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Article

Pirjo Ståhle, Sten Ståhle and Carol Y.Y. Lin

The purpose of this paper is to examine to what extent national intangible capital (NIC) explains GDP growth and to assess its impact on GDP formation in different…

Abstract

Purpose

The purpose of this paper is to examine to what extent national intangible capital (NIC) explains GDP growth and to assess its impact on GDP formation in different countries. The paper brings a new perspective to explaining hidden economic drivers.

Design/methodology/approach

The paper introduces a new theoretically and computationally justified method, so-called ELSS model that is based on expansion and augmentation of the Cobb-Douglas production function with a wide range of NIC indicators. The method is applied by using the database that contains NIC indices for 48 countries covering the period from 2001 to 2011.

Findings

The results show that intangible capital accounts for 45 per cent of world GDP. The figure for the USA is 70.3 per cent and for the European Union 51.6 per cent. The Nordic countries stand out with a higher figure at 64.7 per cent, with NIC contributing to 72.5 per cent of GDP in Sweden, 69.7 per cent in Finland and 67.6 per cent in Denmark.

Research limitations/implications

The expanded Cobb-Douglas production function is sensitive to valuations of capital inputs and sensitive to estimates of production shares for various augmenting and expanding inputs. Therefore further work is needed to develop and test methodologies for the assessment of all of these.

Practical implications

ELSS production function helps to give a realistic picture of the value and impact of NIC and accordingly gives evidence for accurate investment decisions for the future.

Social implications

The method will help policy makers figure out what steps are needed to reduce the cross-country NIC differences.

Originality/value

The authors have uncovered the value of NIC beyond monetary inputs, and at the same time taken account of country specifics. The ELSS formula is comprehensive yet not too complicated to replicate. The approach significantly contributes to the development of the current research tradition into intangibles.

Details

Journal of Intellectual Capital, vol. 16 no. 1
Type: Research Article
ISSN: 1469-1930

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Article

Sten Ståhle and Pirjo Ståhle

The paper aims to provide an assessment of a tool for the macro‐level measurement of intellectual capital developed by Corrado, Hulten and Sichel (CHS model).

Abstract

Purpose

The paper aims to provide an assessment of a tool for the macro‐level measurement of intellectual capital developed by Corrado, Hulten and Sichel (CHS model).

Design/methodology/approach

The aim paper assesses the validity and accuracy of the CHS model in measuring intellectual capital in general and to see whether it has application at the national economy level.

Findings

The model's new accounting ideas have great potential, but some serious question marks remain. The key advantage of the model is that it accumulates capitalized intangibles over time. On the other hand, the elements of intellectual capital, i.e. spending on innovative property and economic competencies, software and other computerized information, are too vague and problematic.

Originality/value

CHS model is a rather frequently used method for measuring intellectual capital. However, its validity has not been under critical analysis or examination earlier. Therefore, the results of this paper bring important and valuable information into reliable measurement of intellectual capital and are a step forward to develop more valid methodologies within intellectual capital research.

Details

Journal of Intellectual Capital, vol. 13 no. 2
Type: Research Article
ISSN: 1469-1930

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Abstract

Details

Fostering Productivity: Patterns, Determinants and Policy Implications
Type: Book
ISBN: 978-1-84950-840-7

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Article

Felix Roth

This paper aims to revisit the relationship between intangible capital and labour productivity growth using the largest, up-to-date macro database (2000–2015) available to…

Abstract

Purpose

This paper aims to revisit the relationship between intangible capital and labour productivity growth using the largest, up-to-date macro database (2000–2015) available to corroborate the econometric findings of earlier work and to generate novel econometric evidence by accounting for times of crisis (2008–2013) and economic recovery (2014–2015).

Design/methodology/approach

To achieve these aims, this paper employs a cross-country growth accounting econometric estimation approach using the largest, up-to-date database available encompassing 16 EU countries over the period 2000–2015. The paper accounts for times of crisis (2008–2013) and of economic recovery (2014–2015). It separately estimates the contribution of three distinct dimensions of intangible capital: (1) computerized information, (2) innovative property and (3) economic competencies.

