S. Pike, L. Fernström and G. Roos
The purpose of this paper is to demonstrate how the ICS intellectual capital methodology was developed starting from the underpinning academic theory.
Abstract
Purpose
The purpose of this paper is to demonstrate how the ICS intellectual capital methodology was developed starting from the underpinning academic theory.
Design/methodology/approach
The approach is founded upon a number of theoretical strands. The basic intellectual capital approach is based on a development of the resource based theory of the firm. Most intellectual capital approaches have problems with meaningful measurement. ICS addresses the valuation of intellectual capital resources by using axiology and multi‐attribute value theory to produce a valuation framework and measurement theory to ensure that the results are reliable.
Findings
The ICS intellectual capital approach generates navigators (maps) of how resources are used in companies which have proven to be very useful. It has also demonstrated the value of deeper analysis of the intellectual capital resources. The measurement part, which is often used independently (known as the Conjoint Value Hierarchy (CVH), is shown as a powerful aid to decision making as well as to more straightforward valuation.
Research limitations/implications
The limitations are that the navigator and its associated analyses are non‐rigorous while the CVH is rigorous, transparent and auditable. This mismatch can lead to problem and the challenge is to integrate them.
Originality/value
While parts have been reported previously, this paper is the first integrated review of ICS’ methodology.
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Constantin Bratianu, Alexeis Garcia-Perez, Francesca Dal Mas and Denise Bedford
Constantin Bratianu, Alexeis Garcia-Perez, Francesca Dal Mas and Denise Bedford
Suresh Cuganesan and John C. Dumay
The first aim of this paper is to present the methods developed by one of the co‐authors to render visible the complexity of intellectual capital (IC). These were developed to…
Abstract
Purpose
The first aim of this paper is to present the methods developed by one of the co‐authors to render visible the complexity of intellectual capital (IC). These were developed to make relationships between IC elements and value creation accessible to managers seeking to act on IC. The second aim of the paper is to explore the ability of visualisation techniques to inscribe the complexity of IC. This is pursued through a process of reflecting on the experiences of “being involved” in the production of IC visuals.
Design/methodology/approach
The study details the methods utilised in a case study of a shared service centre of a financial services organisation and presents a reflective analysis using the Latourian notion of inscriptions.
Findings
In conducting its reflective analysis, the paper traces the various translations undergone by the inscriptions of IC, with the end result of these movements being a visual meta‐narrative connecting the various IC elements to one another as well as dimensions of IC value creation.
Originality/value
The paper presents a novel examination of visualisations of IC as might be used within firms for the purposes of resource mobilisation and managerialist intervention.
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Marco Montemari and Christian Nielsen
– The purpose of this paper is to investigate the measurement and the management of the dynamic aspects of intellectual capital through the use of causal mapping.
Abstract
Purpose
The purpose of this paper is to investigate the measurement and the management of the dynamic aspects of intellectual capital through the use of causal mapping.
Design/methodology/approach
The paper details the methods utilized in a single in-depth case study of a network-based business model.
Findings
The paper illustrates how causal mapping can be used to understand how intellectual capital really works in the specific business context in which it is deployed. Moreover, exploiting the causal map as a platform for extracting a set of indicators can provide information on the length of the lag and the persistence of the effects of managerial actions. In addition, it can signal when and how to refine and update the causal map. The combination of these factors can potentially support the dynamic measurement and management of intellectual capital.
Research limitations/implications
The paper presented has two main limitations. First, the use of a single case study to provide in-depth and rich data limits the generalizability of the observations. Second, the proposed approach has not been implemented in practice. Future research opportunities include interventionist-type case studies that put the causal mapping approach into practice.
Practical implications
The paper highlights the need to build causal maps to enhance the measurement and management of intellectual capital, which is dynamic in nature. As a consequence, this tool can be useful for monitoring the intangibles of companies and networks and to better understand the contribution their intellectual capital makes to the value creation process.
Originality/value
The paper openly questions the measurement of the fluid and dynamic aspects of intellectual capital. It proposes a tool for governing these aspects and it suggests that even the existing intellectual capital measurement systems can improve their usefulness by including these dimensions. So, a shift in intellectual capital measurement is prescribed.
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Juan-Gabriel Cegarra-Navarro, Anthony K.P. Wensley, Alexeis Garcia-Perez and Antonio Sotos-Villarejo
Peripheral vision (PV) or side vision refers to that which is visible to the eye while being outside of its central area of focus. PV enables organisms to detect movement and…
Abstract
Purpose
Peripheral vision (PV) or side vision refers to that which is visible to the eye while being outside of its central area of focus. PV enables organisms to detect movement and potential threats in their environment. The purpose of this paper is to contribute to the understanding of the concept of PV in the business environment, as well as its relationship with knowledge structures in the form of technology knowledge and absorptive capacity. The relative importance and significance of technology knowledge and absorptive capacity as mediators between “relational capital” (RC) and “PV” are also examined.
Design/methodology/approach
The paper reports an empirical investigation involving 125 employees from the banking sector. Data collected was statistically analysed using PLS-graph software version 03.00. Results of the data analysis show relationships uncovered in the existing literature.
Findings
The creation of RC by employees from the banking sector relies to a large extent on managers’ ability to perceive, analyse and understand activity that is often outside the focus of their attention.
Practical implications
Managers who explicitly value their RC have a wider vision of their environment. In turn, a wider understanding of the activity in the environment drives the strengthening of the organisation and its RC.
Originality/value
PV can have a direct impact on the organisation’s appetite for the development of its technology knowledge base, thus contributing to enhance the firm’s absorptive capacity as well as the extent, quality and value of its RC.
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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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This paper investigates the inter‐relationships between different components of intellectual capital (IC) and value creation.
Abstract
Purpose
This paper investigates the inter‐relationships between different components of intellectual capital (IC) and value creation.
Design/methodology/approach
A single in‐depth case‐study of an innovation project within an Australian financial services firm (“TransactCo”) is conducted.
Findings
The actual IC inter‐relationships and transformations that occurred were different to those originally envisaged by organisational participants, and reflected choices about IC deployment and transformation. Considering IC‐in‐action, inter‐relationships between different IC elements and value creation were found to be pluralistic and temporally contingent.
Research limitations/implications
The limitations of the paper are as follows: the use of a single case study design limits its generalisability; the empirical analyses was conducted at a project‐level and may not be transferable to other levels of analyses; and a narrow conception of value was utilised, grounded in economic value and shareholder value terms. Extending the analyses conducted to other settings represent future research opportunities.
Originality/value
Theoretically, in contrast to prior empirical studies which depict IC inter‐relationships as primarily consisting of multiple relations of cause‐and‐effect in a one‐to‐one or one‐to‐many manner, the narrative presented herein shows how IC resources transform each other, often in a pluralistic and fluid manner. In addition, the paper calls for a perspective on IC‐in‐action. Specifically, more narrative on the use of IC and its deployment should be incorporated within extant models to highlight the contingent and precarious IC and value creation relationship. Firms that fail to consider this adequately may face unintended value destruction consequences similar to those observed at TransactCo.