Manfred Bornemann, Kay Alwert and Markus Will
This article reports on the background, the conceptual ideas and the lessons learned from over more than 20 years of IC Statements and Management with a country focus on Germany…
Abstract
Purpose
This article reports on the background, the conceptual ideas and the lessons learned from over more than 20 years of IC Statements and Management with a country focus on Germany and some international developments. It calls for an integrated management approach for IC and offers case study evidence on how to accomplish this quest.
Design/methodology/approach
Report on the German initiative “Intellectual Capital Statement made in Germany” (ICS m.i.G.). A brief review of the literature describes the background and theoretical foundation of the German IC method. A short description of the method is followed by four detailed case studies to illustrate long-term impact of IC management in very different organizations. A discussion of Lessons Learned from more than 200 implementations and an outlook on current and future developments finalizes the article.
Findings
IC Statements made in Germany (ICS m.i.G.) was successful in providing a framework to systematically identify IC, evaluate the status quo of IC relative to the strategic requirements, visualize interdependencies of IC, business processes and business results as well as to connect IC reporting with internal management routines and external communication. However, ICS is not an insulated method but delivers the maximum benefit when integrated with strategy development, strategy implementation, business process optimization accompanied by change management routines. Strong ties to human resource management, information technology departments, quality management, research and development teams as well as business operations as the core of an organization help to yield the most for ICS m.i.G. Over time, the focus of managing IC changes and maturity leads to deutero learning.
Practical implications
ICS m.i.G. proved easy to apply, cost efficient for SMEs, larger corporations and networks. It helps to better accomplish their objectives and to adjust their business models. The guidelines in German and English as well as a software application released were downloaded more than 100,000 times. A certification process based on a three-tier training module is available and was successfully completed by more than 400 practitioners. ICS m.i.G. is supporting current standards of knowledge management, such as ISO 9001, ISO 30401 or DIN SPEC PAS 91443 and therefore will most likely have a continuing impact on knowledge-based value creation.
Originality/value
This paper reports lessons learned from the country-wide IC initiative in Germany over the last 20 years initiated and supported by the authors. Several elements of the method have been published over time, but so far no comprehensive view on Lessons Learned had been published.
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Manfred Bornemann and Martin Sammer
So far, a systematic and comprehensive assessment tool to prioritize organizational development activities, especially in the currently intensely discussed domain of knowledge…
Abstract
So far, a systematic and comprehensive assessment tool to prioritize organizational development activities, especially in the currently intensely discussed domain of knowledge management is not available in the literature. Utilizing the here proposed methodology, which is derived from a four dimensional system theory based model on knowledge utilization within an organization, managerial decision makers save time and money in the early process of implementation of (pilot) knowledge management projects by prioritizing critical actions out of several options right from the beginning. The methodology stresses four levels of potential intervention, starting with the strategy focused target level, next a knowledge level covering all knowledge workers of an organization, then an action level focusing on operations and processes and finally a data level with the explicitly available stock of (digital) resources. All levels are discussed in detail. These levels are complemented by categories that help to address the organizational entities of the individual, the communication and interaction dependent team and the organization. Additionally these categories are expanded to include the corporate environment as well. By applying the resulting matrix of four levels to organizational development activities with special focus on knowledge management supporting activities, a comprehensive methodology to prioritize those development options is suggested. The methodology is illustrated by the example of the innovation process which is an appropriate starting point to improve the organizational excellence in terms of knowledge and learning.
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Kay Alwert, Manfred Bornemann and Markus Will
Small and medium‐sized companies (SMEs) have started to generate intellectual capital (IC) reports in order to enhance their management and corporate reporting. While the impact…
Abstract
Purpose
Small and medium‐sized companies (SMEs) have started to generate intellectual capital (IC) reports in order to enhance their management and corporate reporting. While the impact of a better management is quite clear, it is still unclear if an IC report has any impact on the rating of a company. The aim of this paper is to determine whether intellectual capital reports of SMEs generate any impact on the valuation behavior of analysts.
Design/methodology/approach
A test design was developed which comprised a literature review, a brain trust with financial experts, a quantitative survey, and an experiment with analysts based on two case studies.
Findings
If some requirements about structure and content of an IC report are fulfilled, it contributes to a more homogeneous rating than a rating based solely on information from financial reporting. Therefore, intellectual capital reports reduce risks for both investors/banks and SMEs.
Research limitations/implications
The research is based solely on German entities. It focuses on SMEs and their relevant capital market partners, which are banks. The results of the study indicate that also international analysts and companies could profit from additional information about IC.
Practical implications
The results of the study can be used to further develop and adapt IC reports to complement annual reporting according to analysts' requirements.
Originality/value
The paper helps to cover a well‐documented information need of companies that want to communicate their IC to the capital market and do not know how and what kind of impact can be expected.
