scholarly journals Intellectual Capital: ISVA, the Alternative Way of Calculating Creating Value in Agricultural Entities—Case of Poland

2020 ◽  
Vol 12 (7) ◽  
pp. 2645
Author(s):  
Magdalena Kozera-Kowalska
Keyword(s):  
Intellectual Capital ◽  
High Efficiency ◽  
Value Added ◽  
Production Costs ◽  
Total Production ◽  
Working Capital ◽  
Agricultural Enterprises ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Long Run

In the knowledge-based economy, knowledge is regarded as a strategic resource that helps entities to become market leaders. This strategy has been successfully used for years by companies operating in various sectors of the economy. The exception, however, is agriculture, which has been seen for years as a sector with low knowledge intensity and is one that is skeptical about the possibility of using knowledge. This is important especially in that the use of it is, for many managers, still unconscious, and, therefore, this factor remains unused in practice. This paper describes the Intellectual Sources of Value Added (ISVA), an alternative method for analyzing the productivity of tangible and intangible inputs affecting the value-adding process in agricultural holdings. The reasons for developing the concept of that indicator were the imperfections found in the Value-Added Intellectual Coefficient (VAIC™), a widely adopted method authored by A. Pulić. However, the index of efficiency of intellectual capital (VAIC), recognized as suitable for research purposes, demonstrates certain methodological imperfections, including the simultaneous use of resource- and flow-based values. In addition to certain relevant reservations, the above has other consequences, including the declining trend followed by the efficiency of working capital calculated using this formula. In a situation where working capital is observed to grow, this would mean that funds are irrationally invested in assets with a decreasing capacity to add value. This results in drawing a false picture of economic realities of agricultural holdings which, by nature, demonstrate a high share of physical asset consumption in total production costs. As another consequence, the calculated value of the indicator becomes unacceptable in the long run. The use of the ISVA indicator allowed the author to obtain homogeneous results in terms of methodology and confirming the regularities observed in practice. In addition, the research confirmed not only the fact that agricultural enterprises have intellectual capital resources, but also the high efficiency of their use, exceeding the efficiency of use of traditional ones. It also indicates the desirability of continuing research using measures that will enable the monitoring of intellectual capital and their use in agricultural enterprises.

scholarly journals INTELLECTUAL CAPITAL AS STRATEGIC PERFORMANCE OF THE ORGANIZATION

2018 ◽  
Vol 28 (5) ◽  
pp. 1545-1551
Author(s):  
Svetlana Trajković
Keyword(s):  
Competitive Advantage ◽  
Intellectual Capital ◽  
Positive Relationship ◽  
Business Environment ◽  
Modern World ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Long Run ◽  
New Knowledge ◽  
The World

The ability to manage knowledge becomes an increasingly important strategic activity in today's so-called. knowledge economy. To prioritize the preservation and improvement of intellectual capital, creating and disseminating knowledge within a modern organization, is becoming an increasingly decisive factor in achieving and maintaining its competitive advantage. The only viable advantage of a modern organization comes from what the company knows and how effectively is used what it knows and how quickly it acquires and uses new knowledge. There is a positive relationship between the intellectual capital and the performance of an organization. Intellectual capital is in correlation with the organization's future performance, and the growth rate of intellectual capital is in a positive relationship with the organization's performance, while the contribution of intellectual capital to improving the organization's performance varies, and is the result of strategic management of the organization itself. In this context, only the learning organization, which is constantly looking for new, innovated and / or enhanced knowledge in the field of activity, has the conditions, chances and opportunities to move forward in the real world. In the modern world, the world of a knowledge-based economy, a competitive advantage that is sustainable on the narrow paths, can only be achieved if the organization takes a lasting commitment to learn, invest in people and their intellectual potential, to support the need of people to continuously explore, learn and accept new, more complete and applicable knowledge. Regarding this, investing in the intellectual capital in the short term may be a significant cost to the organization, but in the long run, any investment in the development of intellectual capital - new knowledge - both scientific, general theoretical, and practically applicable will have a multiplier positive effect on the future business of the organization. The experience of organizations from the world of work has unambiguously confirmed this. Namely, companies that base their business on exactly human cognitive and scientific potentials have the advantage, that is, the world's leading companies are in terms of profit. First of all, these are companies in the field of low-tech technologies, and they are not quite necessary because they are notorious. But, from the experience of such organizations, they can and / or have to learn all the organizations they intend to succeed in a modern, very turbulent business environment. This is especially important for those organizations that intend to be leaders in an area or branch of business. Today, leadership is not realized solely on the basis of the number of pieces produced by a product or on the basis of the number of transactions with the environment, on the contrary, the leader is the organization of work that is imposed as an organization where the intellectual, and parallel with it, also the human capital prevails. Because, it is known, also in practice, that only when people feel in a certain organization friendly, only then do they give their maximum contribution. Only in conditions of complete freedom, some seemingly lucid ideas become "full of hits" in realizing and meeting the needs of the market and people who market it.

