scholarly journals The impact of the level of market competition intensity on enterprises activities in area of intellectual capital

Management ◽  
2017 ◽  
Vol 21 (2) ◽  
pp. 49-61
Author(s):  
Rafał Prusak
Keyword(s):  
Intellectual Capital ◽  
Intangible Assets ◽  
Traditional Approach ◽  
Market Competition ◽  
Competition Intensity ◽  
Material Resources ◽  
Level Of Satisfaction ◽  
Building Market ◽  
The Impact

Summary Market activity for today’s enterprises means continuing work to better understand the needs of their customers to provide them higher level of satisfaction. Building market advantages using a traditional approach based on material resources becoming less and less likely to increase competitiveness over the long term. The ability to use intangible assets, often more difficult to identify and manage, is becoming a key issue. Proper management of intangible assets can provide the company with unique market advantages that are unique, durable, and difficult to imitate. This study attempts to characterize selected dependencies between the nature of the actions undertaken by enterprises in relation to intellectual capital in the context of the strength of the level of competition in the market.

The effect of intangible assets on sustainable growth and firm value – Evidence on intellectual capital investment in companies listed on Bucharest Stock Exchange

Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Catalin Ionita ◽  
Elena Dinu
Keyword(s):  
Growth Rate ◽  
Intellectual Capital ◽  
Firm Value ◽  
Intangible Assets ◽  
Stock Exchange ◽  
Listed Companies ◽  
Sustainable Growth ◽  
Content Type ◽  
Sustainable Growth Rate ◽  
The Impact

PurposeThe present study investigates the connection between company investments in intellectual capital (IC) and how they translate into financial value. The aim is to test the impact of intangible assets on the firm value and its sustainable growth.Design/methodology/approachThe research employs computation models to determine the sustainable growth rate (SGR) and the firm value (FV), and by using the ordinary least squares (OLS) model through a linear regression assesses the relationship between the dependent variables and expenditures on intangibles like R&D, IT programs and patents. A sample of 42 companies has been selected out of the 78 listed at Bucharest Stock Exchange (BSE), based on the appropriateness of the information disclosed in the financial reports for the period 2016–2019.FindingsThe results show that intangibles classified as innovative competences (R&D and Patents) do not have a positive impact on SGR and FV in listed companies from Romania. Moreover, R&D has a negative and significant effect on FV, while IT Programs have a positive and significant impact on FV, but not on the SGR. Variables categorised as economic competencies (Brands, Shares held in associates and jointly controlled entities) and firm structure-specific variables (Leverage, Firm Performance) seem to have a significant effect on SGR and FV. Shares held in associates and jointly controlled entities is the variable that can have the biggest impact when it comes to FV for companies listed at BSE.Research limitations/implicationsDue to non-disclosure of specific information by some companies, or lack of investments in intangibles the sample had to be reduced and does not cover all listed companies.Practical implicationsCompanies listed on the Regulated Market from the Bucharest Stock Exchange should maintain their scale of liabilities at a reasonable level when financing intangible assets in order to ensure corporate long-term and sustainable development. Also, these companies should maintain awareness about the importance of intangible assets and invest more in specific sub-components, in order to sustain competitive advantage. Recognizing the roles of intangibles, managers need to develop strategies to invest in profitable intangibles by reasonably allocating their limited resources, in order to achieve sustainable growth and increase company success.Originality/valueStudies concerning the relation between investments in intangibles and sustainable growth rate and firm value of listed Romanian companies are very scarce. This paper reveals new research, never before undertaken, concerning expenditures on intangibles by Romanian companies and the valuation of such investments on Bucharest Stock Exchange.

scholarly journals Intangible Assets and Economic Growth in Nigeria: An Empirical Investigation

2021 ◽  
pp. 74-84
Author(s):  
Okumoko Tubo Pearce ◽  
Cookey Ibeinmo Friday ◽  
Question Emomotimi Mcdonald
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Intellectual Property ◽  
Intellectual Capital ◽  
Significant Relationship ◽  
Service Sector ◽  
Intangible Assets ◽  
Government Expenditure ◽  
Series Data ◽  
The Impact

