A review on intellectual capital concepts as a base for measuring intangible assets of collaborative networks

[EN] This work presents a revision of the main definition and significances of the term Intellectual Capital, as it is an important issue of study. Once the main scientific works related to Intellectual Capital are presented and their main contributions highlighted, this work shows how it has been attempted to measure the Intellectual Capital at both individual enterprises and collaborative networks, as a source of meaningful information to make decisions. The paper evidences the lack of works that have successfully dealt with measuring Intellectual Capital at the collaborative networks level, highlighting the main barriers and what a proper measuring framework should address at this level.Rodríguez Rodríguez, R.; Alfaro Saiz, JJ.; Verdecho Sáez, MJ. (2011). A review on intellectual capital concepts as a base for measuring intangible assets of collaborative networks. IFIP Advances in Information and Communication Technology. 362:41-47. doi:10.1007/978-3-642-23330-2_5S4147362Penrose, E.T.: The theory of the growth of the firm. John Wiley, New York (1959)Edvinsson, L., Malone, M.S.: IC: the Proven Way to Establish Your Company’s Real Value by Measuring Its Hidden Values. Piatkus, London (1997)Sveiby, K.E.: The New Organizational Wealth: Managing & Measuring Knowledge-Based Assets. Berrett-Koehler Publishers, Inc., San Francisco (1997)MERITUM Guidelines. Guidelines for Managing and Reporting on Intangibles, Madrid (2002)International Accounting Standards Board (IASB). Intangible Assets, International Accounting Standards No. 38 revised. IASB, London (2004)Marr, B.: Perspectives on IC: Multidisciplinary Insights into Management, Measurement, and Reporting. Elsevier, Boston (2005)Hall, R.: The strategic analysis of intangible resources. Strategic Management Journal 2, 135–137 (1992)Edvinsson, L., Sullivan, P.H.: Developing a model for managing intellectual capital. European Management Journal 14, 356–365 (1996)Brooking, A.: IC: Core Assets for the Third Millennium Enterprise. Thompson Business Press, London (1996)Roos, J., Roos, G., Dragonetti, N.C., Edvinsson, L.: IC: Navigating the New Business Landscape. Macmillan, London (1997)Stewart, T.A.: IC: The New Wealth of Organisations. Doubleday/Currency, New York (1997)Bontis, N., Dragonetti, N.C., Jacobson, K., Roos, G.: The knowledge toolbox: a review of the tools available to measure and manage intangible resources. European Management Journal 17, 391–402 (1999)Kannan, G., Aulbur, W.G.: IC: Measurement effectiveness. Journal of IC 5, 389–413 (2004)Nordika Project. Measuring and Reporting IC: Experiences, Issues, and Prospects. OECD, Paris (2002)Kaplan, R.S., Norton, D.P.: The Balanced Scorecard – Measures that Drive Performance. Harvard Business Review, 71–79 (January/February 1992)Lynch, R.L., Cross, K.F.: Measure Up! The Essential Guide to Measuring Business Performance. Mandarin, London (1991)Kaplan, R.S., Norton, D.P.: Measuring the Strategic Readiness of Intangible Assets. Harvard Business Review 82, 167–176 (2004)Alfaro Saiz, J.J., Rodriguez-Rodriguez, R., Ortiz Bas, A., Verdecho, M.J.: An information architecture for a performance management framework by collaborating SMEs. Computers in Industry 61, 676–685 (2010)Busi, M., Bititci, U.S.: Collaborative performance management: present gaps and future research. International Journal of Productivity and Performance Management 55, 7–25 (2006)Angerhofer, B.J., Angelides, M.C.: A model and a performance measurement system for collaborative supply chains. Decision Support Systems 42, 283–301 (2006)Gaiardelli, P., Saccani, N., Songini, L.: Performance measurement of the after-sales service network – Evidence from the automotive industry. Computers in Industry 58, 698–708 (2007)Gruat, F.A., La Forme, V., Campagne, J.P.: A Framework to analyse Collaborative Performance. Computers in Industry 58, 687–697 (2007

An integrated core competence evaluation framework for portfolio management in the oil industry

Drawing upon resource-based theory, this paper presents a core competence evaluation framework for managing the competence portfolio of an oil company. It introduces a network typology to illustrate how to form different types of strategic alliance relations with partnering firms to manage and grow the competence portfolio. A framework is tested using a case study approach involving face-to-face structured interviews. We identified purchasing, refining and sales and marketing as strong candidates to be the core competencies. However, despite the company's core business of refining oil, the core competencies were identified to be their research and development and performance management (PM) capabilities. We further provide a procedure to determine different kinds of physical, intellectual and cultural resources making a dominant impact on company's competence portfolio. In addition, we provide a comprehensive set of guidelines on how to develop core competence further by forging a partnership alliance choosing an appropriate network topology

Fair value on commons-based intellectual property assets: Lessons of an estimation over Linux kernel.

