Perspectives On Intellectual Capital

Perspectives on Intellectual Capital bridges the disciplinary gaps and facilitates knowledge transfer across disciplines, featuring views on intellectual capital from the fields of accounting, strategy, marketing, human resource management, operations management, information systems, and economics. It also offers interdisciplinary views on intellectual capital from the perspectives of public policy, knowledge management and epistemology. By analyzing the various perspectives, Editor Bernard Marr is able to present a truly comprehensive understanding of what intellectual capital is, including the "state of the art" thinking about it in each discipline, the common key trends, and the trajectories for future developments, learning, and practice. Contributors include many of the leading thinkers in their respective disciplines: Mie Augier and David Teece on the Economic Perspective, Bernard Marr and Goran Roos on the Strategy Perspective, Baruch Lev, Leandro Canibano, and Bernard Marr on the Accounting Perspective; Sudi Sudarsanam, Ghulam Sorwar, and Bernard Marr on the Finance Perspective; Jan Mourtisen, Per Nikolaj Bukh, and Bernard Marr on the Reporting Perspective; Lisa Fernstrom on the Marketing Perspective; Ulf Johanson on the HR Perspective; L. Martin Clotier and E. Richard Gold on the Legal Perspective; Partick H. Sullivan on the Intellectual Property Perspective; Giovanni Schiuma, Antonio Lerro, and Daniela Carlucci on the Interfirm Perspective; Ahmed Bounfour and Leif Edvinsson on the Public Policy Perspective; J-C Spender and Bernard Marr on a Knowledge-Based Perspective; Goran Roos on An Epistemology Perpsective. Foreword by Robert Grant. Bernard Marr is a Research Fellow in the Centre for Business Performance at Cranfield School of Management, UK, and Visiting Professor, University of Basilicata, Italy.

The objective of this book is to explore the relationship between intellectual capital management and the sustainable development of organizations and society. To do so, it introduces readers to the topic of intellectual capital in the context of several connected entities such as organizations, cities and regions, sharing insights that both reflect the status quo and demonstrate the need for further action. In closing, the book presents practical cases to verify the impact of intellectual capital management on sustainable and competitive development.

A firm’s productivity has mainly been based on human capital resources, with organizational value and performance dependent on the knowledge and skills of their managers and employees. Because human capital research captures the transformation and complexity of productive organizations in today’s globalized economy, it is crucial to grasp the scope and breadth of human capital-intensive firms (HCIF) and their impact in relation to value creation. Global Perspectives on Human Capital-Intensive Firms is an essential reference source that provides an advanced analysis of modern firms at an analytical and empirical level, as well as a transdisciplinary approach to how human capital will impact the economics and management of a firm. Featuring research on topics such as firm performance, knowledge creation, and organizational management, this book is ideally designed for accountants, researchers, professionals, business managers, human resource managers, graduate-level students, academicians, consultants, and practitioners seeking coverage on the evolution of HCIF in different sectors, their internal and external organizations, and their performance.

With the proper management, knowledge-based resources (human capital, relational capital, structural capital) aim to contribute to the creation of a competitive advantage not only for companies and institutions, but also for nations and economic regions. Intellectual Capital Strategy Management for Knowledge-Based Organizations brings together new perspectives on the knowledge-based view of strategy management as it considers the role of companies, organizations, and nations in the storage and measurement of their knowledge. This book is useful for industry leaders, practitioners, academics and scholars interested in emerging aspects of knowledge management and industry services.

In the knowledge economy, the value of corporations is directly related to their knowledge and intellectual capital. But broaden the perspective a little wider and you begin to see the possibilities: Think of cities, regions, even entire nations, in addition to the public sector. If intangibles and intellectual capital are important to the private sector, they are also important to the productivity and competitiveness of the public sector, and so to communities and nations as a whole. In this book, Editors Ahmed Bounfour and Leif Edivinsson have brought together the best minds in intellectual capital throughout the world to focus on a new and fertile area of research: measuring and managing the intellectual capital of communities. This is a creative and cutting-edge area of research that has the potential to change how public sector planning and development is done. Once there is a clear way to identify where wealth is created in a given region/nation, this process has the potential to reveal a huge knowledge repository in the public sector with a significant—but idle—potential for collective wealth creation—the wealth of nations in waiting.