This work examines the impact of intangible assets on economic growth in Nigeria, using time series data from 1990 to 2019. Relevant theoretical and empirical literatures were reviewed. Government expenditure on research and development, intellectual capital proxied by human capital stock, intellectual property and service sector employment were regressed as independent variables against the real GDP (proxy for economic growth) as the dependent variable. Secondary data were used for this work. The ARDL bound test was adopted in estimating the model. We discovered that government expenditure on R&D, intellectual capital and intellectual property do not have significant relationship with economic growth proxied by RGDP; meanwhile service sector employment had a significant relationship with economic growth in Nigeria. Also, government expenditure on R&D; and service sector employment were rightly signed; while intellectual capital and intellectual property were not rightly signed. This implies that when government increases its expenditure on R&D, it will result to economic growth, so also service sector employment in the long-run. Meanwhile, an increase in intellectual capital and intellectual property will reduce RGDP. We therefore propose that government should upgrade its spending on R&D so as to boost intellectual capital and property. The government should also create employment for the stock of human capital. Finally, government institutions such as producers’ protection agencies should be empowered to protect intellectual properties in Nigeria.

Competition intensity as moderator for NPD success

2019 ◽  
Vol 11 (4) ◽  
pp. 618-647
Author(s):  
Tor Guimaraes ◽  
Ketan Paranjape
Keyword(s):  
New Product Development ◽  
Success Factors ◽  
Multivariate Regression Analysis ◽  
Manufacturing Companies ◽  
Competition Intensity ◽  
Content Type ◽  
Intense Competition ◽  
Proposed Model ◽  
The Impact

Purpose This study aims to test the moderating impact of competition intensity on the relationships between the new product development (NPD) success factors and company success in NPD. Design/methodology/approach A mailed questionnaire collected information from 311 manufacturing companies to test the proposed model with moderated multivariate regression analysis. Findings The results corroborate the impact of competition intensity on the relationships between the success factors individually and company success performing NPD. Research limitations/implications Despite the relatively broad scope of the proposed model, other success factors and/or moderating and mediating variables may also be important. As such, these variables should be identified and tested in future studies. Practical implications In practice, competition is viewed as an unavoidable factor beyond the control of managers within a company. Undeniably, competition is a great stimulant for business innovation. Thus, it is important for managers to understand the need, to focus attention managing the success factors most important to increase the likelihood of long-term success for NPD projects, particularly in markets under intense competition. Originality/value While the study is grounded on well-established literature, its major constructs originated from relatively isolated areas of knowledge. The major contribution is empirically testing an integrated model for variables considered important for success in NPD and the moderating effect of intense competition.

scholarly journals Intellectual Capital Change Management in the Construction Industry—The Case of an Inter-Organisational Collaboration

2021 ◽  
Vol 7 (3) ◽  
pp. 199
Author(s):  
José Vale ◽  
Nádia Barbosa ◽  
Rui Bertuzi ◽  
Ana Maria Bandeira ◽  
Vera Teixeira Vale
Keyword(s):  
Construction Industry ◽  
Intellectual Capital ◽  
Competitive Advantages ◽  
Traditional Media ◽  
Intellectual Assets ◽  
Changes Over Time ◽  
The Impact ◽  
Over Time

Nowadays, due to the complexity of the relationships with external entities, along with the importance that traditional media and the innovative social media have in creating competitive advantages, it is necessary for companies to collaborate in order to create Intellectual Capital (IC). Although collaboration is crucial to create IC, there is a paucity in literature regarding the effects that a specific type of collaboration may have on the IC of an organisation, specifically a franchising with a mediatic actor. Moreover, literature addressing IC creation and destruction over time is scarce, especially when applied to the construction industry. This paper’s goal is twofold: understanding the longitudinal changes of a construction SME’s Intellectual Capital, regarding its creation and destruction; analysing the impact that a specific inter-organisational collaboration franchising—with a mediatic actor may have on such IC. A single in-depth case study was conducted, allowing to conclude that the actions of an organisation can develop both Intellectual Assets and Intellectual Liabilities. It was also concluded that inter-organisational collaboration, through a franchise with an actor with experience in communication, can generate, in the long term, positive and innovative effects regarding the different IC components, namely the Relational one. More specifically, the paper allowed to ascertain that an organisation’s IC changes over time in a dynamic fashion, i.e., Intellectual Liabilities which emerged before an innovative collaboration can be transformed into Intellectual Assets and create competitive advantages. This paper contributes to stress the importance of managing IC, not only when it is created, but namely in when it can be destroyed, in a context of inter-organisational collaborations applied to a construction SME.

