Search results

This study aims to examine whether accounting knowledge is associated with a decision maker's tendency to ignore value added information in wealth measurement and distribution decisions.

A between‐subjects laboratory experiment was employed. Subjects prepared accounting reports that measured and distributed an entity's wealth based upon given accounting data. Accounting knowledge was measured as: a discrete variable by classifying subjects into high‐, low‐ and no‐accounting knowledge groups, and a continuous variable by classifying subjects on the number of accounting courses completed.

Findings provide empirical evidence that high levels of accounting knowledge interferes with a decision maker's ability to incorporate value added information (versus accounting profit) in wealth measurement and distribution decisions.

This experiment used subjects from the USA where the production and disclosure of a value added report is not mandated. The results should be tested in a country where the statement of value added is routinely produced, disclosed and audited.

This study shows the dysfunctional effect of accounting knowledge which appears to hinder performance in wealth measurement and distribution decisions.

This is the first attempt to explain why decision makers may ignore value added information in wealth measurement tasks and distribution decisions by focusing on the role of knowledge structures.

The purpose of this paper is to propose a new framework to assess the value of a knowledge worker (KWr) in his/her organization.

The proposed framework determines the value of each KWr based on his/her contribution to organizational value-added. The framework includes two steps: the contribution of each work process to the total organizational value-added is determined using Knowledge Value Added method; and the value of each KWr is obtained based on the contribution of his/her operational knowledge to the value-added of the processes.

This article elaborates on how KWrs’ contribution to organizational value-added can be used to assess them. A new framework is designed to serve this purpose. A case study was also carried out in a marketing department of a detergent manufacturing company to test the practical usability of the framework. The statistical analysis of the results confirms the validity of the framework.

The results of this research can be discussed in terms of two main issues. First, this study highlights the imperative role of KWrs in achieving success for organizations in today’s knowledge-based economy. This research urges managers of organizations to fully recognize and measure the importance and value of KWrs and recommends that the mechanisms of human resource management (such as compensation and rewarding systems, hiring process and training and development) can be modified with respect to this value measurement. Second, an applicable framework with specific and clearly defined steps is introduced in this paper, which can be used by organizations to determine the value of KWrs based on their contribution to organizational value-added. The proposed framework has two important characteristics which previous models and frameworks failed to deliver: this new framework contains detailed items and procedures that could be easily obtained and fully understood by practitioners and researchers; and the proposed framework provides the ability to compare all types of KWrs. The results obtained by implementation of this framework give insight into the appropriate managerial approaches to reach personal and organizational goals simultaneously.

Due to the differences between knowledge work (KW) and manual work, the management of KWrs requires its own methods and techniques. In this article, a brand new framework for KWrs’ value assessment is developed based on the characteristics of KW.

The purpose of this paper is to increase the transparency of the value‐creation chain in the stock market. It aims to: conceptualize the value‐added through the relational capital, inductively develop models on how values are created, and discuss the values created for the analyst firm, the clients and investors in the stock market in general.

The paper is based on a case study of sell‐side analysts at a big Swedish investment bank and their work with real life situations of changes in recommendations.

The findings of the case study indicate that analysts, through their relational capital, access competitive advantages needed for remaining on a highly competitive market. They get access to value‐added information and knowledge and also business for the firm. This helps them to fulfill the three roles played, i.e. as information intermediaries, knowledge builders and businessmen. However, the analysts' dependencies, due to their relational capital and the analysts' conflicting roles, result in ambiguous or even biased information. The values added to clients differ between prioritized clients who receive value‐added information through the relational capital with the analysts and non‐prioritized clients with limited, or no access, to the analysts' services.

Value created through relational capital within organizations has been intensively studied within the area of intellectual capital. However, the sell‐side analysts' value‐creation chain linked to their relational capital with company representatives and clients, considered in the present study, has been neglected.

The present study develops a multi-theoretic framework of the mechanisms of value creation in interorganizational relationships and of the key factors influencing those mechanisms. The integrative use of several theories in building the model is justified by numerous studies suggesting that a multi-theoretic approach is required to understand the complexity of interorganizational relationships (Gulati, 1998; Osborn & Hagedoorn, 1997; Park et al., 2002). We believe that the relationships between start-up companies and their corporate investors, with each party holding a diversity of strategic and financial objectives, are not less complex than other potential interorganizational relationships. They may therefore also require ideas from several theories to be properly understood. In this study, we build the models applying primarily the resource-based and the knowledge-based views, as well as social capital theory. Ideas from other theoretical approaches are used to complement these theories.

As markets become increasingly competitive, it is important for multinational corporations to generate value. Both headquarters and subsidiaries are responsible for contributing to value generation, albeit they may do so in different ways. This builds on the notion from the literature that it is possible to discern two separate concepts that relate to the generation of value, namely, value creation and value added. These concepts are often used interchangeably, without a clear distinction what they de facto reflect or what the underlying mechanisms of value creation and value added are.

