Hwan‐Yann Su, Shih‐Chieh Fang and Chaur‐Shiuh Young
The purpose of this article is to explore and illustrate how intellectual capital transparency through intellectual capital reporting can enable relationship transparency and…
Abstract
Purpose
The purpose of this article is to explore and illustrate how intellectual capital transparency through intellectual capital reporting can enable relationship transparency and enhance partnership.
Design/methodology/approach
A case study research method is adopted to explore and illustrate the key research issues on a single case.
Findings
Three elements of intellectual capital transparency specific for the enhancement of business‐to‐business partnerships are proposed: the transparency of a focal business vision, value proposition, strategies and supportive knowledge resources; the transparency of information perceived as being relevant by its partners; and the transparency of relationship atmosphere. Intellectual capital transparency through the suggested intellectual capital reporting framework is very suitable for enabling holistic understanding of and enhancing partnership.
Practical implications
Businesses may benefit from making transparent their intellectual capital information to key partners because this strategy demonstrates honesty, sincerity and professionalism, aside from enabling the transparency of their totality and relationship atmosphere. With no legal obligation, transparency of intellectual capital information should be highly valued by partners, because this enables partners to more fully understand their relationships and how they can benefit from them as well as demonstrating willingness to honestly face facts and keep important indicators on track. As a result, partners should be more satisfied with their partnerships, and more willing to continue and enhance them.
Originality/value
This study proposes and illustrates how intellectual capital transparency can be used for partnership enhancement through combining limited research on relationship transparency with intellectual capital theories and thus extends the extant relationship transparency literature.
Details
Keywords
Hwan‐Yann Su, Shih‐Chieh Fang and Chaur‐Shiuh Young
This paper aims to explore the intellectual capital (IC) information needed to enable relationship transparency and the influences of relationship transparency on supply chain…
Abstract
Purpose
This paper aims to explore the intellectual capital (IC) information needed to enable relationship transparency and the influences of relationship transparency on supply chain partnerships.
Design/methodology/approach
A field experiment research design is adopted to examine whether IC information facilitates relationship transparency with partners in the supply chain of a focal firm and contributes to supply chain partnership enhancement.
Findings
This study identifies an IC transparency framework consisting of two components – the transparency of important business characteristics and the transparency of relationship atmosphere – for guiding the provision of IC information and enabling relationship transparency. The provision of the focal firm's IC information to partners in its supply chain significantly increases partner's trust, satisfaction and commitment towards their relationships. Thus the results suggest that relationship transparency derived from IC transparency enhances supply chain partnerships. Relationship transparency facilitates the focal firm to develop and integrate its supply chain through improved understanding pertaining to itself and its relationships with partners in its supply chain. Thus, this transparency of the focal firm with partners constitutes a flexible and attainable alternative to managing the relationships for its supply chain.
Research limitations/implications
This study suggests that the field experiment research design allows researchers to effectively observe IC transparency's influences on supply chain partnership enhancement.
Practical implications
For firms increasingly interconnected with supply chain models of competition, this study proposes a practical IC transparency framework specific for guiding the provision of IC information to enable relationship transparency and enhance supply chain partnerships.
Originality/value
This study combines limited research on relationship transparency with IC theories to propose an IC transparency framework for enhancing supplier relationship management and represents a first step to examining the quantitative effects of IC transparency in the context of supply chain partners.
Details
Keywords
This review seeks to consider the use of intellectual capital reporting to strengthen business‐to‐business partnerships.
Abstract
Purpose
This review seeks to consider the use of intellectual capital reporting to strengthen business‐to‐business partnerships.
Design/methodology/approach
The piece uses a case study of QST, a quoted Taiwanese multinational in the fastener industry producing C‐class industrial components. It shows how the company increased partner trust through information transparency.
Findings
How much do the firms you do business with know about you? Most publicly available information about any company is patchy and piecemeal – it comes in many forms, is held in different places and – of course – does not include sensitive, confidential items that competitors would dearly like to know. But if your suppliers and customers had more information, would they do more business with you? If you made a point of giving them the information they would like to have in one regular report, would they trust the company more, or have greater confidence in how you manage your partnership with them?
Practical implications
The piece describes the way one company developed an intellectual capital report. It explains how the attitudes of business partners may be influenced by giving them the information they feel they need about the company.
Social implications
The review draws attention to the need for trust in the development of long‐term business‐to‐business relationships.
Originality/value
The review highlights the importance of relationship transparency as companies become increasingly interconnected.