The purpose of this paper is to tie together the insights from the body of research relating to economic complexity theory, structural holes, non-price based competition, and…
Abstract
Purpose
The purpose of this paper is to tie together the insights from the body of research relating to economic complexity theory, structural holes, non-price based competition, and knowledge management. The insights relating to generating national prosperity are synthesised through an intellectual capital lens.
Design/methodology/approach
The paper uses literature review combined with insights from an Australian project on state-based economic complexity.
Findings
The connectivist and autopoietic epistemological paradigms are found to be most aligned with the need to manage transformation between organisational and human resources that will achieve causal ambiguity and hence inimitability. This inimitability forms the basis for achieving non-price based competition and if there is a rich network of economic agents that, both individually and collectively through collaboration, have these characteristics a large share of the economy can operate on the basis of non-priced based competition. If all these agents have an export focus the economic complexity of the economy will be high, and likely increasing, which will enable both the creation and the appropriation of large amounts of value and hence result in increasing national prosperity.
Research limitations/implications
Findings are only relevant for OECD countries given the origins of the data used.
Practical implications
Managerial implications are outlined as are major implications for public policy.
Originality/value
This is the first time that these concepts are linked.
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The purpose of this paper is to report on an industry policy implementation case involving around 30 manufacturing firms, where the intellectual capital (IC) lens, and especially…
Abstract
Purpose
The purpose of this paper is to report on an industry policy implementation case involving around 30 manufacturing firms, where the intellectual capital (IC) lens, and especially the intellectual capital navigator (ICN) approach, was found to be very useful for evaluating alternative servitisation strategies. Servitisation is a form of business model innovation and as such involves restructuring the firm’s resource deployment system including its IC resources.
Design/methodology/approach
The ICN was one of several methods and themes used by a sample of manufacturing firms during a 12 month period. Data capture were through video filming, observation, and formal interviewing during and after the interventions.
Findings
The ICN is considered to be the third most valuable theme in a strategic and operational servitisation programme for manufacturing firms, primarily in the domain of effectiveness evaluation of alternative resource deployment strategies and as such should be one of the key dimensions in a business model template for manufacturing firms that aim to servitize. This research also illustrates the usefulness of the intellectual capital lens in the policy implementation process.
Research limitations/implications
The findings of this study is limited to the servitization process of SME manufacturing firms in an Anglo-Saxon operating environment which very rapidly have gone from low to high cost.
Originality/value
The development of service-oriented business models for manufacturing firms suffers due to traditional business model frameworks not having a high relevance for servitising manufacturing firm. Consequently it is important to understand the potential contribution that the IC lens through the ICN can make in the servitisation process.
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The provision of value, as a marketing issue, is receiving increasing attention from managers and scholars. This attention, in combination with strong calls for better…
Abstract
The provision of value, as a marketing issue, is receiving increasing attention from managers and scholars. This attention, in combination with strong calls for better quantification and stronger measures in marketing, has lead to increased interest in the assessment, quantified where possible, of the provision of value through buyer–seller relationships. This paper identifies dimensions of value provision through relationships in business markets with specific emphasis on the intangible aspects of value, which are important to long-term competitive advantage. The provision of value to the seller is the prime focus in this paper. The paper discusses the meaning of both tangible and intangible relationship value and the interplay between them and notes the importance of assessing the intangible part of the value, particularly the part which derives from the human aspects of the relationship. Despite their importance, the human aspects of relationships and their contribution to value is a sparse topic among researchers. The paper compares and evaluates potentially useful relationship and value conceptualizations. The paper discusses studies of relationship value and then outlines the results of a recent line of empirical research into the provision of value by a buyer to a seller that utilizes a framework synthesized from the intellectual capital literature. This recent research conceptualizes the potential for a seller's relationship with a buyer to provide intangible value to the seller in terms of, first, the resources available in the buyer and second, the capabilities of the buyer's boundary personnel to aid in facilitating the flow of those resources to the seller. The paper also includes the softer human aspects in the dimensions of value. These latter aspects are important to a full assessment of value. The paper concludes with a discussion of aspects of intangible relationship value that need further elucidation and will thus provide opportunities for future research.
