For this scenario to be sustainable in the future, there are three suggested strategies: to continue to invest in R&D and innovation (also and especially in times of crisis) in order to maintain high levels of excellence; to strengthen marketing capacities (quality differentials have to be perceived and appreciated by consumers); and giving great importance to the utilization of the available intellectual property rights protection tools, since intangible‐intensive goods are particularly easy to imitate.

Originality/value

In the last few years, companies in highly industrialized countries have been seriously threatened by high competitive pressure coming from firms in new emerging countries. For this reason, many observers suggest that firms in advanced countries should reposition their production towards high‐tech sectors. The analysis carried out in this article suggests that a different perspective can originate different results, on the basis of which different strategies can and should be pursued in order for firms – even if operating in traditional sectors – to maintain a competitive advantage in international markets.

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Article
Publication date: 8 January 2018

Petr Parshakov and Elena Anatolievna Shakina

The purpose of this paper is to address the issue of efficiency of corporate universities. An efficiency is defined in relative terms: as having relatively better…

Abstract

Purpose

The purpose of this paper is to address the issue of efficiency of corporate universities. An efficiency is defined in relative terms: as having relatively better performance in comparison to other companies. Different indicators of performance were employed in order to analyze short-term and long-term efficiency. A comparative analysis of European companies and emerging Russian companies is performed in order to understand if there are country differences in the efficiency of corporate universities.

Design/methodology/approach

To avoid potential omitted variable bias, fixed effect within estimator is employed. This estimator enables controlling for a firm-specific time-constant effect which conditions company’s performance and is responsible for other individual traits. The rest of the characteristics are controlled with a proxy, which are traditional for corporate finance studies.

Findings

There are contradictory results for the efficiency of a corporate university; for the European companies, a corporate university brings positive effect for the short-term performance, nevertheless, as the authors have found that it destructs value in long term. A company with a corporate university has 70 percent less market value added than an average company. There is a negative short-term synergy while the long-term synergy is positive. The results for the Russian sample are very consistent: corporate universities have negative or neutral effect on the performance.

Originality/value

This study contributes to the literature about strategic management and human resources management. It addresses the issue on efficiency of corporate universities in companies considering this as one of the key strategic investment in human resource policy. It appears that the corporate university is not a panacea for all companies to develop their human development policy.

Details

Journal of Intellectual Capital, vol. 19 no. 1
Type: Research Article
ISSN: 1469-1930

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Article
Publication date: 1 June 2003

Jay Chatzkel

The collapse of Enron was almost entirely unexpected and shockingly rapid. While the major cause of this and other mega meltdowns has been determined to be financial…

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6883

Abstract

The collapse of Enron was almost entirely unexpected and shockingly rapid. While the major cause of this and other mega meltdowns has been determined to be financial manipulation and questionable accounting practices, the fall of these organizations has also raised questions about whether, and to what extent, their intellectual capital/intangible asset intensive business models contributed to their failure. This paper examines three core issues affecting the role of intellectual capital that have been highlighted by Enron's business failure: the linked issues of the effect of moving from a more traditional trading model to an intangible intensive trading model and the requirements for a viable intellectual capital/intangibles business model; changes in the accounting framework to ensure the integrity of an intellectual capital/intangibles‐based organization; and the implications of the Financial Accounting Standards Board (FASB) mandated changes in measuring and managing for goodwill and intangibles

Details

Journal of Intellectual Capital, vol. 4 no. 2
Type: Research Article
ISSN: 1469-1930

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Article
Publication date: 10 July 2017

Ricardo Vinícius Dias Jordão and Vander Ribeiro de Almeida

One of the main contemporary challenges in organisations is finding ways of measuring their intellectual capital (IC), and its effects on competitiveness and financial…

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3335

Abstract

Purpose

One of the main contemporary challenges in organisations is finding ways of measuring their intellectual capital (IC), and its effects on competitiveness and financial sustainability. The purpose of this paper is to analyse the influence of IC on the long-term financial performance of Brazilian companies.

Design/methodology/approach

Considering that previous studies have not been able to explain the role of IC in financial sustainability (measured by long-term corporate performance), this paper attempts to fill this gap by means of a quantitative, descriptive and applied study. Based on the theories of knowledge management, accounting and finance, the authors have undertaken a study of the companies listed on the BM&FBovespa, based on secondary data, using a multi-industrial cut, over the period 2005 to 2014, using descriptive and multivariate statistics.

