Michael Litschka, Andreas Markom and Susanne Schunder
The purpose of this paper is to provide a quantitative assessment model for intellectual capital in companies.
Abstract
Purpose
The purpose of this paper is to provide a quantitative assessment model for intellectual capital in companies.
Design/methodology/approach
A brief historical review of former approaches to evaluate intellectual capital construction of a new formula for an intellectual capital value. A possible empirical survey of influence factors on intellectual capital is suggested. Both, taken together, are the grounding of an integrative management model for intellectual capital still to be developed.
Findings
Shows that a quantitative figure for intellectual capital can be found and that such a figure is needed to convince managers and the public of the usefulness of activities to promote intellectual (and especially human) capital.
Research limitations/implications
A quantitative measure can never picture the complete interrelations of organizational development, influence factors on intellectual capital, and performance of employees. The formula can only be a starting‐point for management and further research. Possible management tools are only touched on briefly.
Practical implications
Gives the manager a tool to argue his decisions regarding the promotion of human and intellectual capital. Managers talk about figures and often dislike purely philosophical arguments. Their awareness of the topic can be raised.
Originality/value
Even though there is a growing scientific body of quantitative models for measuring intellectual capital, this paper uses a new approach: the usage of approximation factors for motivation, commitment and job satisfaction in one formula.