Advances in intellectual capital performance measurement: a state-of-the-art review

Abstract

Purpose The purpose of this paper is to present a review on the latest developments, approaches and methods in intellectual capital (IC) performance measurement. Design/methodology/approach A total of 53 research papers from high-ranking journals concerning the advances in IC performance measurement were thoroughly reviewed and classified to identify the advanced approaches and methods that have been used to evaluate IC performance. Findings It is clear that the current application of advanced or intelligent methods in IC performance measurement is still at the primary stage. The reviewed approaches mainly focus on two core applications. First is to assist the data collection or data handling process and second is to enhance the result computation process to obtain a more reliable and realistic value that represents the performance of IC. Research limitations/implications This study offers a foundation and guideline for the researchers who wish to integrate advanced methods into IC performance measurement based on the reviewed advanced approaches in terms of their respective functions, strengths and limitations. It stimulates the creation of new IC performance measurement models that use advanced approaches to cope with real-life problems and dynamic conditions. Originality/value This paper contributes to the literature on IC performance measurement, in light of advances in technology. In general, five advanced approaches were identified, analyzed and discussed. Future research directions were presented to provide new insights for researchers to apply advanced methods in IC performance measurement, together with theoretical and managerial implications.

Intellectual capital, sustainable economic and financial performance and value creation in emerging markets: the case of Brazil

“…In this sense, the research contribution is threefold. First, the contemporary managerial, economic, political and social relevance of the theme is highlighted by Li et al (2021), Xu and Liu (2020); Lee and Wong (2019), Nadeem et al (2019); and Pedro et al (2018), who noted the vital importance of measuring IC as a means of promoting the competitiveness, innovation, sustainability, wealth and performance of organizations. A recent study by Ocean Tomo (2021), for example, has confirmed that intangible assets accounted for 17% of the market value of the S&P500 in 1975, rising to 68% in 1995, 84% in 2015 and reaching more than 90% in 2020.…”

Is Too Much a Good Thing? The Non-Linear Relationship Between Intellectual Capital and Financial Competitiveness in the Chinese Automotive Industry

“…Along the same lines, Edvinsson and Malone (1997) stated that IC is the ownership of knowledge, expertise, experience, technology, and customer relationships, which brings about competitiveness. Numerous studies (e.g., Vishnu & Gupta, 2014;Jelínková & Jiřincová, 2015;Smriti & Das, 2018;Cagáňová et al, 2019;Cheikh & Noubbigh, 2019;Lee & Wong, 2019;Sardo & Serrasqueiro, 2019;Xu & Li, 2019;Yao et al, 2019;Costa et al, 2020;Masoomzadeh et al, 2020;Nigam et al, 2021) have provided evidence that IC can be categorized into human capital (HC), structural capital (SC), and relational capital (RC). Specifically, HC can be considered as an essential factor of firm value creation (Smriti & Das, 2018), and is widely accepted as the amalgamation of skills, competencies, capabilities, and experiences of employees (Morris, 2015;Jelínková & Jiřincová, 2015).…”

Intellectual capital and service quality within the mobile telecommunications sector of Egypt

“…Also, Kianto et al (2014) defined overall IC as the sum of all of the intangible and knowledge-related resources that an organization is able to use in its production processes in the attempt to create value. While, Lee and Wong (2019) reported that IC embodies the intangible assets and resources of a company, such as knowledge, know-how, professional skills and expertise, employees, databases, intellectual properties, technologies, customers, etc., that can benefit a company and determine its potential to grow in the future when managed and used wisely. Accordingly, IC is not just a static intangible asset, but it is a means to an end (Bontis, 1998).…”