Findings

The analysis supports three major conclusions: IC influences positively the profitability and corporate return of these companies; the more intangible-intensive public companies listed on the BM&FBovespa demonstrate higher financial sustainability than the others, in terms of profitability and corporate return, either individually, globally or by industry; and that IC helps increase financial performance, systematically, over time.

Research limitations/implications

Contributions of the following types were sought: theoretical (increasing an understanding of the effects of IC on business performance from a long-term perspective – an understanding that is still only incipient in the management literature); and empirical (increasing an understanding of the role of IC in the differentiation of companies, in organisational profitability and on the return on applications of resources).

Practical implications

The original proposal for the measurement of financial performance presented in this paper proved to be valid and consistent, complementing what is known about the subject under examination, contributing to the improvement of management theory and practice and providing a competitive benchmarking process. This can make it possible for company analysts or managers to evaluate their company in relation to its industry or its market as a whole by means of such indicators, individually or combined with other quantitative or qualitative metrics.

Originality/value

The results of this research reduce a gap in the management and accounting literature, as they shed light on the performance measurement process. In addition to the range and depth of the statistical tests carried out, attention should be drawn to the originality of the proposal presented in this paper. This facilitates the measurement of the effects of IC on financial performance through the selection and application of specific indicators for the assessment of the contribution of IC to organisational results.

Details

Journal of Intellectual Capital, vol. 18 no. 3
Type: Research Article
ISSN: 1469-1930

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Article
Publication date: 2 February 2021

Jianhua Zhang and Mohammad Shahidul Islam

The primary purpose of the study is to examine the role of market power in driving innovation and productivity of intangible intensive firms of eight emerging economies of…

Abstract

Purpose

The primary purpose of the study is to examine the role of market power in driving innovation and productivity of intangible intensive firms of eight emerging economies of the Association of Southeast Asian Nations (ASEAN-8).

Design/methodology/approach

There is hardly any study on emerging economies that explored the causal chain of R&D–innovation–productivity, considering the role of market power in a structural model. Taking advantage of the availability of firm-level data and following the extended version of the Crépon, Duguet and Mairesse (CDM) model, we intend to fill the gap. The CDM model first explores the link between R&D and innovation, then the latter's impact on productivity. Besides, it captures sectoral heterogeneity and the differing roles of technological and institutional innovation on productivity.

Findings

The manufacturing firms that held a higher markup had a more significant contribution to driving innovation than services one. While institutional innovation affected productivity positively, technological innovation had the opposite impact. Nevertheless, firms' higher degree of monopoly, in general, worsened productivity outcomes. The estimated results are robust to a range of alterations.

Practical implications

The study offers implications for the competition policy of ASEAN.

Originality/value

The sample of this study accounts for almost half of the world's best-performing emerging economies. Thus, the findings are likely to contribute to the thin literature on market power's role in driving innovation and productivity in the intangible economy of emerging markets.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 19 October 2010

Lídia Oliveira, Lúcia Lima Rodrigues and Russell Craig

The purpose of this paper is to analyse voluntary disclosures of intellectual capital (IC) items in the sustainability reports of Portuguese companies. The paper aims to…

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Abstract

Purpose

The purpose of this paper is to analyse voluntary disclosures of intellectual capital (IC) items in the sustainability reports of Portuguese companies. The paper aims to highlight the level, pattern and determinants of IC disclosures in those sustainability reports; and the potential for sustainability reports to be a medium for IC disclosures.

Design/methodology/approach

An index of voluntary disclosure of intangibles is constructed and deployed to analyse IC disclosures in the sustainability reports for 2006 of Portuguese firms, published on the web site of the Portugal's Business Council for Sustainability Development. Four hypotheses are tested about associations between that disclosure index and firm‐specific variables.

Findings

Disclosure of information about IC is more likely in sustainability reports of firms that have a higher level of application of the Global Reporting Initiative framework, and are listed companies.

Research limitations/implications

This study is cross‐sectional. Subjective judgment is involved in constructing the disclosure index.

Practical implications

The observed level and pattern of disclosure of IC information suggests that the preparation of a sustainability report is an opportune starting point for the development of IC reporting.

Originality/value

The study highlights the determinants of IC disclosures in sustainability reports; the high incidence of such disclosures; and points to the enhancement of legitimacy and reputation as potential incentives for firms to engage in such practice.

Details

Journal of Intellectual Capital, vol. 11 no. 4
Type: Research Article
ISSN: 1469-1930

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