scholarly journals The mediating effect of financial performance on the relationship between intellectual capital & market share: Evidence from Tehran stock exchange

2017 ◽  
Vol 7 (4-1) ◽  
pp. 153-162
Author(s):  
Seyed Mohamad Fahimi ◽  
Hossein Fakhari
Keyword(s):  
Financial Performance ◽  
Market Share ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Value Added ◽  
Mediating Effect ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Research Findings ◽  
The Relationship

Intellectual capital has an important role in this knowledge based economy era. The purpose of this study is to examine the mediating effect of financial performance on the relationship between intellectual capital and market share in the listed Companies in the Tehran Stock Exchange in this study to assess the intellectual capital, the rate of value-added intellectual capital that developed by Pulic (1998) is used. The sample included 99 companies listed in the Tehran Stock Exchange, for a period of five years from 2011 to 2015. The research findings show a significant positive relationship between intellectual capital and market share. Also the results show that there is no mediating effect of financial performance in the relationship between intellectual capital and market share.

scholarly journals Intellectual Capital: How Do Islamic Ethics Rejuvenate It?

2017 ◽  
Vol 13 (3) ◽  
pp. 70
Author(s):  
Sakinah Mat Zin ◽  
Ahmad Azrin Adnan ◽  
Iskandar Hasan Tan Abdullah
Keyword(s):  
Intellectual Capital ◽  
Small And Medium Enterprises ◽  
Value Added ◽  
Superior Performance ◽  
Competitive Advantages ◽  
Islamic Ethics ◽  
Knowledge Based ◽  
Product Innovations ◽  
Knowledge Based Economy ◽  
Medium Enterprises

In this era of knowledge-based economy, intellectual capital (IC) is considered as a critical component in an organizational effort to emphasize on accomplishing competitive advantages and enhancing value added for the organization. Besides concentrating only on new product innovations, small and medium enterprises should also be engaged in managing IC in accordance to Islamic teachings. An understanding to Islamic ethics and its upshots for superior performance facilitates entrepreneurs in managing IC strategically. This paper aims to re-scrutinize several contributions in Islamic ethics and IC in SME entrepreneurial researches, ascertain the main elements of IC as well as Islamic work ethics (IWE); and thus show how IWE is relevant for research in the area of IC.

scholarly journals Transition to the Knowledge-Based Economy within the Modernization Paradigm for the States in the Core and Semi-Periphery of the Global Economic System

2021 ◽  
Vol 3 (49) ◽  
pp. 117-123
Author(s):  
O. A. Dovgal ◽  
◽  
G. V. Dovhal ◽  
H. V. Serdiuk ◽  
◽  
...  
Keyword(s):  
Economic System ◽  
Intellectual Capital ◽  
Main Function ◽  
Economic Resource ◽  
The Core ◽  
Knowledge Based ◽  
Catching Up ◽  
Knowledge Based Economy ◽  
Innovative Model ◽  
Intellectual Production