“How does the management handle the important know-how capital? It is considerably more important to know what is invested in it in the form of education, research etc., than what is invested in office furniture. Nevertheless it is the latter that figures in the annual accounts.” —Karl-Erik Sveiby, The Invisible Balance Sheet[1] This was a critical juncture in the life of Intellectual Capital Management (ICM). Since the 1990s, the topic of intangibles has been the focus of attention for both academic researches and business practices. A significant amount of literature attempts to understand the nature of intangibles, to measure them, as well as to assess the value relevance of different intangible elements. Given the economic importance of intangibles, a number of intangible measurement frameworks or models have been developed, and different guidelines have been constructed. Nowadays, there is no doubt that if nations and organizations want to attain a competitive advantage, they have to deal with intellectual capital. They are in the balance sheets of national and organizational wealth and value, although not in the explicit terms and figures that accountants need for calculation. Almost 23years ago, Sveiby in his book, the invisible Balance Sheet, wrote: “Rarely is the question asked, why measure intangibles? The answer is not self-evident. Intangibles are difficult and expensive to measure and the results are so uncertain, so the reason had better be a good one.” [2] We know that the answers to this question probably already exist within our organizations, but we have yet to map the easiest and most accessible routes to them. However, a significant amount of empirical research can be found in the field of value relevance of intangibles, most of this has focused on the impacts of individual intellectual capital components on firm`s overall performance, and little is known regarding the internal composition and complementarities between intellectual capital management and other organisational capabilities. Nowadays, modern management practices are considered as a strategic means of competitive advantage. From the resource-based point of view, the value of resources does not only reside in the resources themselves but also in the way they are deployed. Therefore, capabilities can also be seen themselves as intangible resources. Therefore, apart from the lack of theoretical background and contextual information, general intellectual capital studies suffer from the availability of practical case studies about how to manage them. This issue is becoming even more prominent in case of universities; where it is coupled with the dichotomous of the definition of perceived/expected value of intellectual capital in higher education sectors. For many, the intellectual capital of universities assumed to be in its highest level of excellence, while new researches show that universities false to achieve expected innovativeness goals. This issue needs more attention from higher education policy makers since nowadays it is more expected that universities facilitate the spread and transfer of new knowledge and technology to the business world, while adopting more businesslike approaches and becoming more outward-looking. With this aim, some third generation universities have established or supported formation of science parks near their campuses as an structure for fostering knowledge and technology transfer and application of scarce research resources to increase the dynamism between the between the academic world and the business world. Generally it is expected that science parks contribute to the regional development by fostering the growth of knowledge-based firms, advocating relationships and networking among large companies and SMEs, and providing the linkage opportunities between firms and R&D institutions and universities. Many researchers and economists have linked output from science parks and business incubators to economic growth indicators, such as job and wealth creation in developed and developing countries. From this prospective, it seems that the definition of science park shares certain similarities with the concept of the business ecosystem where the focus is to build an extensive network of partners that can enable companies to innovate faster, at lower cost, while enhancing their tangible and intangible assets, and create new value through an increased number and variety of information, knowledge flows and services available to them. Considering the knowledge intensive nature of onsite SMEs, researchers have indicated that intellectual capital is likely to be the key sources of sustainable competitive advantage for SMEs. Therefore, science park capabilities in localising the knowledge spillover and providing networking opportunities become a critical source for development of intellectual capital stocks in onsite SMEs. Therefore, SMEs` benefits will be enhanced if intellectual