It is an established framework with definitions and standards and therefore common sense. His recent books include the strategic management of intellectual capital and organizational knowledge oup, 2002, information management for the intelligent organization 2001, and web work. Intellectual capital and business performance in the. Most importantly, an emphasis on human capital allows for a better understanding of the hidden values, individuals, enterprises, institutions, and communities that. Intellectual capital the commitment and competence of workers is embedded in how each employee thinks about and does work and in how an organization creates policies and systems to get work done. Bontis 1996 subsequently replaced customer capital with relational capital, and this change has been adopted by.
Intellectual capital as a resource and by measuring its efficiency 17. Booker1, nick bontis1 and alexander serenko2 1degroote school of business, mcmaster university, hamilton, ontario, canada 2faculty of business administration, lakehead university, thunder bay, ontario, canada. This lack of consistency in reporting frameworks by australian firms presents a challenge for organisations considering embarking on intellectual capital reporting. Intellectual capital and business performance european research. Professor bontis is widely considered a leading expert in the fields of intellectual capital and knowledge management and has presented at over one hundred conferences, corporate presentations. Major role, key importance and decisive influences on organizations performance aims to study the definitions, role, importance, valences and components of intellectual capital, as well as intellectual capitals decisive influence on the level of organizational performance.
Intellectual capital american institute of science. In 2003, the intellectus knowledge forum of the university institute of business administration presents to the. Cabrita, m and vaz, j 2006 intellectual capital and value creation. The strategic management of intellectual capital and.
The intellectual capital perspective during the last. Evidence from italian banking industry pina puntillo15 this study intends to investigate empirically the relation between the value creation efficiency and firms market valuation and financial performance, by using data drawn from 21 banks enlisted in the milan stock exchange, italy. Procedia social and behavioral sciences 221 2016 194 a 202 hypothesis 4. The purpose of this paper is to examine a number of major theoretical and empirical contributions in the field if intellectual capital with an attempt to identify the major components of. Intellectual capital is the intangible value of a business, covering its people human capital, the value relating to its relationships relational capital, and everything that is left when the employees go home structural capital, of which intellectual property ip is but one component. Diversity management as a tool of managing intellectual. Managing intellectual capital strategically, business.
The purpose of this empirical study is to investigate the three elements of intellectual capital, i. According to nick bontis, a famous professor of strategic management at mcmaster university, the director of the institute for intellectual capital research, there are four measurement systems among practitioners. Intellectual capital, page 1 intellectual capital and valuation. First, intellectual capital is a firms only appreciable asset. The impacts of intellectual capital, innovation and. The relevance of knowledge management and intellectual.
There is evidence that the form and context of organisations are in. Consequently, recent developments have come largely in the form of popular press articles in business magazines and national newspapers. Intellectual capital and business performance semantic scholar. His research focuses on intellectual capital, knowledge management and organizational learning. An organization seeking its highest possible stock of intellectual capital should therefore have a genuine interest in research. Academics believe that intellectual capital is the lever for maintaining competitive advantages and sustainable performance. Intellectual capital in egyptian software firms semantic scholar. Intellectual capital and performance in causal models. The importance of the interaction between physical assets and intellectual capital could contribute to two basic explanations.
The intellectual capital of a nation or a region of nations requires the articulation of a system of variables that helps to uncover and manage the invisible wealth of a country. Chun wei choo is professor of the faculty of information studies at the university of toronto. Only afterwards relational capital substitutes customer capital bontis, 1998. Stewart, in his groundbreaking coverstory in fortune magazine, is credited with providing the main impetus for a new world of intellectual. Intellectual capital and business performance in malaysian. Nick bontis by nick bontis nick bontis is a doctoral candidate studying business policy and strategic management at the western business school. The balanced scorecard approach kaplan and norton, 1992, 1993, 1996a, b has been used in several cases.
The impact of intellectual capital on organizational. Intellectual capital is the knowledge converted to value, which is attributable to. The study was conducted using a psychometrically validated questionnaire which was originally administered in canada. Intellectual capital is intellectual materials knowledge, information, intellectual property, experience that can be put to use to create wealth stewart, t. A structural equation model of intellectual capital based. These two mechanisms create the individual dimensions of intellectual capital. This ability there is in the peoples essence and it.
Milestones in the development of intellectual capital. Diversity management as a tool of managing intellectual capital. Their combined citations are counted only for the first article. The effects of intellectual capital on performance in australian small and medium enterprises smes abstract there are limited studies in the literature that investigate the relationship between intellectual capital and sme performance, and test the mediating effects of organizational innovation.
Our study follows the conceptualisation adopt ed by bontis 1999. Journal of intellectual capital intellectual capital and financial performance in social cooperative enterprises nick bontis, massimo ciambotti, federica palazzi, francesca sgro, article information. Intellectual capital and business performance 2 extensively in a variety of academic journals and has completed three books. In knowledgebased economy, companies do not produce just products or services but create added value to survive in the new economic reality. Brooking 1996 defined intellectual capital as the combination of intangible assets which enable the company to function. Knowledge creates a basis of all the dimensions of intellectual capital.
