Purpose-The purpose of this paper is to present a framework that is developed for analysis of intellectual capital transformation into companies' value, including an identification of the key factors of this process. Design/methodology/approach-The paper employs intellectual capital on the intersection of value-based management (VBM) and the resource-based view (RBV). Starting from a review of the results provided in the literature regarding intellectual capital (IC) evaluation and its link with firm performance, a system of proxy indicators related to IC transformation in both concepts has been designed. The evaluation ability of the developed model was justified using regression analyses. Findings-A detailed algorithm for intellectual capital evaluation in terms of input-outcome transformation. The intellectual capital transformation evaluating model (ICTEM) provides a holistic view of intellectual resources as companies' strategic investments. Research limitations/implications-The paper emphasizes that the ICTEM framework could be mostly applied for the analysis of a firm as a typical representative of the industry or the country. In that sense it is not applicable for specific feature analysis of a company. Practical implications-The paper highlights the ICTEM as a tool of investment decisions, mostly taking into account common trends, the prospects of industries, and economies' development. Originality/value-The ICTEM provides the ostensive framework of intellectual capital transformation analysis using a statistical approach.

This study investigates the factors that support or obstruct market value creation through intangible capital. We explore the impact of intangibles and exogenous shocks on corporate attractiveness for investors measured by Market Value Added (MVA). Specifically we analyze relationship between intangible-driven outperforming of companies, measured by Economic Value Added (EVA) and a number of intangible drivers on macro, meso and micro level. We suppose that the process of value creation is confined not only by companies' performance. It is established in our study that investment attractiveness is affected by intangibles. Our empirical research is conducted on more than 900 companies from Europe and US during the period of 2005-2009. We found out in this study that a company's experience, size and innovative focus facilitate value creation. An unexpected result was revealed concerning countries' education level, which appears to be an obstructive condition for intangible-driven value creation. Our findings extend the understanding of the phenomenon of intangible capital and enable the improvement of investment decision-making. JEL Classification: G 30, M21.

Purpose – The purpose of this paper is to explore the plausibility of six elements of IC and justify the measurement ability of a set of indicators based on publicly available data for each of the proposed element in order to provide tools to managers for their decision-making process in knowledge management (KM). Design/methodology/approach – Core company's intangibles are combined into six intellectual capital (IC) elements that appear after the division of each of the traditional components (human, structural and relational capital (RC)). The human capital includes management and human resources capabilities (HRC). Structural capital is divided into innovation and internal process capabilities (IPC). RC contains networking capabilities and customer loyalty. In drawing on the relevant literature each element is described through a set of indicators collected from publicly available data. The validity of proposed IC model is justified through structural equation modeling. Each element is tested on a sample of more than 1,650 listed European companies over the period of 2004-2011. Findings – The study gives empirical support of three component IC structure and its decomposition into second level. The findings reveal that implementation of KM plays a significant role for HRC as well as for IPC. Research limitations/implications – The analysis was conducted for a particular sample that may restrict the conclusions. Practical implications – The proposed measurements for intangibles can be applied by any company for benchmarking and comparative analysis in KM. Originality/value – The study provides empirical justification of metrics for intangibles allowing a better route in an economy driven by knowledge.

Purpose The paper aims to explore factors of the low competitiveness of Russian companies assuming that the gap in the endowment of intangible resources is responsible for the gap in competitiveness. Design/methodology/approach The framework of resources-based view is used to examine causality between the resources used and competitiveness measured by economic value added (EVA). Controlling for the most relevant factors, the authors place an emphasis on those intangible resources that are considered in the literature as being the most critical for Russian companies when contending for global competitiveness: productivity, strategic long-term orientation of companies, quality of human capital, innovative behavior of companies, foreign investments and corporate networks. The data set of more than 1,000 Russian companies benchmarked to the data set of more than 1,600 European companies during a period of 10 years: 2004-2013 is analyzed to test the hypothesis put forward. Findings Causal effect of the gap in intangible endowment and competitiveness of Russian companies compared with European rivals is revealed. According to our analysis, gaps in productivity, strategy implementation, qualifications of the board of directors and company location play critical roles in the global competitiveness of Russian companies. Meanwhile, underinvestment in structural resources, such as enterprise resource planning (ERP) systems and other intangible assets, are considered positive factors that reduce gaps in EVA. Originality/value The paper introduces original approach for studying the gap in performance caused by the gap in used resources.

This study investigates the factors that support or obstruct market value creation through intangible capital. We explore the impact of intangibles and exogenous shocks on corporate attractiveness for investors measured by Market Value Added (MVA). Specifically we analyze relationship between intangible-driven outperforming of companies, measured by Economic Value Added (EVA) and a number of intangible drivers on macro, meso and micro level. We suppose that the process of value creation is confined not only by companies' performance. It is established in our study that investment attractiveness is affected by intangibles. Our empirical research is conducted on more than 900 companies from Europe and US during the period of 2005-2009. We found out in this study that a company's experience, size and innovative focus facilitate value creation. An unexpected result was revealed concerning countries' education level, which appears to be an obstructive condition for intangible-driven value creation. Our findings extend the understanding of the phenomenon of intangible capital and enable the improvement of investment decision-making.JEL Classification: G 30, M21.