Emerald | Journal of Intellectual Capital | Table of Contents

How do different business models affect intellectual capital?

literatinetwork@emeraldinsight.com (Chiung-Ju Liang, Tzu-Yin Chen, Ying-Li Lin) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to investigate whether value-creating activities and intellectual capital (IC) accumulation are affected by different business models. Design/methodology/approach – Field visitations and interview-based questionnaires are used for data collection. This study uses the structural equation model to examine Taiwanese original equipment manufacturers (OEMs) and original brand manufacturers (OBMs) in China. Findings – Empirical results show that Taiwanese OEMs and OBMs adopt different combinations of value-creating activities, which results in differences in IC accumulation. Taiwanese OEMs have engaged in manufacturing and innovation activities, and have created process and innovation capitals. By contrast, Taiwanese OBMs have developed their marketing channels, human resources, innovation centres, and social networks, and have accumulated their human, customer, process and innovation capitals. Practical implications – Taiwanese OEMs have cultural advantages and have built productive infrastructure in China. Therefore, these enterprises should transform their business models into OBMs to enhance their market performance. Foreign investors could leverage the experiences and IC of Taiwanese enterprises to make their investments run more smoothly. Originality/value – This paper contributes to the existing literature by investigating relationships among business models, value-creating activities, and IC. This study also provides useful guidance for enterprises considering investing in China and for academics researching in this area.

Knowledge protection in knowledge-intensive business services

Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to examine the issue of knowledge protection in knowledge-intensive business services (KIBS). In particular, it addresses four research questions: do KIBS firms perceive the necessity to protect their knowledge? If so, do they protect it? What method (or combinations of methods) they typically use? What are the main factors affecting the approaches to knowledge protection adopted by these companies? Design/methodology/approach – The paper illustrates and discusses the findings of a survey of 471 KIBS companies located in the Northeast of Italy and operating in three different sectors: IT Services, Design and Communication, Professional Services. Findings – The study classifies the types of knowledge protection mechanisms and investigates similarities and differences in knowledge protection between KIBS operating in distinct sectors, having different size, and pursuing different knowledge management strategies. Practical implications – The outcomes of the investigation can have some important implications from a managerial viewpoint. In particular, the study provides food for though to both CEOs of KIBS companies regarding the mechanisms of knowledge protection, and to policy makers about the possible public policies that may help companies to protect their competitive knowledge capital without hindering their networks of interaction. Originality/value – The issue of knowledge protection is relatively new in the literature of KIBS, and findings are quite controversial. In particular, the state-of-the-art research shows that there are some important gaps that the paper tries to fill.

A look on the other side: investigating intellectual liabilities

literatinetwork@emeraldinsight.com (Federica De Santis, Marco Giuliani) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – This paper helps to address the need for investigations on intellectual liabilities (ILs). In light of these considerations, the purpose of this paper is to present an analysis of the extant literature on ILs in order to offer a solid base for improving the intellectual capital (IC) research agenda. Design/methodology/approach – This study proposes a descriptive review. Refereed published studies and seminal works were analysed and then systematised. Findings – This study shows that ILs tend to be overlooked in the IC discourse and identifies two main conceptions of ILs and the related measurement methods and tools. Furthermore, this study underlines the need to focus not only on what ILs are, but also on what ILs do. Finally, it supports the idea of adopting a holistic approach that considers both the positive (related to resources) and the negative (referred to liabilities) sides of IC. Research limitations/implications – The inability to cover all the literature that directly or indirectly deals with ILs is the main limitation of this paper. Time restrictions, language constraints and imperfect information narrow the coverage. Nevertheless, the adopted research methodology has allowed the authors to collect the main contributions in this field, in order to offer a concise, but complete picture of the studies on ILs. Practical implications – This paper can be of help to those interested in analysing ILs, as it aims to systematise and offer a concise overview of the current literature in this field, which should be of use to both researchers and practitioners. Moreover, it offers some reflections on the topic and identifies possible research paths useful to developing future studies of theoretical and practical relevance. Originality/value – This review differs from the previous ones dedicated to the IC discourse in two main ways: first, it does not focus on the whole of IC or on parts of it but on a specific topic, such as ILs, usually left out of the analyses and never adequately considered in previous literature reviews; second, it includes the publications on IC from 1999 to date and some unpublished works, in order to have both seminal and more consolidated studies.

A template for integrated reporting

literatinetwork@emeraldinsight.com (Indra Abeysekera) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to outline the concept of integrated reporting and to propose a template for integrated reporting in organisations. Design/methodology/approach – The approach to the conceptual model is founded on concepts proposed on integrated reporting by the King Report on Governance for South Africa (King III), and the International Integrated Reporting Council in the UK. Findings – The integrated report should explain the story of reaching the organisation's vision, underpinned by its values, enacted by management, monitored by governance, and using facets of resources relating to financial capital, intellectual capital, social capital, and environmental capital. Practical implications – The paper proposes an integrated reporting framework, and provides an example of a template to be used in organisations. Originality/value – To the best of the author's knowledge, this is the first academic paper that provides a coherent framework on integrated reporting, with a template.

