Mariya Anatolievna Molodchik, Elena Anatolievna Shakina and Angel Barajas
The purpose of this paper is to explore the plausibility of six elements of IC and justify the measurement ability of a set of indicators based on publicly available data for each…
Abstract
Purpose
The purpose of this paper is to explore the plausibility of six elements of IC and justify the measurement ability of a set of indicators based on publicly available data for each of the proposed element in order to provide tools to managers for their decision-making process in knowledge management (KM).
Design/methodology/approach
Core company's intangibles are combined into six intellectual capital (IC) elements that appear after the division of each of the traditional components (human, structural and relational capital (RC)). The human capital includes management and human resources capabilities (HRC). Structural capital is divided into innovation and internal process capabilities (IPC). RC contains networking capabilities and customer loyalty. In drawing on the relevant literature each element is described through a set of indicators collected from publicly available data. The validity of proposed IC model is justified through structural equation modeling. Each element is tested on a sample of more than 1,650 listed European companies over the period of 2004-2011.
Findings
The study gives empirical support of three component IC structure and its decomposition into second level. The findings reveal that implementation of KM plays a significant role for HRC as well as for IPC.
Research limitations/implications
The analysis was conducted for a particular sample that may restrict the conclusions.
Practical implications
The proposed measurements for intangibles can be applied by any company for benchmarking and comparative analysis in KM.
Originality/value
The study provides empirical justification of metrics for intangibles allowing a better route in an economy driven by knowledge.