Findings

First, when accounting for intangibles, the paper finds that these intangibles have become the dominant source of labour productivity growth in the EU, explaining up to 66 percent of growth. Second, when accounting for times of crisis (2008–2013), in contrast to tangible capital, the paper detects a solid positive relationship between intangibles and labour productivity growth. Third, when accounting for the economic recovery (2014–2015), the paper finds a highly significant and remarkably strong relationship between intangible capital and labour productivity growth.

Originality/value

This paper corroborates the importance of intangibles for labour productivity growth and thereby underlines the necessity to incorporate intangibles into today's national accounting frameworks in order to correctly depict the levels of capital investment being made in European economies. These levels are significantly higher than those currently reflected in the official statistics.

Details

Journal of Intellectual Capital, vol. 21 no. 5
Type: Research Article
ISSN: 1469-1930

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Article

Georgios I. Zekos

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination…

Abstract

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Details

Managerial Law, vol. 45 no. 1/2
Type: Research Article
ISSN: 0309-0558

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Article

Iain Clacher

The purpose of this paper is to review the issues, difficulties, importance for public policy and current initiatives associated with developing a more comprehensive…

Abstract

Purpose

The purpose of this paper is to review the issues, difficulties, importance for public policy and current initiatives associated with developing a more comprehensive national accounting framework in relation to public and private sector investments in intangible assets.

Design/methodology/approach

The paper analyses and evaluates the most salient statistics on intangible asset investments and the implications for public and private sector policy makers.

Findings

The UK economy has a high representation of firms and activities that invest in intangible assets that are not traditionally included in national accounts and that their exclusion has a significant impact on the UK's apparent growth and productivity performance.

Originality/value

The paper discusses a range of measurement and other difficulties in significantly developing a comprehensive national accounting framework that fully incorporates the impact of intangible asset investments upon national growth and productivity metrics.

Details

Journal of Financial Regulation and Compliance, vol. 18 no. 2
Type: Research Article
ISSN: 1358-1988

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Article

Romilio Labra and M. Paloma Sánchez

The purpose of this paper is to review the literature on national intellectual capital (NIC) in order to identify and compare the main models to measure and report IC at…

Abstract

Purpose

The purpose of this paper is to review the literature on national intellectual capital (NIC) in order to identify and compare the main models to measure and report IC at the country level and to examine the differences from and similarities to the IC approach for firms.

Design/methodology/approach

A systematic literature review was carried out using three scientific databases and the five most important journals. Additional information was also reviewed. The search covered the period from January 2000 to December 2012. The models to measure intangibles were analyzed and compared using qualitative and quantitative techniques.

Findings

The literature review shows that although such literature is still nascent and relatively scarce, there is growing interest in measuring, reporting, and managing IC for countries as a whole. NIC studies have been published in a small number of journals and more theoretical work is required. There are two main types of methods to assess and report on NIC. Despite the differences among models, their findings tend to converge.

Practical implications

The information obtained contributes to the selection of models. This selection can be based on pragmatic considerations, such as the availability of data.

Originality/value

There are several models to evaluate intangibles at the country level and different ways to measure them. The paper offers comparative information about the models to aid in selection for managing intangibles at the country level.

Details

Journal of Intellectual Capital, vol. 14 no. 4
Type: Research Article
ISSN: 1469-1930

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Article

Eugénia Pedro, João Leitão and Helena Alves

For better mapping the path of intellectual capital (IC) research, the purpose of this paper is to selectively review empirical studies of IC published, and identify…

Abstract

Purpose

For better mapping the path of intellectual capital (IC) research, the purpose of this paper is to selectively review empirical studies of IC published, and identify theories, components and three dimensions of analysis: national IC (NIC), regional IC (RIC) and organizational IC (OIC).

Design/methodology/approach

The systematic literature review (SLR) subject to analysis is based on empirical studies made between 1960 and 2016, and focuses on three dimensions of analysis: NIC, RIC and OIC. Four research questions were designed, using the following databases, namely, Web of Science, Scopus and Google Scholar, for data collection purposes.

Findings

The SLR unveils a multidimensional taxonomy for measuring and classifying the type of IC applicable to the different levels of analysis and provides some recommendations for future studies of NIC, RIC and OIC, by outlining the need for clear definitions of components and measures of IC and identifying strengths, limitations and future research avenues.