In the 1990s, von Krogh, Roos, and Slocum (1994) and Venzin, von Krogh, and Roos (1998) began discussions centered around epistemology and knowledge management, focusing mainly on…
Abstract
In the 1990s, von Krogh, Roos, and Slocum (1994) and Venzin, von Krogh, and Roos (1998) began discussions centered around epistemology and knowledge management, focusing mainly on the varied sources and backgrounds for knowledge management. Since 2000, we have seen a much wider debate on several issues that are related to the development of a knowledge economy. The main task became the establishing of a conceptual framework for further discussion of epistemological categories, using three keywords: cognitivism, connectionism, and autopoiesis. One objective of this book is to analyze the progression to a more knowledge-based economy by linking these keyword perspectives together, and the intention of this chapter is to present a fundament for these epistemological discussions.
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R.J. Burgman, G. Roos, J.J. Ballow and R.J. Thomas
The purpose of this paper is to describe the logic and processes for identifying, measuring and managing intellectual capital resources along side traditional economic resources…
Abstract
Purpose
The purpose of this paper is to describe the logic and processes for identifying, measuring and managing intellectual capital resources along side traditional economic resources to achieve sustainable outcomes valued by investors.
Design/methodology/approach
The approach is founded on classical finance theory and draws on and multi‐attribute value theory, system dynamics and the strands of thought known as intellectual capital in order to produce a grounded framework that both produces reliable results as well as achieves acceptance in the financial community.
Findings
The findings from this approach, the FVMT Methodology, provide a comprehensive management framework that is agnostic as to the form of resources being utilized and the activities that are involved in the transformation of one resource form into another on the way to achieving sustainable outcomes valued by investors.
Research limitations/implications
Whilst the approach has proven to work well the limitations are that it requires both effort and access to market makers.
Practical implications
The implications is that for the first time an approach is now available that provides the same rigor for managing the future value component of a firm's share price as there already exist for managing the current value component of the firm's share price. This means that managers can both reduce the volatility surrounding their share price as well as predict the value outcomes of a given set of actions.
Originality/value
The authors believe that this is the first presentation of a methodology grounded in classical finance theory for the managing of the future value component of a firm's share price.
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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…
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.
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Michael F. Kennedy and Michael M. Beyerlein
Intellectual capital (IC) and social capital (SC), as forms of intangible value in organizations, are crucial assets in today's volatile business environment. Efforts to retain…
Abstract
Intellectual capital (IC) and social capital (SC), as forms of intangible value in organizations, are crucial assets in today's volatile business environment. Efforts to retain and develop these intangibles are becoming more deliberate and disciplined. However, organizations fail to recognize the relationship between organizational distress and the loss and/or reduction of intangible value. The loss of intangible value may potentially impact an organization with equal or greater damage than the loss of more tangible value. IC and SC generate many outcomes beneficial to the individual and the organization. These benefits are reduced when stress of employees becomes excessive and damaging. The relationship between the health of an organization and the degree of impact of distress serves as a lingering threat to organizational financial resources. Managers must build upon the growing knowledge from research and practice to help organizations account for the costs of organizational distress, translate the importance of intangible value into tangible terms, and garner support for developing IC and SC to obtain business objectives. Deliberate and disciplined effort to build collaborative capital can facilitate the growth of IC and SC which minimize the damage of organizational distress.
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 theories…
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.
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Henri Hussinki, Paavo Ritala, Mika Vanhala and Aino Kianto
The purpose of this paper is to examine the association of different configurations of intellectual capital (IC) and knowledge management practices (KMP) with firm performance. Do…
Abstract
Purpose
The purpose of this paper is to examine the association of different configurations of intellectual capital (IC) and knowledge management practices (KMP) with firm performance. Do firms with different profiles concerning their overall levels of IC and KMP differ in terms of innovation and market performance?
Design/methodology/approach
First, the firms were distributed into four distinct profiles based on their overall level of IC and utilization of KMP. Then, the four different IC/KMP profiles were evaluated with regard to their innovation and market performance.
Findings
Consistent with the extant research, this study finds that the firms characterized with high levels of IC and high use of KMP are likely to outperform the firms with low overall levels of IC and KMP. On more interesting note, this study also demonstrates that firms characterized with high level of IC but only low utilization of KMP can match the innovation performance of the firms with high levels of IC and KMP.
Practical implications
While the results indicate that the level of IC alone could predict the innovation potential of the firm, the firms should use KMP to leverage the IC and to capitalize the knowledge potential. This result shows the merits of letting innovation flourish without strict managerial control, while pinpointing the relevance of knowledge management (KM) in exploitation of IC.
Originality/value
As one of the first attempts to merge the IC and KM approaches to find out which configurations could influence firm performance outcomes, this study provides the research community with valuable insights and sets the tone for further discussion.