Abstract: The article generalizes the features of modern transition from industrial to post-industrial (or knowledge-based) economy within the modernization paradigm for the states in the core and semi-periphery of the global economic system. It is proved that among the historical diversity of national modernization phenomena one can single out two alternative models: an innovative model and a catching-up one. It is substantiated that the innovative model is most typical for the countries forming the core of the world economic system, while the catching-up model is more typical for countries in the periphery of global development. It is revealed that modern intellectual production covers, first of all, economic sectors producing information and knowledge. At the same time, intellectual capital also functions in productive industries, influencing their indicators as well. That is why knowledge workers, who form the intellectual strata of society, are considered to be subjects of intangible intellectual production, the latter making up the core of knowledge economy. Their main function is to produce intellectual products (socially valuable knowledge), in contrast to groups, whose social function is to embody these values and knowledge. It should also be noted that concrete historical forms of knowledge objectivisation, ways of their reproduction and, accordingly, historical types of intellectual layers can differ considerably. It is concluded that knowledge-based economy is considered as a sphere of economic activity, which nowadays is characterized by intensive use of intellectual capital as the main economic resource, in the fields of material production as well.

Intellectual capital and firm performance in emerging economies: the case of India

2016 ◽  
Vol 26 (3) ◽  
pp. 410-430 ◽  
Author(s):  
Santi Gopal Maji ◽  
Mitra Goswami
Keyword(s):  
Firm Performance ◽  
Intellectual Capital ◽  
Value Added ◽  
Relative Importance ◽  
Content Type ◽  
Knowledge Based ◽  
Traditional Sector ◽  
Steel Sector ◽  
Capital Efficiency ◽  
The Impact

Purpose The purpose of this paper is to examine the impact of intellectual capital (IC) on Indian traditional sector and compare the relative importance of IC on corporate performance of Indian knowledge-based sector (engineering sector) and traditional sector (steel sector). Design/methodology/approach Secondary data on 100 listed Indian firms, comprising of 44 firms from the engineering sector and 56 from the steel sector, are collected from “Capitaline Plus” Corporate database for a period of 14 years from 1999-2000 to 2012-2013. IC and its components are computed using Pulic’s value-added intellectual coefficient model and firm performance is measured by return on asset. Fixed effect regression model is used to investigate the hypothetical relationship between IC and firm performance. Further, quantile regression is used to check the robustness of the results. Findings The results indicate that IC efficiency and physical capital efficiency are positively and significantly associated with the firm performance for both the sectors. Regarding the components of IC, the coefficient of human capital efficiency is positive and significant, but the present effort fails to disentangle any significant influence of structural capital efficiency on firm performance. However, the results indicate that the influence of IC efficiency on firm performance is significantly greater in case of knowledge-based sector than that of traditional sector. Practical implications The findings of the study are useful for the decision makers, as the results indicate that the IC plays crucial role in value creation not only for knowledge-based firms but also for the firms belonging to the traditional manufacturing sector. Originality/value In the Indian context, this is the first study to examine the relative importance of IC in a knowledge-based sector and a traditional sector using appropriate methodology.

scholarly journals Measurement of Intellectual Capital as Exemplified by Methods of Groups Based on the Roa Indicator and on Market Capitalization

e-Finanse ◽  
2017 ◽  
Vol 12 (4) ◽  
pp. 58-71
Author(s):  
Karolina Palimąka ◽  
Mateusz Mierzejewskl
Keyword(s):  
Intellectual Capital ◽  
Food Industry ◽  
Intangible Assets ◽  
Financial Statements ◽  
Point Of View ◽  
Market Capitalization ◽  
Knowledge Based ◽  
Theoretical Approaches ◽  
Knowledge Based Economy ◽  
Business Analysis

