THE TRANSPARENCY IN THE REPORTING OF INTELLECTUAL CAPITAL: BETWEEN THE MANAGEMENT RESPONSIBILITY AND THE STAKEHOLDERS' REQUIREMENTS

The increasingly ample orientation of the companies towards the intellectual capital is based on the rediscovery of this resource with (almost) unlimited potential, generating economic benefits for a company. Given its importance, the information needs of stakeholders on this line have increased. Thus, in this context, it was put the issue of reporting information related to intellectual capital and the transparency of information published by companies, given that its reporting is not currently regulated. The objective of this paper is to establish an answer to a question: Up to what limit should be made public information related to this capital, given that stakeholders want as much information, and managers only publish information that favors the company\'s image? In addressing this issue, the point of departure is the intellectual capital structure, most commonly found in the literature, namely human capital, structural capital and relational capital. With this structure, the paper establishes, as a first step, a series of relevant indicators relating to the three components from three different perspectives: resources, management achievements and future expectations. At first observation, the indicators are divided into two categories: financial and non-financial, the first ones targeting the company\'s performance in relation to the components of intellectual capital, and the latter ones having a pronounced social touch. Based on these indicators, the paper analyses whether a company is willing to publish information, particularly those with social influence, especially in the current conditions of intensely requested social responsibility. In addition to documentary research, we also consider the most important findings based on existing reporting arrangements of the companies, especially from the reports published by them, depending on different criteria, such as social engagement, financial and accounting criteria etc. Given the lack of clear regulations in this respect, it is up to the companies the amount of information publicly provided about this topic, although the benefits of social responsibility have an important impact on the intellectual capital and its components. In this context, accounting helps stakeholders by proposing a valuation model of intellectual capital, based on accounting figures. This financial assessment of intellectual capital, although very useful, is limited and not sufficient in reflecting the image of a company in public reports. This paper aims to present intellectual capital reporting valences, its two sides, financial (which includes the performance of the intellectual capital) and non-financial, including scoring the issues that underline the importance of such reports, from the perspective of the stakeholders and the accountability of the managers in relation to them.intellectual capital, transparency, stakeholders, human capital, intangible assets

Знання як фактор конкурентних переваг: перспективи України

Introduction. In recent decades, economic growth of the leading world countries have occurred on the basis of information and knowledge embodied in new products, production technologies and management at all stages of production and marketing. Due to the generation and commercialisation of knowledge competitive advantages of individual companies, institutions and national economies, leaders of economic growth are formed and advanced. Considering the current trends in the changing conditions of economic and political space of Ukraine and abroad, which will only intensify fast and efficient reorientation to new markets is relevant for the domestic producers. The purpose of the study is to investigate the role and place of knowledge as an element of intellectual capital of organisations to ensure their competitiveness in light of trends in the global economy; to assess the current position and to outline the problems and perspectives of fast and efficient innovation growth in Ukraine based on knowledge. Results. The role of knowledge in providing competitive advantages of organisations has been outlined. The place of knowledge relevant to intellectual capital of organisations is specified. It has been determined that knowledge as an element of intellectual capital has a dual nature: it can be regarded both as an intellectual resource and as a possibility to implement existing intellectual capital of organisations. The influence of knowledge in the global economy is investigated. Ukraine’s position in the world rankings, which reflects the level of economic development based on intellectual capital and innovation, as well as the status of its competitiveness, has been studied. From these positions, we have specified strengths and weaknesses of the national economy and outlined the prospects of economic growth based on knowledge as an element of intellectual capital.Окреслено роль знань у забезпеченні конкурентних переваг організацій. Уточнено місце знань в інтелектуальному капіталі організації. Визначено, що знання як елемент інтелектуального капіталу, мають дуалістичну природу: їх можна розглядати як інтелектуальний ресурс, а також як можливість реалізації наявного інтелектуального капіталу організації. Досліджено вплив знань на розвиток світової економіки. Досліджено позиції України у світових рейтингах, які відображають рівень економічного розвитку країн на основі інтелектуального капіталу та інновацій, а також стан їхньої конкурентоспроможності. Визначено сильні та слабкі сторони вітчизняної економіки, а також окреслено проблеми та перспективи її зростання на основі знань як елементу інтелектуального капіталу