Originality/value

In order to fill the gap found in the literature and the non-existence of a study clarifying the multiple dimensions of analysis of IC, this SLR makes a twofold, original contribution to the literature on management: providing an SLR of the main empirical studies dealing with different units of analysis; and identifying a multidimensional taxonomy for measuring and classifying the type of IC applicable to the different levels of analysis.

Details

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

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Article

Elena Shakina, Angel Barajas and Mariya Molodchik

The paper aims to explore factors of the low competitiveness of Russian companies assuming that the gap in the endowment of intangible resources is responsible for the gap…

Abstract

Purpose

The paper aims to explore factors of the low competitiveness of Russian companies assuming that the gap in the endowment of intangible resources is responsible for the gap in competitiveness.

Design/methodology/approach

The framework of resources-based view is used to examine causality between the resources used and competitiveness measured by economic value added (EVA). Controlling for the most relevant factors, the authors place an emphasis on those intangible resources that are considered in the literature as being the most critical for Russian companies when contending for global competitiveness: productivity, strategic long-term orientation of companies, quality of human capital, innovative behavior of companies, foreign investments and corporate networks. The data set of more than 1,000 Russian companies benchmarked to the data set of more than 1,600 European companies during a period of 10 years: 2004-2013 is analyzed to test the hypothesis put forward.

Findings

Causal effect of the gap in intangible endowment and competitiveness of Russian companies compared with European rivals is revealed. According to our analysis, gaps in productivity, strategy implementation, qualifications of the board of directors and company location play critical roles in the global competitiveness of Russian companies. Meanwhile, underinvestment in structural resources, such as enterprise resource planning (ERP) systems and other intangible assets, are considered positive factors that reduce gaps in EVA.

Originality/value

The paper introduces original approach for studying the gap in performance caused by the gap in used resources.

Details

Measuring Business Excellence, vol. 21 no. 1
Type: Research Article
ISSN: 1368-3047

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Article

Elena Shakina, Iuliia Naidenova and Angel Barajas

Focusing on managerial problems related to the measurement of intangibles, this paper develops and validates a hedonic-pricing methodology for the evaluation of the…

Abstract

Purpose

Focusing on managerial problems related to the measurement of intangibles, this paper develops and validates a hedonic-pricing methodology for the evaluation of the intangible resources of companies obtaining their shadow prices.

Design/methodology/approach

The paper adapts a hedonic-pricing methodology developed primarily for markets in real estate and secondhand cars to define how much intangibles may contribute to companies' market value. A certain calibration of the original tool has been developed to make this methodology appropriate for interpretation and practical use. The main advantage of this approach is that it allows for an evaluation of the shadow prices of intangible resources. These prices can be interpreted as the market value of the intangible resources which are not reflected on the balance sheet.

Findings

The results of this study demonstrate that hedonic pricing with a self-selection correction generates robust estimates. As one can see, the positive contribution of a high endowment of intangibles for all shadow prices is confirmed through estimations using two different techniques. Meanwhile, the negative effect of a low endowment is even more evident for the baseline model. This model shows consistent negative shadow prices for the majority of underinvested intangibles. Brands have the highest shadow prices in the introduced models; human capital, as measured by the qualification of top management and investments in employees, has likewise demonstrated high prices. However, most structural resources seem to be not reflected to a large degree in companies' market value.

Practical implications

This paper brings new opportunities to obtain the monetary value of intangible resources based on estimated market prices of a corporation's resource portfolio. These prices may be used for several purposes – for example, benchmarking for performance management, capital budgeting or knowledge-management practices. Moreover, by having methodological value, this study opens ways to evaluate any other intangibles which are not explicitly discussed in the empirical test of this particular study.

Originality/value

This study primarily contributes to the methodological advancement of evaluation of corporate intangible resources. It departs from the conventional hedonic-pricing mechanism to identify cogent estimates to intangibles in monetary terms. Importantly, this mechanism implies individual shadow prices for specific intangible resources which makes the contribution of this study unique for the existing literature, both within resource-based and value-based views.

Details

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

Keywords

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