An Efficiency Model for Assessing Intellectual Capital

2021 ◽  
pp. 84-91
Author(s):  
Aleksey Myasoedov
Keyword(s):  
Intellectual Capital ◽  
Intangible Assets ◽  
Knowledge Society ◽  
Favorable Effect ◽  
Sustainable Competitive Advantage ◽  
Economic Wealth ◽  
Tangible Assets ◽  
Key Factor ◽  
Essential Resource ◽  
Knowledge Intensive

Today we live in a knowledge society, a society shaped by the information revolution and developed by communication technologies. At the dawn of the new era, the concept of intellectual capital was first used to explain the importance of intellectual resources - such as information, knowledge, and experience - in the modern economy. Today, intellectual capital is a key factor in the company's profitability and has become an essential resource for creating economic wealth. In this environment, intellectual capital and intangible assets are fundamental to success. Intellectual capital consists of intangible assets that, when properly used, become a source of sustainable competitive advantage. To create value, the components of intellectual capital must interact. The assessment of intellectual capital is an important activity for any organization operating in a competitive market, and involves the achievement of intangible assets, but at a lower cost. The interest in measuring intellectual capital was caused by the fact that accounting, as it is currently practiced, has largely lost its information capacity as enterprises have become more and more knowledge-intensive. Traditional valuation methods based on accounting principles, where the value of a company's assets is a fraction of the value, have systematically undervalued companies. The existence of non-financial standards is critical to the company's value creation, as the accounting rules, under constant review, were originally developed for tangible assets, which are a source of wealth in the industrial period. In the literature, the assessment of intellectual capital is considered in different ways, with many approaches developed over time based on research and research, most of which are aimed at improving the performance of an organization, measured by different tools. This article is a synthesis of the most well-known models used to evaluate intellectual capital and its subsequent implementation in the case of Company X. The results obtained confirm the hypothesis that the intellectual capital of a company has a favorable effect on the results of the organization's activities and may indicate future competitiveness.

scholarly journals The Impact of Intellectual Capital on the SMEs Performance: A Study of the Romanian Central Region SMEs

2021 ◽  
Vol 16 (1) ◽  
pp. 198-209
Author(s):  
Ramona Todericiu
Keyword(s):  
Competitive Advantage ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
Business Performance ◽  
Intangible Assets ◽  
Sustainable Competitive Advantage ◽  
Economic Competition ◽  
Start Up ◽  
Tangible Assets ◽  
The Impact

Abstract The 21st century is the century of change and maybe one of the most important changes in the organizations’ life is the transition from focusing on the development of the tangible assets to the development of the intangible assets and the interest for attracting human resources capable to generate performance. The survival of many companies depends on their willingness and capacity to adapt to such changes. (Abdulaali, 2018) In this dynamic and complex economic system, the intangible assets of organizations become primary, being decisive for the organizations’ performance. In the new economic competition, intangible assets provide a sustainable competitive advantage, intellectual capital and intangible assets representing the key factor in company profitability and success. In the knowledge based society, intellectual capital has more value for organizations than tangible assets and knowledge becomes a permanent source of competitiveness (Bhatti, Zaheer, 2014). It is considered by specialists a valuable and strategic resource, since the success of organizations depends on creating, discovering, storing, disseminating, measuring and developing knowledge. The main objective of the research presented in this paper is to offer an overview on the specific problems and needs of the entrepreneurs financed through the Romania Start-up Plus programme, part of Start-UP Hub: The Entrepreneurs Laboratory Cod SIMS: 105648. A primary target of this research is to examine the components of intellectual capital and the way in which the intellectual capital influences the small business performance. The majority of the researchers agree that intellectual capital is directly connected to the performance of the SMEs sector. The results of our analysis shows the fact that intangible assets influence business development in various ways, such as increasing competitive advantage, expanding employee competency and improving organizational performance.

ALOKASI ANGGARAN, INTELLECTUAL CAPITAL, KINERJA KEUANGAN, DAN INDIKATOR KINERJA UTAMA BADAN LAYANAN UMUM

2021 ◽  
Vol 07 (01) ◽  
Author(s):  
Setyo Budi Hartono ◽  
◽  
Wahab Zaenuri ◽  
Fania Mutiara Savitri ◽  
Dessy Noor Farida ◽  
...  
Keyword(s):  
Human Resources ◽  
Financial Performance ◽  
Path Analysis ◽  
Intellectual Capital ◽  
Performance Indicators ◽  
Intangible Assets ◽  
Budget Allocation ◽  
Intangible Asset ◽  
Tangible Assets ◽  
Tangible Asset

