The intellectual capital impact on Polish construction companies during the transformation period
Journal of Human Resource Costing & Accounting
ISSN: 1401-338X
Article publication date: 4 September 2009
Abstract
Purpose
The different models have been used in recent intellectual capital (IC) studies to understand better the outcome of company intangible asset components. The purpose of this paper is to develop and apply the index of IC of construction companies in relation to the growth of their net profit.
Design/methodology/approach
Evaluation of the relationship between an IC index and company net profit employs a scoring method of evaluation of individual components of IC, which include human capital, investment capital, process capital, relations capital and management styles. The correlation method, based on rank correlation index, has been used to calculate the strength and character of the relationships.
Findings
A quantitative method of evaluation of qualitative components of IC has been developed as well as a way of finding a relationship between the quality of IC and the growth of net profit earned by a company. The obtained findings support the hypothesis: the higher the value of IC, the greater the net profit growth.
Research limitations/implications
The paper covers the procedure of measuring IC, determination of its effect on company results and creating IC in the context of long‐term competitiveness.
Practical implications
The method can be applied by construction companies in order to determine the value of intellectual assets and to assess how they influence profit growth.
Originality/value
The solutions presented in the paper provide an approach to qualitative assessment of intellectual assets, in the strategic and universal aspect.
Keywords
Citation
Buszko, A. and Mroziewski, M. (2009), "The intellectual capital impact on Polish construction companies during the transformation period", Journal of Human Resource Costing & Accounting, Vol. 13 No. 3, pp. 206-220. https://doi.org/10.1108/14013380910995502
Publisher
:Emerald Group Publishing Limited
Copyright © 2009, Emerald Group Publishing Limited