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A critical examination of implementing government sponsored intellectual capital management and reporting programs for small and medium enterprises: Hong Kong and Japan

Janice Tee Jeok Inn (Graduate School of Business Administration, Kobe University, Kobe, Japan)
John Dumay (Department of Accounting and Corporate Governance, Macquarie University, Sydney, Australia)
Katsuhiko Kokubu (Graduate School of Business Administration, Kobe University, Kobe, Japan)

VINE

ISSN: 0305-5728

Article publication date: 11 May 2015

475

Abstract

Purpose

This study aims to examine the impact of implementation of government-sponsored intellectual capital (IC) management and reporting (ICMR) programmes in Hong Kong and Japan for small and medium enterprises (SMEs) for the purpose of issuing an IC statement (ICS).

Design/methodology/approach

The authors present a critical analysis using semi-structured interviews with employees and owners of Hong Kong and Japanese SMEs who participated in their respective government’s ICMR programmes and who published an ICS.

Findings

The authors conclude that many enterprises did not achieve the full benefit of participating in the ICMR programme because consultants funded by the government prepared the ICS. Instead, consultants should take on more of a “missionary” role, educating enterprises about IC, rather than doing the work for them.

Research limitations/implications

This research is restricted to enterprises that published one or more ICS. Future research should include enterprises participating in the ICMR programme that failed to publish an ICS.

Practical implications

Enterprises that are able to utilise IC in their daily business routine will think IC is useful and continue using it. Conversely, those enterprises that relied on consultants to prepare the ICS will not understand its benefits.

Originality/value

Policymakers should not solely concentrate on creating new IC reporting frameworks or guidelines for enterprises to follow because this focus limits the understanding of how enterprises can utilise IC concepts with the consequence that they may eventually give up on IC reporting.

Keywords

Citation

Tee Jeok Inn, J., Dumay, J. and Kokubu, K. (2015), "A critical examination of implementing government sponsored intellectual capital management and reporting programs for small and medium enterprises: Hong Kong and Japan", VINE, Vol. 45 No. 2, pp. 214-238. https://doi.org/10.1108/VINE-09-2014-0053

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited

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