Intellectual Capital and Business Performance in University Spin-Off Companies

University spin-off companies are under many competitive pressures that necessitate ongoing innovation and new product development. Technological and managerial knowledge endowed to spin-offs at start-up largely determine their potential for success, since exploiting this knowledge is their main activity. This chapter discusses the issue of university spin-off companies with particular emphasis on the role of intellectual capital, as the new engine of corporate development and one of the great clichés of recent years. In addition, the study also analyzes the relationships between intellectual capital and the company’s performance. It highlights how various types of intellectual capital (human capital, structural capital, relational capital) are strategically important for innovative start-up firms.

Intellectual Capital Disclosure in Sustainability Reports

The purpose of this chapter is to analyze the level and the quality of voluntary disclosures of Intellectual Capital (IC) in the sustainability reports on a sample of Italian listed companies. The authors conducted an analysis of twelve sustainability reports for two years (2009-2010). These are related to six firms selected among the most capitalized 37 Italian listed companies. To investigate the “level of disclosure,” the authors identified the presence of IC information, while to evaluate the “IC quality,” they constructed a voluntary disclosure index based on content analysis. IC information disclosure is more likely present in sustainability reports of firms with a higher levels of application of the Global Reporting Initiative framework. The results confirm that the sustainability report can adequately represent the intellectual capital, especially in order to understand its role in the firm and the interaction with other variables present in the firm.

Sustainable Intellectual Capital

This chapter introduces and defines the concept of sustainable intellectual capital and proposes an assessment model designed on the base of the key performance indicators required by the Global Reporting Initiative (GRI). The research results presented in this paragraph are debated in relation to companies’ practice. They refer to possible ways of including the information on Intellectual Capital (IC) and Corporate Social Responsibility (CSR) reporting requirements within their corporate strategy. The conclusions enhance the need for companies to be ready to support the integration of information on intellectual capital and corporate social responsibility in the transfer of knowledge in order to develop competitive advantage in the market. This research can contribute in many different ways, such as the extensive development of literatures and studies on relationships between corporate social responsibility and intellectual capital, the development of the new concept: the sustainable intellectual capital, or the projection of corporate strategy. The findings can enlighten organizations that intellectual capital can be an important asset, which is beneficial in conducting corporate social responsibility.

Complex Adaptive Systems Thinking Approach for Intelligence Base in Support of Intellectual Capital Management

This chapter introduces Complex Adaptive Systems Thinking (CAST) into the domain of Intellectual Capital (IC). CAST is based on the theories of Complex Adaptive System (CAS) and Systems Thinking (ST). It argues that the CAST, combined with Intelligence Base offers a potentially more holistic approach to managing the Intellectual Capital of an organization. Furthermore, the authors extend this IC management with additional dimensions proper to a social entity such as an organization. New organizational design methods are needed and the capability approach is such a method that supports IC in virtual and real organizations. The characteristics of Intellectual Capital are discussed in the iterative process of inquiry and the Cynefin Framework, guaranteeing a holistic view on the organization and its environment.

A Complex Responsive Process Approach to Strategic Management

Traditional strategic management focuses on securing organizational assets and maximizing resources through top-down leadership and the formation of competitive strategies to advance market position, meet performance objectives, and gain competitive advantage. Top-down bureaucratic paradigms are not well suited for gaining an edge in the knowledge economy, and in many cases, these strategic behaviors are counterproductive. There is a growing need for alternative ways of thinking about strategic management and human resource development. Complexity science provides a new framework for 21st century strategic management. The complex responsive processes approach to strategic management strengthens employee engagement, knowledge creation, and organizational learning, and it improves performance, achievement of long-term competitive advantage, and strengthens intellectual capital.

Intangible Capital Management Method as Dynamic Knowledge Wisdom

We are now in the age of various capitals like money, facility, real estate, movable property, structure, system, information, relations, human resource, intellectual property, knowledge, intelligence, and dynamic knowledge wisdom, which will have much influence in production, sales, management, economy, society, country, and the world. Some of them are tangible and the others are intangible. According to the tangible capitals, we have been developing the management methods here and there in real usages, but according to the intangible capitals, it is very hard to say that we are able to treat and manage the intangible capitals in an appropriate method by a proper intention. It is just because they are themselves quite ambiguous to understand and treat. Therefore, the present situations of the capitals, a treating method in principle, and a future direction of the capitals are studied by introducing the basic idea of “Intangible Capital Management Method as Dynamic Knowledge Wisdom.”

