Performance-driven resource allocation for technology-exploiting ventures: Exploration of optimal capital commitment strategy for sustainable growth

The purpose of this research was principally to explore the growth and development experience of technology-exploiting ventures (TEVs) with the objective to examine factors that augmented their performance from an interdisciplinary perspective building on the traditional resource-based view and the contemporary studies on intellectual capital. Based on a holistic approach, a literature review was completed to cover interdisciplinary research studies in the areas of performance measurement, resource-based view, intellectual capital, technology management, and other pertinent management studies, particularly managerial accounting and corporate governance. A framework of resource flow integrated with a performance measurement system in connection with issues of venture governance was developed to exemplify critical factors that could augment optimal resource allocation and growth of TEVs. Research questions were introduced to investigate current discrepancies in the relevant knowledge. Focusing on the two defined stages of early-growth and expansion, this research adopted the triangulation methodology to investigate the opinions of equity stakeholders and to explore the patterns and variations in resource utilisation among cases of TEVs under the two different stages. Both in-depth case analysis and longitudinal disclosures analysis were engaged to explore the underlying relationship between significant components of intellectual capital and performance of TEVs. The results revealed the differentiating reliance on resources at the two prescribed stages of development and the implications to performance measurement system of TEVs

Reporting intellectual capital flow in technology-based companies : case studies of Canadian wireless technology companies

Purpose - The paper seeks to explore the development of an intellectual capital flow statement based on a framework that harnesses contemporary research on intellectual capital. Design/methodology/approach - Case studies of wireless technology companies based in Canada are adopted to examine the interrelationship between intellectual capital components with a resource-based view as well as deficiencies in their current financial reporting with respect to intellectual capital. An intellectual capital flow statement is proposed in order to capture the necessary characteristics. Findings - This study confirms the inter-relationship between components of intellectual capital and business growth performance among the selected cases of wireless technology companies. It suggests an add-on disclosure of intellectual capital flow that would enhance the usefulness and predictability of performance. Research limitations/implications - This study is based on case studies of six wireless technology companies and may not be generalisable to other technology-based companies. Practical implications - The paper suggests a disclosure method for intellectual capital that mitigates problems with information asymmetry in technology-based companies while maintaining harmony with current financial reporting practice. Originality/value - This paper integrates prior studies and concepts in intellectual capital, technology management and financial accounting theory, aiming to develop an integrated framework for the disclosure of intellectual capital