Based on a set of assumptions regarding headquarters–subsidiary relations conceptual arguments related to value generation are developed.

Teasing out the differences between the concepts becomes important as it leads to a fuller understanding of what a headquarters do in different situations and of what a headquarters–subsidiary relationship entails for value generation.

In this chapter, it is argued that value-adding activities tend to be conducted by a headquarters, but are dependent on varying knowledge situations of headquarters, while the value creation process tends to take place at the subsidiary level.

Knowledge value added is a new cost accounting technique making waves in intangibles accounting. It helps managers conduct a business process audit. However, the managers need a behavioral tool to understand the factors that influence human capital knowledge value add, in order to increase the organizational value add. This tool helps understand the knowledge professional’s perceptions of the organization’s culture towards intellectual enterprise, knowledge management support systems and processes, as well as individual value add, the perceived performance, innovation and consequences of quitting. The tool thus helps formulation of strategies towards effective management of human capital and creating higher value add. A leading Indian infotech organization was studied as a case in point and the results are being used to design more effective knowledge management strategies.

The aim of this article is to highlight some characteristics of balancing dimensions for an intelligent remuneration system in the knowledge economy; in other words, what to look for when remunerating sustainable growth of capabilities for future earnings potential (i.e. intellectual capital). The article also aims to present a supplement to the thinking regarding compensation systems.

The article is based on and refined from a MBA thesis by J. Camp and presents a perspective on intelligent remunerations based on intellectual capital, motivational psychology and knowledge management theory.

This paper presents some aspects of an intelligent remuneration system for growth of intellectual capital by unleashing a larger potential of the human capital dimensions. In order to enhance mind value‐added by talents, enterprises need to offer their people a more sustainable remuneration on their invested personal human capital, consisting of both tangible and intangible remunerations.

The value of this paper is the perspective of intelligent remunerations based on connected thinking around intellectual capital, psychology and knowledge management. It will add a broadening perspective to the current thinking regarding compensation models in knowledge‐intensive firms. An intelligent remuneration system is a system that nourishes collective organizational learning and continuous renewal.

The purpose of this paper is to investigate the significance of Web 2.0 and social media for organizational development and adaptation to an ever‐changing business environment and its successful managing. A model is proposed based on the concepts of innovative economy, knowledge management and social media for value creation in knowledge‐based industries.

The paper examines critical factors that influence the role of social media in organizational change and value creation in knowledge‐based industries.

The paper contributes to discussion about the increasingly important role of social media in the value added chain in knowledge‐based industries.

Social media are still an emerging phenomenon and further studies are required to investigate these relationships over a longer period of time.

The topic is relevant for designing corporate strategies in knowledge‐based companies becoming a part of global networks. Better understanding of the impact of social media on value added could significantly enhance both the top and bottom lines.

The paper explores when and why the inexpensive, but increasingly wider, use of social media in knowledge‐based industries is preferred to traditional media. This paper intends to give executives practical hands‐on advice for using social media in business campaigns.

This paper aims to study the economic significance of using a blended business and knowledge strategy through the lens of conventional financial management before and after the implementation of KM initiatives in a knowledge‐intensive, high‐growth firm that had gone through business diversification through organic developments as well as mergers and acquisitions for over a decade.

The economic value added (EVA) method is proposed as a measure of the effective usage of capital funding in the firm before and after its KM program. The extent of the economic impact due to the contributions of various KM strategies was analyzed using standard financial management reporting. This enabled the derivation of follow‐on KM initiatives that were consistent with the target objectives.

The EVA method was found to be valid and credible in determining the net impact of various KM initiatives. This was in a form that was comprehensible to top management and KM decision‐makers.

Knowledge management as a strategic imperative has gained significance over the past decade for its ability to handle the complexity of information to further create, transfer and reuse intellectual capital. More importantly, KM is seen as the key business enabler across different enterprises for its ability to enhance competitiveness and shareholder value. The EVA method used in this paper has allowed the valuation of KM initiatives.

The emergence of KM as a blended business strategy has hence proved to be vital for the sustainability of the knowledge‐driven business model that looks beyond the physical and financial into intellectual and social capital.

The paper presents a longitudinal case study of a fairly large East Asian conglomerate.

Growth strategies exist, specifically for business divisions with a poor competitive position, by “orchestrating” value chains in external networks. The theory of competence development provides a basis for successfully developing new value architectures, since massive changes in a business division can take place only if they are based on durable competences. Four steps to orchestrating value chains can be deduced: (1) identifying changes in the value architecture as a possible growth strategy, (2) creating the organizational prerequisites for the deconstruction of value chains, (3) selling nonspecific value-added and (4) building networks around the core business that link (nonspecific) noncore activities to the firm.