Intellectual Capital Explains a Country’s Resilience to Financial Crisis

From Resource-Based View (RBV), this chapter introduces intellectual capital as a valuable resource leading to competitive advantage at both organizational and national levels. The chapter elaborates on National Intellectual Capital (NIC) policy implications, using financially-strained countries such as Greece, Iceland, Ireland, Portugal, and Spain as examples. The co-development of NIC and GDP per capita (ppp) of four southern European countries and four Greater China economies during 2005-2010 are also presented and compared. This NIC development study discloses systematic warning signs starting in 2000 for those countries that were later in deep financial trouble, much earlier than the outburst of 2008 global financial crisis. “Intellectual capital explains a country’s resilience to financial crisis” is observed from the comparison. Consequently, in an era when intangible assets have become a key competitive advantage, investing in national intellectual capital development is investing in future national development and well-being.

Innovative Human Capital as a Core Strategy towards an Innovation-Led Economy

For the past decade, Malaysia has transformed considerably in its landscape, politics, outlook, economics, and social progress. It has developed from a country that focused on mining and agriculture towards an industrialized country, particularly in the manufacturing and service sectors. According to Prime Minister Datuk Seri Najib Tun Razak, as proliferated in the New Economic Model Agenda, moving towards this economy is fundamental especially in efforts to integrate the economy with the global economic network. Malaysia needs to continue to bring changes to the economy in order to move towards innovation-centred economy. The three main features are creativity, innovation value, and high skills. To achieve such a noble endeavour, Malaysia has no option but to nurture and configure the innovative human capital—simply put, Malaysia is in dire need of human capital that is innovative, creative, and proactive. In tandem with this scenario, the National Economic Advisory 2010 has outlined several strategic plans to transform Malaysia’s economy by focusing on strengthening and intensifying human capital development. Human capital needs to be equipped with necessary competencies and entrepreneurial activities to ensure that the private sector is the vanguard of economic development. Therefore, human capital approach could be leveraged by certain dimensions that could create new knowledge and information. Although human capital may be the origin of all knowledge, learning requires that individuals exchange and share insights and knowledge, which represent social embeddedness. Additionally, organisational architecture that is pro-innovativeness should be designed in promoting the development of human capital. The dimensions such as management support, work discretion, rewards, time availability, and risk taking could foster human capital to induce innovativeness. As such, it is imperative to understand the ingredients that could form and shape the innovative human capital by leveraging the social embeddedness and pro-innovativeness organisational architecture that lead to innovative performance and excellent organisational performance.

Exploration in Intellectual Capital Practice

Historically, Intellectual Capital (IC) has drawn the attention of researchers and practitioners as a new framework to assess the new competitiveness of firms and organizations in the knowledge economy. The enthusiasm dies down gradually as either the method is considered to be too general as compared with other performance measurement tools or non-mandatory as compared to other orthodox accounting methods that are already in place. This chapter links the professional IC management practices to a framework of Knowledge Management (KM) process to identify new methods and approaches. An intellectual capital management reference model is put forward to link the practice of intellectual capital and primary knowledge management functions. Three examples are selected to enrich the methodological scope and applications of IC practices. These include open elicitation of IC value tree and IC strategy map, mapping value, activity, and knowledge of unstructured business process and knowledge mining, and discovery of intellectual capital from unstructured information.

Human Resource Management for Innovative Capability Development in Malaysia’s New Economic Model

This chapter spotlights Malaysia’s New Economic Model (NEM), which aims to create a sustainable and robust economy through increased productivity and innovation. An innovation-driven business environment is to transform the Malaysian economy into one of high income and quality growth. Innovation is fueled by knowledge in organizations, and knowledge resides within individual employees. Thus, firms need to bring about knowledge exchange among employees to build on its innovative capability. Specific strategies can be utilized to encourage employees to acquire, share, and apply knowledge to create organizational value. The field of Human Resource Management (HRM) therefore becomes relevant in understanding organizational innovation in Malaysia. However, a comprehensive framework bridging HRM and organizational innovation has yet to be developed. This chapter fills in the gap by proposing a human resource management framework for innovative capability development in organizations for Malaysia’s New Economic Model.