Open source describes practices in production and development that promote access to the end product's source materials, spreading development burden amongst individuals and companies. This model has resulted in a large and efficient ecosystem and unheralded software innovation, freely available to society. Open source methods are also increasingly being applied in other fields of endeavour, such as biotechnology or cultural production. But under financial reporting framework, general volunteer activity is not reflected on financial statements. As a result, there is not value of volunteer contributions and there is also no single source for cost estimates of how much it has taken to develop an open source technology. This volunteer activity encloses not only individuals but corporations developing and contributing open source products. Standard methodology for reporting open source asset valuation is needed and must include value creation from the perspective of the different stakeholders.FLOSS, commons, accounting standards, financial reporting

Strategic Knowledge Measurement and Management

Knowledge and intellectual capital are now recognized as vital resources for organizational survival and competitive advantage. A vast array of knowledge measures has evolved, spanning many disciplines. This chapter reviews knowledge measures focusing on groups of individuals (such as teams, business and organizations), as they reflect the stock or flow of knowledge, as well as enabling processes that enhance knowledge stocks and flows. The chapter emphasizes the importance of organizational value chains, pivotal talent pools and the link between knowledge and competitive success, in understanding the significance of today’s knowledge measures, and opportunities for future research and practice to enhance them

Developing a dominant logic of strategic innovation

Purpose: This paper aims to lay the foundations to develop a dominant logic and a common thematic framework of strategic innovation (SI) and to encourage consensus over the field’s core foundation of main themes. Design/methodology/approach: The paper explores the intersection between the constituent fields of strategic management and innovation management through a concept mapping process. The paper categorizes the main themes and search for common ground in order to develop the core thematic framework of SI. The paper looks at the sub-themes of SI in published research and develops a more detailed framework. The conceptual categories derived from the process are then placed in a logical sequence according to how they occur in practice or in the order of how the concepts develop from one other. Findings: The results yield seven main themes that form the main taxonomy of SI: types of SI, environmental analysis of SI, SI planning, enabling SI, collaborative networks, managing knowledge, and strategic outcomes. Research limitations/implications: The new thematic framework the paper is proposing for SI remains preliminary in nature and would need to be tried and tested by researchers and practitioners in order to gain acceptability. Academic rigor and methodological structure are not sufficient to determine whether our conceptual framework will become widely diffused in academia and industry. It would have to pass through an emergent, evolutionary process of selection, adoption and an inevitable degree of change and adaptation, just like any other innovation. Practical implications: The practical implications concern the production of instructive material and the application of strategic management initiatives in industry. The proposed themes and sub-themes can serve as a logical framework to develop and update publications, which have been instrumental in their own right to shape the field. The paper also provides a checklist of potential research projects in SI, which will improve and strengthen the field. The new framework provides a comprehensive checklist of strategic management initiatives that will help industry to initiate, plan and execute effective innovation strategies. Originality/value: The concept mapping of the themes of SI yields a new dominant logic, which will influence the evolution of the field and its relevance to both academia and industry

Knowledge management and communities of practice in the private sector: lessons for modernising the National Health Service in England and Wales

The National Health Service (NHS) in England and Wales has embarked upon a radical and farreaching programme of change and reform. However, to date the results of organizational quality and service improvement initiatives in the public sector have been mixed, if not to say disappointing, with anticipated gains often failing to materialize or to be sustained in the longer term. This paper draws on the authors' recent extensive research into one of the principal methodologies for bringing about the sought after step change in the quality of health care in England and Wales. It explores how private sector knowledge management (KM) concepts and practices might contribute to the further development of public sector quality improvement initiatives in general and to the reform of the NHS in particular. Our analysis suggests there have been a number of problems and challenges in practice, not least a considerable naïvety around the issue of knowledge transfer and 'knowledge into practice' within health care organizations. We suggest four broad areas for possible development which also have important implications for other public sector organizations

The role of intellectual capital in organisational value creation: An application of a theoretical model to two case studies

This thesis was submitted for the degree of Doctor of Philosophy and awarded by Brunel University, 17/06/2004.The research in this thesis focuses on the intangible resources of organisations. Intangible resources include an organisation's collective knowledge and learning, leadership talent, the values that shape its culture, routines and processes and the collaborative relationships. These intangible resources are known as intellectual capital (IC) because they support organisational activity along with financial and physical capital. Previous research has classified IC into three principle components of human, organisational and relationship capital and has established a link between IC and organisational value. Recent studies have also emphasised the notion of interrelationships between the three components of intellectual capital in developing capabilities that drive value creation. Yet it is often unclear how the various elements interrelate to one another to generate organisational value. This thesis investigates how IC contributes to organisational value creation. Central to this research is the examination of the mechanisms through which IC factors are integrated within organisations in order to develop capabilities. As innovation is widely agreed to be a determinant of organisational value creation, this research adapted and extended the model of intelligence and innovation proposed by Glynn (1996) to develop a comprehensive theoretical framework for empirically examining the synergistic effects of IC. Building upon four major theoretical streams: resource-based view of the firm, innovation theory, intellectual capital theory and organisational capabilities, this research has elaborated the ideas and constructs presented in the original model and de-contextualised them to an intellectual capital perspective. A qualitative, interpretive approach was applied to two in-depth case studies for investigating the intangible resource-base of two knowledge intensive companies. The results were then expanded to a cross-case context in order to compare and contrast the value creating potential of the IC factors. The findings of this research are presented in the form of a descriptive framework that classifies the characteristics of a value creating process. The purpose of the framework is to provide pointers for identifying IC resources and developing capabilities in a way that provides an organisation with sustainable competitive advantage, and thereby, value