Abstrak: Penelitian ini ditujukan pada anggaran dalam bentuk intangible asset (sumber daya manusia) dan tangible asset (aset tetap dan persediaan) yang diprediksi dapat mempengaruhi intellectual capital, kinerja keuangan sekarang dan mendatang, serta indikator kinerja utama. Alokasi anggaran sebagai baromater prioritas dalam mengembangkan intellectual capital ditujukan untuk memenuhi performa keuangan bagi indikator kinerja utama organisasi. Populasi yang juga menjadi sampel yaitu unit dan fakultas pada UIN Walisongo Semarang sebanyak 30 unit. Metode pengambilan sampling menggunakan teknik sampel jenuh yang mengambil seluruh populasi. Data yang digunakan adalah data sekunder berupa laporan tahunan dan laporan pencapaian indikator kinerja utama tahun 2019-2020. Analisis data menggunakan path analysis. Hasil penelitian ini adalah alokasi APBN tahun 2019 UIN Walisongo hanya terfokus pada tangible asset sebesar 82%, sementara 18% dialokasikan untuk intangible asset. Intangible asset tidak berpengaruh secara terhadap semua hubungan, hanya tangible asset saja yang dapat mempengaruhi intellectual capital secara langsung dan kinerja keuangan sekarang secara tidak langsung. Berdasarkan hasil penelitian ini menunjukkan perlu dilakukan audit sumber daya manusia sehingga dapat ditetapkan alokasi kebutuhan anggaran bagi intangible asset-nya. Abstract: This research is aimed at the budget in the form of intangible assets (human resources) and fixed assets and inventories that are predicted to affect intellectual capital, current and future financial performance, as well as key performance indicators. Budget allocation as a priority barometer in developing intellectual capital is aimed at meeting financial performance for the organization's main performance indicators. The population that is also a sample is 30 units and architecture at UIN Walisongo Semarang. The sampling method uses a saturated sample technique that takes the entire population. The data used is secondary data in the form of annual reports and performance indicator reports for 2019-2020. Data analysis using path analysis. The results of this study were that the 2019 State Budget allocation of UIN Walisongo only focused on tangible assets by 82%, while 18% was allocated for intangible assets. Intangible assets do not affect all relationships, only tangible assets can directly affect intellectual capital and current financial performance indirectly. Results Based on this research, it is necessary to conduct an audit of human resources so that they can determine the allocation of budget requirements for intangible assets.

scholarly journals The return on assets method for intellectual capital and application in Istanbul Stock ExchangeHesaplanmış maddi olmayan değer yöntemi ile entelektüel sermayenin hesaplanması ve Borsa İstanbul’da bir uygulama

2016 ◽  
Vol 13 (3) ◽  
pp. 4675
Author(s):  
Tayfun Deniz Kuğu
Keyword(s):  
Intellectual Capital ◽  
Development Process ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Return On Assets ◽  
Industry Development ◽  
Tangible Assets ◽  
Istanbul Stock Exchange ◽  
Physical Assets

Industry development process based on the information of the physical assets must be incline toward. In this regard, enterprises as well as tangible assets, intangible assets they have is a growing importance. In this case, the measurement of intangible assets for businesses, evaluating and comparing with competitors constitutes necessity. In other words, it is necessary for the existence of intellectual capital business. ÖzetSanayinin gelişim süreci fiziksel varlıklardan bilgiye dayalı varlıklara yönelmeyi zorunlu kılmaktadır. Bu bakımdan işletmelerin maddi duran varlıklarının yanı sıra, sahip oldukları maddi olmayan duran varlıkları da artan bir öneme sahip olmaktadır. Bu durum işletmeler için maddi olmayan duran varlıklarının ölçülmesi, değerlendirilmesi ve rakipleri ile kıyaslanması zorunluluğunu oluşturmaktadır. Bir başka deyişle, Entelektüel sermaye işletmelerin varlığı için gereklidir.

Methods of evaluation of intangible assets and intellectual capital

2017 ◽  
Vol 18 (3) ◽  
pp. 470-485 ◽  
Author(s):  
Marilei Osinski ◽  
Paulo Mauricio Selig ◽  
Florinda Matos ◽  
Darlan José Roman
Keyword(s):  
Strategic Management ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Content Type ◽  
Current Topic ◽  
Methods Of Evaluation ◽  
Competitive Model ◽  
Knowledge Intensive ◽  
A Company ◽  
A Current

Purpose The competitive model has changed. In this context, society entered into an era in which intangible assets are the greatest assets of a company. However, some gaps and uncertainties are presented in the literature as to understand the value of a company based on knowledge intensive activities. The purpose of this paper is to analyze the methods of evaluation of intangible assets in the context of business, economic and strategic management. Design/methodology/approach This is a qualitative research. This research is characterized as descriptive, bibliographic, inductive. Findings The main results of this research can highlight the existence of valuation methods of intangible assets intended for specific industries, as public and/or private, that can be better aligned to the context of business; economic and/or strategic management. Originality/value It was found that intangible assets are a current topic and increasingly addressed in the literature.