Abstract The concept of a knowledge-based economy is a relatively new topic, but it does not mean that the previous economies did not use knowledge. For many years, knowledge formed the basis of any economy, it was a factor that set the pace of each of them, but just nit is making a significant impact on the entrepreneurial environment, and more. Inherent KBE is the concept of intellectual capital. The article raises both theoretical approaches towards the concept of intellectual capital, and points to the importance (from the point of view of managing this intangible value in the company) -of measuring intellectual capital. The process of good management of the value of intangible assets must be supported by knowledge about, e. g.,its size, value, etc. The authors focus on presenting methods of measuring intellectual capital from two groups of methods by the classification made by K. E. Sveiby, who is considered one of the fathers of the IC concept. The goal of the article is to compare methods from these two groups in terms of their flaws and advantages as regards preparing business analysis. This is done through presentation of the topic, including the concept and methods of intellectual capital measurement, which was based on the review of the literature.Furthermore, based on financial statements of companies from the WIG- oil&gas index and WIG- food industry indexwaysof interpreting the final results are presented.

scholarly journals Evaluating the Intellectual Capital of Technology Transfer and Learning Public Services

10.5772/56002 ◽  
2013 ◽  
Vol 5 ◽  
pp. 7 ◽  
Author(s):  
Michele Grimaldi ◽  
Musadaq Hanandi
Keyword(s):  
Technology Transfer ◽  
Organizational Performance ◽  
Intellectual Capital ◽  
New Technologies ◽  
National Agency ◽  
Analytic Hierarchy ◽  
Knowledge Based ◽  
Core Competences ◽  
Knowledge Based Economy ◽  
Transfer Unit

Since the rise of the knowledge-based economy, many worldwide companies have begun to deal with different frameworks to manage and evaluate the performance of intellectual capital, especially in the area of knowledge management services. This paper presents a novel conceptual model aiming to support management in evaluating and prioritizing their intellectual capital competitive core competences. Based on the analytic hierarchy process, the model analyses interdependences among intellectual capital elements and determines the impacts of core competences on organizational performance. To validate the model, it is empirically applied in the Technology Transfer Unit of the Italian national agency for new technologies, energy and economic development.

scholarly journals Intellectual Capital and Profitability: A Firm Value Approach in the European Companies

2016 ◽  
Vol 17 (3) ◽  
pp. 234-242 ◽  
Author(s):  
Maria Manuela Martins ◽  
Ilídio Tomás Lopes
Keyword(s):  
Intellectual Capital ◽  
Firm Value ◽  
Intensity Level ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Profitability Ratios ◽  
Positivist Approach

Intangibles are, at a knowledge-based economy, the most important resources, driving companies towards systematic and sometimes unexpected returns. This paper follows a positivist approach and aims to investigate the association between the degree of intangibility, value of firms and their profitability. Based on the 500 largest European companies, rated by Financial Times, the most relevant insights emerge from the association between firms’ knowledge intensity level and its degree of profitability. These insights consolidate the evidences that immaterial resources act as drivers of future benefits and are embodied on firms’ profitability ratios.

scholarly journals Sustainable Management of a Korean Firm: Transformation of the Value Chain in Cheil Industries Inc.

2012 ◽  
Vol 13 (2) ◽  
pp. 113-133
Author(s):  
Woo Jun
Keyword(s):  
Corporate Culture ◽  
Value Chain ◽  
Sustainable Management ◽  
Current Knowledge ◽  
Manufacturing Sector ◽  
Value Added ◽  
The Past ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Korean Firm

By using a new conceptual model of ‘Smile Curve’, this research strives to examine how Cheil Industries Inc. (CI) has been transforming its value chain to create its competitive advantage. According to the results, CI’s value-added structure in the past (conventional industrialization economy) was heavily reliant on the manufacturing sector, and therefore, the profit graph shaped an ‘Upside-down Shape of U’ indicating that production and manufacturing are the most value-added fields. However, CI’s current (knowledge-based economy) graph shows a ‘U with Fluent Curve’ indicating that R&D, human resources, corporate culture, firm infrastructure, manufacturing, logistics and marketing are simultaneously creating value-added for the company. This implies that CI’s value-added source is more diversified to fit with knowledge-based economy.

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