capital management practices can be captured, learned, codified, applied, developed and transferred through co-evolution and co-opetition opportunities, and via the innovation platform of science park business ecosystem. Now, what if universities as an important role players in such business ecosystems fail to manage their intellectual capital stock, or do not continuously develop their intellectual capital management capabilities? On both universities and companies sides, many executives and managers don’t even know that intellectual capital management exists, or that it is the solution to many issues concerning improving organisational efficiency, effectiveness, and innovation. There are many intellectual capital management failures to point to; perhaps more failures than successes. Does intellectual capital management then have, or even need, a future? If so, what are the best practices in managing intellectual capital in both academic and business eras? This book is a response to the fact that on the whole, universities and SMEs have grappled with, but not yet mastered, intellectual capital management. The central motivation for assembling the contributions in this book on the intellectual capital management derives from the observation that very few universities and located knowledge intensive small and medium sized businesses on universities science parks appear to be inclined to explain what intellectual capital is or how it works socially, organizationally or economically. This book has pulled together number of leading researchers from a range of intellectual capital management studies disciplines in one convenient volume. The chapters in this book include the selected and most up-to-date ideas, concepts, practices and case studies on the subject of intellectual capital management, particularly in higher education, science and technology, submitted to the 5th International Conference on Intellectual Capital Management. The overall objective is to inform the higher education policy makers and entrepreneurial individuals about the importance of intellectual capital management and to provide practical but principled guidance for enhancing such capabilities. The mission is to condense emerging IC theory and to distill it into actionable form of immediate relevance and use by potential audiences. Jalil Khavand Kar September, 2013 [1] Sveiby, Karl-Erik. (1989), The Invisible Balance Sheet; Key indicators for accounting, control and valuation of know-how companies, Stockholm: The Konrad Group. P.12. [2] Sveiby, Karl-Erik, Accessible via: (http://www.sveiby.com/articles/IntangibleMethods.htm) ----------------------------------------------------------------------------- Contents Preface xi Acknowledgement xv About the Authors xvii Section One: Concepts, Definitions and Frameworks Chapter. 1: Intellectual Capital, Higher Education, Science Parks and Techno based Enterprises Jalil Khavand Kar 3 Chapter. 2: Knowledge Management: What It Really Means and How We Should Go About It? Shafqat Farooq 11 Chapter. 3: Knowledge Creation based on Communities: The Japanese Approach Pierre-Marie Fayard 31 Section Two: Higher Education Chapter. 4: The Local Economic Impact of Higher Education Institutions in Hungary Balázs Kotosz 45 Chapter. 5: Knowledge Management between Colleges and Industry: A Case Study in Turkey Asaf Varol and Cihan Varol 61 Chapter. 6: Human Capital Management through Entrepreneurial Education at Higher Education Institutions - Myth or Reality? Sana Ahmed 77 Chapter. 7: Intellectual Capital and Internationalization of Entrepreneurial Universities Hiroko Kawamorita, Aidin Salamzadeh and Saeed Jafari Moghadam 87 Chapter. 8: Using Appreciative Inquiry in Developing Intellectual Capital in Mihail Kogalniceanu University Ștefan Antonio SANDU 111 Section Three: Entreprise Chapter. 9: Knowledge Management Strategies in Technopreneurial Firms Kavoos Mohannak 139 Chapter. 10: Knowledge Management as a Learning Process to Upgrade Strategic Capabilities: Case study of micro-firms network in Southern Brazil Pierre-Marie Fayard, Alsones Balestrin 159 Chapter. 11: Human Resource Accounting – Relevance to SMEs Rolla Krishna Priya 169 Chapter. 12: Intellectual Capital Disclosure in Financial Reports of Nigerian Companies Ramat Titilayo Salman, Kabiru Isa Dandago and Binta Kabir Isa 185 Chapter. 13: Globalized Information Management Agha Syed Ayub Shah Bukhari, Syed Muhammad Tayyab Shah and Jawairya Bukhari 211 Chapter. 14: Organizational Brain Drain - Nipping in the bud, a Panacea for SME Success Mujtaba M. Momin 231 Chapter. 15: Challenges of Global Marketing Communication Intercultural Marketing Judit Mátyás 249 Chapter. 16: Economic Development and Intellectual Capital in Georgia Eka Gegeshidze 261 Section Four: Case Reports Perspectives on Development of Intellectual Property in Georgia George Chiladze 273 On Clusters: External and Internal Perspectives Ifor Ffowcs-Williams 291