Intellectual capital, learning, and knowledge management in agrifood supply chains

2003 ◽  
Vol 3 (2) ◽  
pp. 75-80 ◽  
Author(s):  
Thomas Sporleder ◽  
H. Christopher Peterson
Keyword(s):  
Knowledge Management ◽  
Supply Chain ◽  
Brand Equity ◽  
Corporate Strategy ◽  
Food System ◽  
Intangible Assets ◽  
Sustainable Competitive Advantage ◽  
Network Embeddedness ◽  
Tangible Assets ◽  
Evolutionary Phase

The dynamics of the food system are rapidly evolving so that intangible assets are relatively more important than tangible assets. This evolving shift in the basis of rivalry among firms puts increasing demands on corporate strategy. A future challenge for agrifood firms is to embrace strategy that includes, at least conceptually, knowledge as a strategic asset of a firm. Knowledge and its management are emerging in contemporary thought as a potential source of sustainable competitive advantage. This analysis begins by examining the next evolutionary phase in supply chain integration as a learning supply chain. Conceptually a learning supply chain offers the significant benefits of a truly agile, dynamic response capability for end-users and a fair distribution of returns to all chain participants. The focus then turns to the relationships between network embeddedness and the strategic mix between exploitation and exploration, using knowledge management logic. Managing knowledge for agrifood firms implies the creation and commercialization of intangible assets. The analysis indicates that significant intangibles in the form of brand equity may influence supply chain characteristics to strong ties and close networks. Some specific characteristics would be relatively high embeddedness, high social capital, more easily exchanged tacit knowledge, and higher levels of trust.

scholarly journals Production Potential of a Gas Producing Complex: Concept, Structure, Factors of Its Formation and Usage

2020 ◽  
Vol 4 (46) ◽  
pp. 265-272
Author(s):  
N. M. Andriishyn ◽  
Keyword(s):  
Intellectual Capital ◽  
Production Capacity ◽  
Production Equipment ◽  
Gas Production ◽  
Practical Implementation ◽  
Sustainable Competitive Advantage ◽  
Production Potential ◽  
Balanced Development ◽  
Complex Concept ◽  
Tangible Assets

The economic essence of the category "production potential of the gas producing complex" is substantiated from the standpoint of the systemic approach and a set of factors determining the ability of a gas producing complex (GPC) to perform its functions. Methodical approaches to the interpretation of the essence and structure of production potential are determined, taking into account the peculiarities of gas production. It is noted that the study of production capacity should begin with its production functions, which are provided by the resource potential of a company. The relationship between production factors and production resources lies in the fact that only resources that can be used in production are considered factors of production. Emphasis is placed on the fact that the success of the gas producing complex today is not only determined by the size of hydrocarbon deposits and the availability of modern technologies or production equipment, but mainly by available intellectual capital, which includes leading technicians, gas producing management and programmers together with the software developed by them. It has been proven that a company’s ability to effectively use intellectual capital is a sustainable competitive advantage in ensuring future balanced development, as intellectual capital is based on the accumulation and use of knowledge, ideas and information that are specific to a particular company. The effect of their usage is the result of practical implementation of this knowledge, transfer of experience to young employees of the company, and interaction with partners and contractors. Nowadays, intellectual capital affects the investment attractiveness and competitiveness of the GPC to a greater extent than tangible assets and financial capital. Therefore, the production potential of a gas producing complex cannot be confined to its production capacity (tangible equity). It is concluded that, based on the fact that the GPC is a system of enterprises and organizations with different functions, its production potential should be considered systematically, comprehensively assessing the quantity and quality of resources that create opportunities for all its structural units to perform their functions in accordance with strategic development tasks.