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Manfred Bornemann and Roswitha Wiedenhofer
The purpose of this paper is to apply the concept of Intellectual Capital to assess intangible resources as crucial for the quality of educational processes. It identifies…
Abstract
Purpose
The purpose of this paper is to apply the concept of Intellectual Capital to assess intangible resources as crucial for the quality of educational processes. It identifies patterns of interdependence between drivers of Intellectual Capital and generic processes of educational institutions as a prototype study in Austria. Four levels of education are analysed and related to each other in order to identify the need to differentiate drivers of Intellectual Capital.
Design/methodology/approach
Educational institutions are typically regulated by governmental procedures and do not follow entrepreneurial management models. This paper suggests the assumption of a value chain of schools with the student as a significant customer as well as the object of intervention. Experiences from the application of Intellectual Capital assessment in value chains of the automotive industry are transferred to education. The methodology of “Wissensbilanz – made in Germany” is applied in action research-oriented prototypes.
Findings
Prioritizing scarce resources and systematically monitoring intangible assets in public as well as privately management educational intuitions contributes to economic improvement and better accomplishment of strategic objectives.
Practical implications
Applying methodologies for Intellectual Capital reporting in educational institutions and integrating the management of these resources along the value chain of education seems to be very beneficial not only for ministries of education but for de-central decision makers as well.
Originality/value
Austria officially implemented the legal obligation for Intellectual Capital reporting for universities in 2007. Up to date, no test on the usefulness of a comprehensive Intellectual Capital assessment in educational institutions was reported. Based on data from 12 case studies collected over two years, preliminary insights are reported.
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Manfred Bornemann and Kay Alwert
This paper seeks to describe a methodology for intellectual capital reporting which was successfully tested in Germany. Special focus is on developing a short list of IC drivers…
Abstract
Purpose
This paper seeks to describe a methodology for intellectual capital reporting which was successfully tested in Germany. Special focus is on developing a short list of IC drivers for urgent management intervention.
Design/methodology/approach
Building on established self‐assessment methodologies from quality management and concepts of system dynamics, an action research design was applied to develop an intellectual capital reporting framework.
Findings
It is possible to identify and to assess intellectual capital drivers for corporate results and to prioritize them according to marginal economic contribution. Based on concepts from system dynamics, group learning processes and organizational learning processes are stimulated. Investing scarce resources in specific drivers of intellectual capital with high impact on the organization and additional high levels of managerial control supports long‐term performance.
Research limitations/implications
The research builds on self‐organizing principles; the quality of intellectual capital assessment thus depends massively on the rigour of the team involved. Comparability of assessments is limited, as the standard reference is the organization's strategy.
Practical implications
The suggested methodology builds heavily on methods already established in SMEs and is compatible with general management approaches. It is economical by design and delivers insight into the functioning of the organization as well as insights on future fields for management intervention.
Originality/value
This methodology combines two established concepts of self‐assessment and system analysis and applies them to intellectual capital in order to resolve the decision problem of allocating funds based on economic efficiency and impact.
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John Dumay, James Guthrie and Pina Puntillo
The purpose of this paper is to present a structured literature review of the public sector intellectual capital (IC) literature. It is, in part, motivated by a recent review of…
Abstract
Purpose
The purpose of this paper is to present a structured literature review of the public sector intellectual capital (IC) literature. It is, in part, motivated by a recent review of the IC literature by Guthrie et al. (2012, p. 74), who found that the public sector is one of the least addressed areas of IC research.
Design/methodology/approach
This paper presents a structured literature review of public sector IC articles that is as up to date as possible. The authors use and update the dataset from Guthrie et al. (2012) to include another five plus years of data, including seven articles appearing in this special issue.
Findings
The public sector IC has a primary research focus on central government and central government agencies, education (especially universities), Europe (especially Italy and Spain) and empirical research using case studies mainly investigating management control and strategy. It appears public sector IC researchers are firmly entrenched in performative third-stage research, investigating “how” IC works in organisations rather than offering normative solutions.
Research limitations/implications
Three areas offered as a way of forwarding public sector IC research. First, there is a need to expand public sector IC research from beyond the confines of education (university) research. There is also an opportunity for a study to synthesise the findings. Second, there is also a need for more longitudinal research in public sector IC because IC is not an event, but a journey. Third, there is an opportunity for researchers to undertake empirical research with organisations to develop and test IC frameworks and models in specific public sector contexts.
Practical implications
The authors call for researchers to consider helping public sector practitioners implement IC frameworks and models through interventionist research. In keeping with the performative third-stage IC research agenda, interventionist research makes it possible for academic researchers to act as a catalyst for implementing IC frameworks and models in practice.
Originality/value
This paper is a must read for IC researchers wanting to embark on public sector research. The paper outlines how public sector IC research has developed, offers critique and outlines future opportunities for research that has potential impact, rather than concentrating on already well-researched contexts.