Знання як фактор конкурентних переваг: перспективи України

Introduction. In recent decades, economic growth of the leading world countries have occurred on the basis of information and knowledge embodied in new products, production technologies and management at all stages of production and marketing. Due to the generation and commercialisation of knowledge competitive advantages of individual companies, institutions and national economies, leaders of economic growth are formed and advanced. Considering the current trends in the changing conditions of economic and political space of Ukraine and abroad, which will only intensify fast and efficient reorientation to new markets is relevant for the domestic producers. The purpose of the study is to investigate the role and place of knowledge as an element of intellectual capital of organisations to ensure their competitiveness in light of trends in the global economy; to assess the current position and to outline the problems and perspectives of fast and efficient innovation growth in Ukraine based on knowledge. Results. The role of knowledge in providing competitive advantages of organisations has been outlined. The place of knowledge relevant to intellectual capital of organisations is specified. It has been determined that knowledge as an element of intellectual capital has a dual nature: it can be regarded both as an intellectual resource and as a possibility to implement existing intellectual capital of organisations. The influence of knowledge in the global economy is investigated. Ukraine’s position in the world rankings, which reflects the level of economic development based on intellectual capital and innovation, as well as the status of its competitiveness, has been studied. From these positions, we have specified strengths and weaknesses of the national economy and outlined the prospects of economic growth based on knowledge as an element of intellectual capital.Окреслено роль знань у забезпеченні конкурентних переваг організацій. Уточнено місце знань в інтелектуальному капіталі організації. Визначено, що знання як елемент інтелектуального капіталу, мають дуалістичну природу: їх можна розглядати як інтелектуальний ресурс, а також як можливість реалізації наявного інтелектуального капіталу організації. Досліджено вплив знань на розвиток світової економіки. Досліджено позиції України у світових рейтингах, які відображають рівень економічного розвитку країн на основі інтелектуального капіталу та інновацій, а також стан їхньої конкурентоспроможності. Визначено сильні та слабкі сторони вітчизняної економіки, а також окреслено проблеми та перспективи її зростання на основі знань як елементу інтелектуального капіталу

ACKNOWLEDGING INTELLECTUAL CAPITAL IN MALAYSIAN PUBLIC UNIVERSITIES PERFORMANCE

  In today's knowledge-based economy, intellectual capital has emerged as a crucial component for boosting productivity and sustaining organizational performance. The intellectual capital approach has assumed a preeminent position in the higher education industry, where knowledge is the primary output and input. The majority of its valuable input consists of researchers, managers, and students who are acquainted with the university's procedures, rules, and regulations, as well as its network of relationships. Principal outputs include research results, publications, educated students, and productive stakeholder relationships. If universities are to continue providing high-quality services and ensure their long-term viability, these intellectual capital components must be properly identified and managed. Malaysian public universities were chosen as the sample for this investigation into how universities extract the value of their intangible assets. This study seeks to provide empirical evidence on the relationship between the intellectual capital of universities and their performance. IBM-SPSS analysis software was applied to the dataset of 56 respondents. The analysis demonstrates that intellectual capital significantly influences universities’ performance, especially on financial, internal process and learning growth performance perspectives. This study provides a deeper understanding of how universities measure their intellectual capital and the significance of its value in enhancing the performance of public universities. The indicators discovered in measuring intellectual capital are anticipated to become a model applicable to ASEAN public universities for managing and reporting intellectual capital and its significant influence on a university’s performance.   Keywords: Intellectual Capital; Public Universities; University Performance; Measuremen

The Quest for Economic Recovery: Innovative Development and KM Perspectives

Most organizations respond to an economic crisis by focusing on operational efficiency and/or on intellectual capital utilization and innovation. The conjecture is that intellectual capital confers distinct competitive advantage to an enterprise via knowledge management and knowledge spillovers and improved innovation capacity. Despite mixed empirical evidence to support this claim, intellectual capital and knowledge management remain at the forefront of an organization’s agenda during an economic downturn. Recent surveys from the field indicate some dissatisfaction with practical knowledge management. These findings are difficult to interpret because at the same time organizations appear to adopt the position that management of knowledge resources is extremely important from a strategic perspective. The objective of this chapter is to provide some new perspectives on what drives success in the knowledge economy and to demonstrate how knowledge management is the ideal response to the challenge of innovatio

The Quest for Economic Recovery: Innovative Development and KM Perspectives

Most organizations respond to an economic crisis by focusing on operational efficiency and/or on intellectual capital utilization and innovation. The conjecture is that intellectual capital confers distinct competitive advantage to an enterprise via knowledge management and knowledge spillovers and improved innovation capacity. Despite mixed empirical evidence to support this claim, intellectual capital and knowledge management remain at the forefront of an organization’s agenda during an economic downturn. Recent surveys from the field indicate some dissatisfaction with practical knowledge management. These findings are difficult to interpret because at the same time organizations appear to adopt the position that management of knowledge resources is extremely important from a strategic perspective. The objective of this chapter is to provide some new perspectives on what drives success in the knowledge economy and to demonstrate how knowledge management is the ideal response to the challenge of innovatio