scholarly journals The concept of the mechanism of managing the intellectual resources of the innovative active enterprises’ employees (experience of Great Britain)

2020 ◽  
Vol 4 (1) ◽  
pp. 24-32
Author(s):  
Svetlana Drobyazko ◽  
Yurii Malakhovskyi ◽  
Ruslana Zhovnovach ◽  
Mohamed Mohamed
Keyword(s):  
United Kingdom ◽  
Intellectual Capital ◽  
Innovation Policy ◽  
Demand Model ◽  
Economic Mechanism ◽  
New Knowledge ◽  
Knowledge Intensive ◽  
Research And Education ◽  
The Impact

Introduction. Management of competencies of innovative workers in specific conditions of functioning of innovatively active enterprises as producing ecosystems is considered as the dominant direction of managing the process of production of new knowledge, localized within a specific organization, which can increase the consumer value of final consumption goods/services in the process of global value chains’ formation. Aim and tasks. The purpose of the publication is to summarize United Kingdom practices in the management of intellectual resources of innovatively active enterprises. Results. The purpose of the United Kingdom science and innovation policy is to develop the professional skills of the population, to organize world-class research and education, to apply knowledge and skills to develop a competitive economy. The established network of science and innovative policy management entities is in line with the open innovation demand model, which implies the establishment of effective cooperation between universities, business organizations, suppliers, consumers. The generalized model of organizational and economic mechanism of regulation of intellectual resources of innovatively active enterprises personnel as knowledge-intensive sociocentric networks is presented in the form of a structured system focused on the behavioral aspects of the activity of subjects of production of new knowledge of means of regulatory and indicative influence on the configuration of regulatory objects that are subordinated to the sub-system in the conditions of global competition. Conclusions. To fully meet the requirements of innovating the organizational and economic mechanism regulation of intellectual capital’ innovatively active enterprises corresponds to the incorporation into the toolkit of realization of the purpose and tasks of development of the means of forecasting the future state, structure, prospects of increasing the value of its elements. This trend of modernization provides an opportunity to increase intellectual capital through the introduction of Foresight procedures for analysing the impact on it of scientific and technological innovations, formulating and modernizing the mission of forecasting inclusive social capital, comprehensive specification of the regulatory sector, taking into account economic macro and mesoscenarios. At the same time, the proposed means increase the degree of scientific substantiation of the processes of regulation of enterprise development by implementing the analysis of alternative scenarios of intellectual capital growth of innovatively active ecosystems of microeconomic level, open the possibility of developing technological roadmaps for the implementation of targeted programs for long-term research, long-term research development of themes and programs for the implementation of applied social technologies at the request of stakeholders.

The Impact of Digital Technologies on the Development of Entrepreneurship in Regional Socio-Economic Systems

2020 ◽  
Vol 26 (6) ◽  
pp. 619-628
Author(s):  
N. P. Golubetskaya ◽  
E. V. Ushakova ◽  
T. V. Chirkova
Keyword(s):  
Intellectual Capital ◽  
Digital Technologies ◽  
Global Market ◽  
Economic Systems ◽  
Digital Space ◽  
Progressive Development ◽  
Goods And Services ◽  
New Organizational Forms ◽  
The Impact