Intangible Assets Identification and Valuation in a Company

2013 ◽  
Vol 371 ◽  
pp. 842-846
Author(s):  
Luminita Maria Gogan ◽  
Anca Draghici
Keyword(s):  
Intellectual Capital ◽  
Intangible Assets ◽  
Evaluation Model ◽  
Corporate Value ◽  
Functional Characteristics ◽  
Knowledge Intensive ◽  
A Company

Intangibles have emerged in the last decade as an important issue among companies accounting theories. Accounting, as it is currently practiced, has lost much of its ability to inform as businesses have become more and more knowledge intensive. Intangible assets are now variously estimated to currently constitute 60-75 percent of corporate value, on average. In this context, the purpose of this paper is to present an analysis of the most known intellectual capital evaluation model, according the following criteria: concepts, functional characteristics, operational performances, limitations. Then intellectual capital was analyzed in the case of X Company. As a conclusion we can say that intelactual capital assessment capital makes a company more efficient, more profitable and competitive.

scholarly journals Structural capital and its importance for the intellectual capital of an organization

e-mentor ◽  
2021 ◽  
Vol 92 (5) ◽  
pp. 61-68
Author(s):  
Mirosław Wójcik ◽  
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Intangible Assets ◽  
Knowledge Gap ◽  
Strategic Factor ◽  
Structural Capital ◽  
Strategic Value ◽  
Internal Structures ◽  
Key Factor ◽  
Strategic Role

This article aims to confirm the thesis that structural capital (SC) is a framework for intellectual capital (IC) in an organization, which allows proper configuration of intangibles. Therefore, in the resource-based view, it determines its strategic character. Realizing such a goal, the author pays attention to the nature of relations and connections of individual components of IC, indicating that the SC is the key factor creating intangible assets of the organization as a source of gaining competitive advantage. The reason for taking up this issue is that, despite years of discussion in the field of IC, there are still unanswered questions concerning the management of an organization’s IC, especially its planning and development. The defined knowledge gap concerns the source of strategic characteristics of IC, which, according to the resources-based view, are its rarity, originality, and the inability to be substituted or copied. The ability to shape the strategic value of intangibles makes this source itself a strategic resource and identifying it can change the way we understand IC. To achieve the paper’s aim and fill the knowledge gap, the author asks whether SC can provide the characteristics of IC mentioned above and whether the strategic character of IC can be achieved independently of SC. The review and theoretical considerations are based on the analysis of the literature on IC and selected issues that are not directly related to IC, but of which the subject touches on the intangible assets commonly considered to be components of IC, such as the issue of functional stupidity, knowledge management, or resource theory. As a result of the analysis of features and characteristics of SC, the author concludes that SC is responsible for the efficient use of relational capital and human capital potential and thus is a strategic factor shaping IC as a source of achieved competitive advantage. The topic has important practical implications because by confirming the strategic role of SC, indicates the sources of effective creation of IC and its potential. The discussion also identifies directions for further research on this issue, especially the operationalization of IC and its analysis in organizations’ internal structures.

scholarly journals A Normative Approach to Valuation, Value Enhancement and Financial Statement Reporting of Intellectual Capital

2020 ◽  
Vol 3 ◽  
pp. 25-52
Author(s):  
Michael So ◽  
◽  
Janek Ratnatunga
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Theoretical Foundation ◽  
Empirical Studies ◽  
Economic Value ◽  
Financial Statement ◽  
Sustainable Competitive Advantage ◽  
Normative Approach ◽  
Reporting Framework ◽  
Tangible Assets

Intellectual capital (IC) is increasingly seen as an integral part of a firm’s value-creating processes and an essential strategic asset in creating corporate sustainable competitive advantage (Bukh, 2003; Chen, Cheng & Hwang, 2005). Nevertheless, reporting on IC is currently inconsistent, incomparable, and incomplete because of a lack of consistent guidance. This paper presents a normative IC valuation and reporting framework based on the Capability Economic Value of Intangible and Tangible Assets (CEVITA) approach (Ratnatunga, Gray & Balachandran, 2004). The proposed framework enables the application of CEVITA to the valuation of intellectual capital capability and provides a theoretical foundation for future empirical studies in relation to IC valuation and reporting.

The Potential Role of Intellectual Capital in the Process of Accounting Convergence

2021 ◽  
pp. 12-23
Author(s):  
Ionica Oncioiu
Keyword(s):  
Fiscal Policy ◽  
Intellectual Capital ◽  
Potential Role ◽  
Intangible Assets ◽  
Business Development ◽  
Senior Staff ◽  
Key Factor ◽  
And Control ◽  
Accounting Convergence

Today, wealth is created through a combination of intangible assets that generate value. Companies have recognized the importance of intellectual capital as a key factor for success, looking for ways to measure and control this factor. Differences arising between accounting and fiscal policy will be resolved over accounting. This chapter shows that it is imperative to review fiscal policy on intangibles so as to reach the premises of business development, reestablishing profit growth, and fiscal parameter supervision by senior staff. The transition to accounting convergence is very complex and will result in terms of significant accounting policies and principles that are currently in project of the IASB and FASB.

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