Intellectual capital reporting in the Italian non-profit sector: analysing a case study

literatinetwork@emeraldinsight.com (Giovanni Bronzetti, Stefania Veltri) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to analyse the IC reporting practices of an Italian non-profit organization (NPO), the ANPAS Piemonte, selected as it is one of the few cases with a longstanding experience in issuing IC reports. Design/methodology/approach – This is an exploratory, qualitative case study focused on a single case study organization. The study took place over eight years. The case description and analysis are based on the IC reports published by the company. Findings – This paper concludes that the ANPAS Piemonte is an organization that has expended considerable focus and effort in developing an IC measurement and reporting model. It has a well-established IC reporting procedure, but a comprehensive view of IC and of the synergies among IC subcategories is lacking. Research limitations/implications – The study focuses on a single case study of a NPO providing public interest services in Italy. The main limitation therefore lies in the difficulties in generalizing the ANPAS Piemonte's experience to other NPOs. From the IC management point of view, the distinction between different industries may be as important as the profit orientation, as well as the operations of the third sector may vary across countries. Originality/value – The contribution of the article lies in its analysis of the IC reports of an organization in the context of the NP sector, as few prior studies have examined the third sector from an ICR perspective.

Intellectual capital and financial performance: an evaluation of the Australian financial sector

Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to examine the intellectual capital (IC) performance of the Australian Financial Sector for the period 2006-2008. It also aims to examine the relationship amongst various constituents of IC performance and the relationship between IC performance and the financial performance of the financial sector. Design/methodology/approach – The value added intellectual coefficient (VAICe) approach developed by Pulic is used to determine the IC performance of the Australian financial sector. The required data to calculate different constituents of IC were obtained from the annual reports of Australian banks. Findings – The paper reveals that VAIC has a significant relation with human costs and the value addition made by the Australian banks. All Australian-owned banks have relatively higher human capital efficiency than capital employed efficiency and structural capital efficiency. The size of the bank in terms of total assets, total number of employees and total shareholders’ equity has little or no impact on the IC performance of the Australian-owned banks. Research limitations/implications – The paper analyses IC performance of only 11 Australian-owned banks. However, the more than 90 per cent market share enjoyed by these banks still promises a degree of validation of the results of the paper from the Australian perspective or similar banking structure in some countries. Practical implications – The findings may serve as a useful input for financial institutions to apply knowledge management in their institutions and in addressing the factors affecting IC performance in order to maximise their value creation. The findings of the study would also provide some information to the stakeholders and potential investors to assess the value creation capabilities of financial sector companies. Originality/value – This is the first paper that examines the relationship of VAICe and the size of the firms for Australian-owned banks in Australia.

Intellectual capital and performance within the banking sector of Luxembourg and Belgium

literatinetwork@emeraldinsight.com (Anne-Laure Mention, Nick Bontis) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – Intellectual capital is widely acknowledged as the most critical resource of modern organizations. Nevertheless, empirical evidence on its actual contribution to the dynamics of the value creation process remains scarce, especially within certain sectors and geographic regions. The purpose of this paper is to address this gap by investigating the effects of intellectual capital and its components on business performance in banking institutions within Luxembourg and Belgium. Design/methodology/approach – This empirical research is conducted using a dedicated survey instrument administered to over 200 banks. Data analysis is achieved through structural equation modeling. Findings – Results indicate that human capital contributes both directly and indirectly to business performance in the banking sector. Structural and relational capital are positively related to business performance, though results are not statistically significant. Surprisingly, relational capital has been evidenced to negatively moderate the effect of structural capital on performance. Research limitations/implications – Traditional limitations of a cross-sectional study apply with respect to the attribution of causality and the time lag effects. Practical implications – A set of reliable items to capture intellectual capital has been identified and represents actionable knowledge for implementing an intellectual capital dashboard in banks. The dominant role of human capital also provides insight to managers with respect to business performance levers. Originality/value – Disentangling the effects of intellectual capital on business performance is of the utmost importance in service firms, as they are heavily reliant on intangible resources and capabilities. This research contributes to develop current understanding of these effects. Moreover, interaction effects between human, structural and relational capital have also been uncovered, thus extending prior knowledge on these complex relationships.

Measuring intellectual capital efficiency in the Malaysian software sector

Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to investigate the efficiency of Malaysian public-listed software companies in transforming intellectual capital (IC) into corporate values by using the data envelopment analysis (DEA) methodology. Design/methodology/approach – The authors use three individual components of value added intellectual coefficient (VAIC™) as the input variables, and Tobin's Q and return on equity (ROE) as the output variables. Findings – Examining a sample of 25 companies, findings of this study show that companies listed on the main market of Bursa Malaysia are less efficient than those listed on the ACE market. Among the sample companies, Eduspec Holdings Berhad, which falls in the “stars” zone, is the most efficient company with the highest frequency of reference. The results remain robust despite the criticism about the validity of VAIC™ as an IC indicator. Practical implications – The benchmarking analysis of this study may shed light for the managers in software companies to benchmark and improve their efficiency in IC management. Originality/value – This is the first paper to examine the IC efficiency of Malaysian software companies through DEA.

Value relevance of human capital information

literatinetwork@emeraldinsight.com (Ramin Gamerschlag) — Fri, 12 Apr 2013 00:00:00 +0100

Abstract

Purpose – The purpose of this paper is to investigate if human capital information voluntarily provided by German companies is value-relevant. Design/methodology/approach – By means of word-based content analysis, human capital information is extracted from German companies’ annual reports. Subsequently, the value relevance of the disclosed human capital information is analyzed by applying two established valuation models. Findings – The results show that human capital information is value-relevant. Especially, information on qualification and competence issues is positively associated with firm value. Nonetheless, the disclosed information does not lead to short-term changes in market value. Consequently, human capital information is value-relevant but not immediately. Practical implications – First, companies can improve their valuation on the capital market by disclosing information on their human capital. Second, standard setters can use this paper's results in defining relevant information categories for human capital disclosures. Third, the amount of human capital disclosures is increasing over time. Originality/value – This study explicitly evaluates the value relevance of the overall (especially nonfinancial) human capital information voluntarily provided in corporate annual reports.

Intellectual Capital in Science Parks and Incubators

Fri, 12 Apr 2013 00:00:00 +0100