Human Resources Strategy: The Era of Our Ways

The purpose of this chapter is to discuss some of the main features and trends in human resources (HR) strategy. Inasmuch as people are among the most important resources available to firms, one could argue that HR strategy should be central to any debate about how firms achieve competitive advantage. But this “people are our most important asset” argument is actually fairly hollow in light of the evidence. Far too many articles on HR start with this premise, but the reality is that organizations have historically not rested their fortunes on human resources. The HR function remains among the least influential in most organizations, and competitive strategies have not typically been based on the skills, capabilities, and behaviors of employees. In fact, as Snell, Youndt and Wright (1996:62) noted, in the past executives have typically tried to “take human resources out of the strategy equation--i.e., by substituting capital for labor where possible, and by designing hierarchical organizations that separate those who think from those who actually do the work.

Corporate Social Capital and Firm Performance in the Global Information Technology Services Sector

The confluence of a number of marketplace phenomena has provided the impetus for the selection and conduct of this research. The first is the so called value relevance of intangibles in determining share market performance of publicly listed companies. The growing gap between market and book values has been proposed as an indication of the impact of intangibles on share price values. A second related phenomenon is the increasing reliance on share price appreciation as the principal means for shareholder return as opposed to returns through dividends. This suggests that share prices are becoming an even more critical firm performance measure than traditional accounting-based firm performance measures like return on investment (ROI). A third phenomenon is the rapid growth in marketplace alliances and joint ventures, the number of which has grown rapidly over the past 30 years. The explanation for these phenomena may lie in the concept of corporate social capital (CSC) which, as an intangible asset (IA), has been proposed in several normative studies. CSC has been defined as “the set of resources, tangible or virtual, that accrue to a corporate player through the player’s social relationships, facilitating the attainment of goals” (Leenders & Gabbay, 1999, p3). However, constructs for CSC have only been loosely defined and its impacts on firm performance only minimally empirically tested. This research addresses this gap in the literature. The key aim of this research is to explore the impact of CSC on firm performance. Through the use of CSC as a lens for viewing a firm’s intangibles, several important sub-components of the CSC formulation are exposed. These include a firm’s market centrality (CENT), absorptive capacity (AC), internal capital (INC), human capital (HC) and financial soundness. Therefore, an extended aim for this research is to identify the differential impacts of the CSC sub-components on firm performance. Firm performance was measured as ROI, market-to-book ratios (Tobin’s Q) and total shareholder return (TSR). Overall, the research results indicate that CSC is a significant predictor of firm performance, but falls short of fully explaining the market-to-book value disparity. For this research an innovative computer-supported content analysis (CA) technique was devised to capture a majority of the data required for the empirical research. The use of a commercial news aggregation service, Factiva, and a standard taxonomy of terms for the search, allowed variables for intangible constructs to be derived from a relatively large sample of firms (n=155) from the global information technology services (ITS) sector from 2001 to 2004. Data indices for joint venture or alliance activity, research and development (R&D) activity, HC, INC and external capital (EC) were all developed using this CA approach. The research findings indicated that all things aren’t equal in terms of how the benefits of CSC accrue to different firms in the sector. The research indicated that for larger, more mature firms, financial soundness does not necessarily correlate with improved shareholder return. The inference is that these firms may have reached a plateau in terms of how the market is valuing them. In terms of market centrality, the research indicates that software firms could benefit from building a larger number of alliances and becoming more centrally connected in the marketplace. The reverse is true, however, for larger, more established firms in the non-software sectors. These companies can be penalised for being over-connected, potentially signalling that they are locked into a suite of alliances that will ultimately limit their capacity to innovate and grow. For smaller, potentially loss-making firms, the research indicates that investments in HC are potentially the only investment strategy that could result in improvements in profitability and shareholder return. Investments by such firms in R&D or INC developments are likely to depress shareholder value and therefore should be minimised in favour of HC investments. For larger, more established firms, investment in HC is beneficial for both ROI and TSR. Investments in areas like R&D and INC were found to be only beneficial to those firms who have the financial capacity to afford it. Firms that don’t appear to have the financial resources to support the level of investments they are making in R&D and/or INC were penalised by the market. Overall, the research provides specific insights into the links between firms and their performance, through appropriate investments in CSC. In terms of research practice, this research demonstrates the viability of computer-supported CA. Progress in the development of more intelligent search technologies will provide increasing utility to CA researchers, promising to unlock a vast range of textual source data for researchers that were previously beyond manual CA practices