The presented study focuses on a comprehensive analysis of digital technologies in the context of formation of priority directions for the development of regional socio-economic activities and deepening of business segments with allowance for the creation of innovative potential of economic entities.Aim. The study aims to develop a comprehensive approach to the formation of scenario approaches for the development of regional socio-economic systems in the context of the structural reorganization of the global economy.Tasks. The authors identify directions for the development of regional socio-economic systems in the context of digital technologies; assess the potential for entrepreneurship in segments that ensure the progressive development of regional socio-economic systems; develop recommendations for improving the performance of economic entities at the regional level of management.Methods. This study uses general scientific methods of cognition to comprehensively analyze the impact of digital technologies on the operation of regional economic entities within a common information space.Results. Business structures serve as a driving force in the use of information and communication technologies as they make it possible to increase the efficiency of production and provide competitive advantages in the long term. The structure of the global market of goods and services is transforming due to the rapid development of innovative technologies that accelerate the transition from the idea to the final product, its distribution and service. The global market determines the vector of progressive development based on the achievements of digital technologies in the long term. New organizational forms of regional socio-economic activity have formed under the influence of Internet technologies, reflecting the transition from marketing assessment of consumer behavior towards business models based on intellectual capital.Conclusions. The world’s largest IT companies have become major players in the international market of goods and services within the global digital space. Networking between economic entities is influenced by the dynamically developing active investment activity of leading enterprises. The capital market is currently transforming due to the increasing investment in international projects and programs by consortia and integration groups with the participation of major companies and countries that have the potential of using digital technologies. Global investment flows tend to increase in the segment associated with “mass-market” technologies. New opportunities for the development of entrepreneurship have emerged – for example, in the field of online games, e-commerce, and storage of database arrays. This process will inevitably reinforce the importance of global enterprises using intellectual capital and comprehensive analysis of data of the digital space of regional socio-economic systems. Global and local digital markets are transforming entrepreneurship, creating new organizational forms for its implementation in regions that have the potential to create intellectual capital as a tool for solving national socio-economic problems.

Intellectual Capital in the Light of CREATIVITY and competitiveness: an Overview of Intangible Assets of Organizations on the Example of Ukraine

2020 ◽  
Vol 9 (2) ◽  
pp. 57-68
Author(s):  
Aleksey Myasoedov
Keyword(s):  
Intellectual Property ◽  
Intellectual Capital ◽  
Technological Progress ◽  
Intangible Assets ◽  
Computer Software ◽  
Historical Review ◽  
Capital Social ◽  
Software Products ◽  
Structural Capital ◽  
The Impact

This article discusses several issues related to intellectual capital, including a historical review, interest in elusive and intangible assets, and the impact of recent technological progress related to the development of information technology. Ralph Styer, CEO of Johnsonville Foods Company, was the first to use the term “intellectual property” to refer to an organization’s intangible assets. This document also defines the concept of intellectual property, which is the totality of all the knowledge that organizations have that helps them achieve their goals. Intellectual property includes ideas, inventions, technologies, general knowledge, computer software products and programs, projects, data skills, processes, creativity and applications in all organizations. Intellectual capital is knowledge that can be converted into profit. The components of this concept were defined as follows: structural capital, human capital, social capital and psychological capital. The article also discusses various definitions presented by a number of scholars related to intellectual capital, including: Edvinsson & Malone, K.E. Svieby, Y. Malhorta, T. Stuart, Depres and Channel, as well as Mackenzie and Winkelen. The article concludes that specific issues regarding companies and the nature of the market do not allow for certain results that can be generalized by comparing modern administrative trends or attitudes that define intellectual capital as intangible assets.

Strategic characterization of process assets based on asset quality and business impact

2017 ◽  
Vol 117 (8) ◽  
pp. 1720-1737 ◽  
Author(s):  
Maria-Isabel Sanchez-Segura ◽  
Alejandro Ruiz-Robles ◽  
Fuensanta Medina-Dominguez ◽  
German-Lenin Dugarte-Peña
Keyword(s):  
Intellectual Capital ◽  
Intangible Assets ◽  
Point Of View ◽  
Strategic Decision ◽  
Real Case ◽  
Content Type ◽  
Business Goals ◽  
Asset Quality ◽  
The Impact ◽  
Organizational Objectives

Purpose The purpose of this paper is to present the strategic intangible process assets characterization (SIPAC) methodology illustrated by an example of its application to the field of information technology (IT). This is a pioneering methodology for characterizing the impact and quality of intangible process assets and intellectual capital as levers to achieve organizational objectives. This strategic intellectual capital approach will help to identify both intangible assets and indicators geared to meeting organizational objectives. This is of vital importance since the success of an organization can be construed in terms of goal achievement. Design/methodology/approach The paper illustrates an example of the step-by-step application of the proposed methodology at an IT company. The aim is to describe its use in a real case so that other companies can benefit from the replication of the methodology used. Findings The proposed methodology (SIPAC) that the authors have designed and applied has been found to be useful and provide an insightful new point of view for strategic decision making in the IT industry taking into account intangible process assets. Practical implications The proposed methodology has been exemplified in a real case. This should help organizations to use the methodology to replicate the results. Originality/value Each and every organization has know-how represented by intangible assets. This paper meets an identified need to use intangible process assets as levers to help organizations achieve their business goals.