Intellectual Capital and Firm Performance: An Empirical Study of Software Firms in West Africa

This study investigates factors instrumental to the success of software industries of the 3I Nations (India, Ireland and Israel), examines the relationship between its elements, and studies the performance of software firms in West Africa. The study draws on concepts from multiple theoretical perspectives to develop a model for assessing the relationship between intellectual capital of software firms and their performance. The developed model was experimentally validated through a field survey of 83 software companies in West Africa using the Partial Least Square method. The survey results show significant relationship between the elements of intellectual capital and competitive capabilities of firms and between competitive capabilities and firm performance. Mixed results were found on the moderating effects of management commitment and transformational leadership. The findings provide important implications to researchers, policy makers, software developers and other market players while contributing to knowledge on strategic management and the strategic importance of intellectual capital

Using the balanced scorecard scale in building, a four-track measurement model to predict the intellectual capital of industrial stockholder companies listed on the Amman stock exchange for the period (2016–2020)

The goal of this study was to investigate the use of the balanced scorecard scale in the development of a four-track measuring model to estimate the intellectual capital of industrial joint stock businesses listed on the Amman Stock Exchange. The sample for this study is made up of 59 industrial public joint stock businesses registered on the Amman Stock Exchange (ASE) between 2016 and 2020. A multiple linear regression analysis using EVIEWS software and the findings suggest that the balanced scorecard has a favourable influence on intellectual capital from the financial, customer, internal-business-process, learning, and growth perspectives. According to the study, make suggestions based on the results of our inquiry to increase the intellectual capital of these companies. This might involve revising the company's human capital management methods, strengthening customer relationships, or concentrating more on innovation and learning. The current study is the first of its kind to be conducted in a developing nation, such as Jordan, and the findings might be useful to other underdeveloped nations

Intellectual capital disclosure trends: Singapore and Sri Lanka

Purpose - This paper investigates the intellectual capital disclosure trends and disclosure category differences of top 20 listed firms in a developing nation, Sri Lanka, and moderately developed nation, Singapore. The aim of this study is to highlight the differences in IC disclosure practice between developing and developed nations. Design/methodology/approach - The study investigates the top 20 firms by market capitalization listed on the Colombo stock exchange in 1998 to 2000. Using the content analysis method, it reviews the annual reports of these firms to determine intellectual capital disclosure trends in Sri Lanka. It then compares these findings with a similar unpublished study undertaken in Singapore during the same period (Cheng, Fok & Low, 2002). Findings – The study identified IC disclosure differences between Sri Lankan and Singapore firms, and suggest reasons for differences from country perspectives. The paper highlights the need for a uniform methodology in intellectual disclosure framework to establish consistent disclosure practices. Practical implications - This study highlights the need to establish a uniform methodology for financial disclosure under International Financial Reporting Standards (IFRS) that can mobilize globally uniform disclosure intellectual capital disclosure practices. Originality/value –This study offers insights into comparative trends in intellectual capital disclosure practices between a moderately developed and a developing country

The Relationship between Non-Financial Stakeholders and Capital Structure

In today's dynamic environment, both intellectual capital (IC), the main value added factor, and perceived environmental uncertainty (PEU), an unpredictable contingency factor, influence corporate performance (CP). Financial accounting literature highlights the importance of non-financial factors. Therefore, it is important for organizations to rely more on non-financial criteria than on financial factors to achieve higher competitive advantage. Identifying the most important non-financial factors that affect corporate performance and their relationship with capital structures (CS) is the main issue in today's dynamic conditions. This research examines the relationship between non-financial factors of IC and PEU and evaluates their influence on CS directly or indirectly by considering the mediation effects of corporate performance. Questionnaires were distributed to 339 public listed Iranian manufacturing companies selected based on census data. Data was analyzed using structural equation modeling. The main findings of this study are as follows: IC can enhance corporate performance, PEU is positively linked to corporate performance, and corporate performance is positively linked to capital structure. The results also indicated a full mediation effect of corporate performance in the relationship between PEU and capital structure. Also, we analyze intellectual capital relation with 1) traditional vs. secular-rational values and with 2) survival vs. self-expression values. In order to determine the most efficient versions of intellectual capital, an Intellectual Capital Multiple Criteria Decision Support (ICMCDS) system was developed, consisting of a database, database management system, model-base, model-base management system, and user interface. This study contributes to determining capital structure decision making by considering IC and PEU in the context of companies in Iran. Further in-depth research is needed to examine the links between non-financial factors and capital structure with different measurement and perspectives to develop a deeper understanding of their effect on capital structure