Chapter 4 measuring intellectual capital it is tempting to try to design a measurement system equivalent to doubleentry bookkeeping with money as the common denominator. An organization that wants to increase its own intellectual capital, would have to engage in a formal examination of each employees attitudes about life and business. An empirical investigation of the relationship between intellectual capital and firms market value and financial performance n bontis, s wu, mc chen, sj cheng, y hwang journal of intellectual capital, 2005. Nick bontis, massimo ciambotti, federica palazzi, francesca sgro, 2018 intellectual capital. The effects of intellectual capital on performance in. According to bontis 1998, ic refers to the intangible assets of an organization i.
Reporting on intellectual capital ghent university. Pdf intellectual capital and business performance in. Intellectual capital core asset for the third millennium. Bontis 2010 argues that the term intellectual capital was also deployed by peter drucker 1993 to describe postcapitalist society. Bontis 2001 human capital human capital is human ability for problem solving. Intellectual capital efficiency and corporate performance.
In the late 1990s a number of studies began to deploy the term ic in. Bontis 1999 defined the human capital as knowledge, skills, expertise and abilities expressed by employees. It is the sum of everything everybody in a company knows that gives it a competitive edge. However, various taxonomies for ic have also been suggested bontis, 1996. It was identified that with a view to enabling organisations provide a clear. This paper details an empirical pilot study that explores the development of several conceptual measures and models regarding intellectual capital and its impact on business performance. He is a recognised as a leading professional speaker and consultant in the field of intellectual capital, knowledge management and organisational learning all. The objective of this pilot study is to explore the development of items and constructs through principal components analysis and partial least squares pls. Intellectual capital and business performance in malaysian industry. To facilitate the process of managing intellectual capital, there have been several attempts to create formulae that will capture and measure the real value of intellectual capital in the organizations balance sheet filios, 1991, in zickner, 1996, p 4243. Booker1, nick bontis1 and alexander serenko2 1degroote school of business, mcmaster university, hamilton, ontario, canada 2faculty of business administration, lakehead university, thunder bay, ontario, canada in recent years, there has been a growing pressure on business schools to make their. The theme chosen for the scientific research intellectual capital. Pdf intellectual capital disclosure payback carla curado. Intellectual capital research has primarily evolved from the desires of practitioners bontis, 1996.
Interestingly, the professional community of accountants arguably the group that should be most active in overseeing new reporting. The biggest challenge by far is establishing a consensus about the need to report, what. Mar 01, 2000 the purpose of this empirical study is to investigate the three elements of intellectual capital, i. Consequently, the impact of intellectual capital on organizational performance is high, allowing the validation of the assumed association in 201 luminita maria gogan et al. Nonfinancial evaluation of intellectual capital can be related to reimbursement plans and managers rewards.
Intellectual capital research has primarily evolved from the desires of practitioners. Pdf intellectual capital and business performance in malaysian. Intellectual capital management became the domain of the socalled cko or chief knowledge officer bontis, 2000. The categories represent aggregates of intangibles which are grouped. The impact of intellectual capital on organizational performance. A new model to measure and manage intellectual capital abstract. A structural equation model of intellectual capital based on. The relevance of knowledge management and intellectual capital research lorne d. Evaluation of intellectual capital and its importance mehdi fadaei.
The influence of intellectual capital on knowledge sharing. Nick bontis born may 27, 1969 is a canadian academic, management consultant, professional keynote speaker, sports management executive and author. But this is precisely the reason why we should break with it. Pdf intellectual capital and business performance in the. In their study, cabrita and vaz 2006 prove that intellectual capital is substantively and significantly related to. Roos and roos 1997 deine intellectual capital as the. Bontis received his phd in strategic management from the ivey business.
The city of houston, texas successfully underwent a similar evolution in the 1980s. Top managementas performance can usually be measured in terms of sales volume, market share, cash flow, profit, roi, dividends and market value donovan, 2009. The city of houston, texas successfully underwent a. Ic is a relatively recent term in organizational behavior. Literature provides several intellectual capital models. Mcm stand field 1998 the market value determined by the investor surveys the value of intellectual capital in comparison with the market value and registered value. Introduction more than a decade has passed since the publication of the first proposal about the concept of measuring and managing the intellectual capital. Journal of intellectual capital the impact of intellectual capital on firm performance. More recently, intellectual capital ic is considered as the critical antecedent for the sustained performance of a firm bierly and chakrabarti, 1996. Research goal in this survey, we aim to identify the effects of intellectual capital, innovation and organizational strategy on firm performance. Intellectual capital management and running motalebi, 2001. It identifies and discusses the major milestones in the intellectual capital ic reporting movement and significant contributions promoting external reporting of ic.
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