scholarly journals Risk, Financing, Efficiency of Investments Implemented by Contemporary Enterprises

2021 ◽  
pp. 107-115
Author(s):  
Stanisław Szmitka ◽  
Keyword(s):  
Joint Ventures ◽  
Return On Investment ◽  
Intangible Assets ◽  
Free Market ◽  
Working Capital ◽  
Legal Costs ◽  
Investment Process ◽  
The Impact ◽  
Current Operating

In the broad sense, any action that is taken in the hopes of raising future revenue can also be considered an investment. An investment always concerns the outlay of some asset today – money or tangible and intangible assets – in hopes of a greater payoff in the future than what was originally put in. The investment compensates for the time of “freezing” of funds, as well as the risk taken in the investment process. Integral components in each investment process are: a) time (recovery of benefits and capital commitments); b) circulation (allocation of general or own capital); c) risk (possibility of excess of actually incurred expenses over planned costs); d) benefits (expected effects from investment realization). Investments can be defined in the light of the above factors, which are fraught with the risk of long-term allocation of investment costs in order to recover benefits. Investments are such expenditures of funds, in which there is a long-term commitment of funds of money. The scale of the costs of their performance is higher than in the current, operating activities of businesses, and the impact of investment on the efficiency of operations and competitiveness is mostly longer. Investments increase not only modernized and new means of durability, intangible and legal costs, but also the value of working capital. This work is devoted to presentation and analysis of the process of financing investments made through joint ventures in the realities of the free market in a changing environment. Considerable attention was paid to the assessment of risk and efficiency of enterprises activities. It was found that the amount of risk is influenced by various factors, such as the complexity of the investment process and the instability of the environment in which the project is implemented. This creates uncertainty about the expected future benefits and often makes it impossible to assess the factors that affect the return on investment.

scholarly journals Determining the Impact of Intangible Assets on Intellectual Capital and Competitive Advantage in Banking

2020 ◽  
Vol 9 (1) ◽  
pp. 105-144
Author(s):  
Ramla Sadiq ◽  
Safia Nosheen
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Banking Sector ◽  
Intangible Assets ◽  
Robustness Analysis ◽  
Secondary Data ◽  
Annual Reports ◽  
Islamic Banks ◽  
Conventional Banks ◽  
The Impact

This paper carries out the empirical tests in order to validate the hypothesis that resource intangibility, in the form of intangible assets, contributes towards the intellectual capital, and the competitive advantage in the banking sector. Furthermore, it also determines whether the intangibility of a banks' resources contribute towards the sustainability of the competitive advantage. Finally, it determines which aspects of the banking performance, the intangible assets actually contribute to. In this context, this research utilizes the secondary data, which is extracted from the annual reports of commercial banks that are listed on the primary stock exchanges of Pakistan. The sample that is taken into consideration is divided into two main categories in order to carry out the analysis. These categories include the classification into the Islamic banks and the conventional banks. The Islamic window operations have not been included in the analysis,as the details required for the variable calculations are not consistently available. Moreover, this bifurcation in the sample is also a unique aspect of this research,as the prior literature primarily focuses on the determinants of the intellectual capital in the banking sector. However though, there is no direct study regarding the differences in the resource intangibility in the Islamic banks and the conventional banks, and their subsequent impact on the intellectual capital and competitive advantage. The time frame for the analysis is taken from the year FY2008-FY2018 .Also,the findings of this study lead to striking implications for both the Islamic banking theory and the managerial practices in the banking sector of Pakistan. The resource intangibility is to be managed very differently across both categories. Where the intangible assets represent a significant contribution to both the intellectual capital and the competitive advantage for Islamic banks, the yal sore present a negligible impact on the intellectual capital,and the competitive advantage for conventional banks. This holds true for the conventional performance measures that are taken for the banking sector as well, as shown in the robustness analysis.

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