Lessons learned in intellectual capital management in Germany between 2000 and 2020 – History, applications, outlook

Abstract

PurposeThis article reports on the background, the conceptual ideas and the lessons learned from over more than 20 years of IC Statements and Management with a country focus on Germany and some international developments. It calls for an integrated management approach for IC and offers case study evidence on how to accomplish this quest.Design/methodology/approachReport on the German initiative “Intellectual Capital Statement made in Germany” (ICS m.i.G.). A brief review of the literature describes the background and theoretical foundation of the German IC method. A short description of the method is followed by four detailed case studies to illustrate long-term impact of IC management in very different organizations. A discussion of Lessons Learned from more than 200 implementations and an outlook on current and future developments finalizes the article.FindingsIC Statements made in Germany (ICS m.i.G.) was successful in providing a framework to systematically identify IC, evaluate the status quo of IC relative to the strategic requirements, visualize interdependencies of IC, business processes and business results as well as to connect IC reporting with internal management routines and external communication. However, ICS is not an insulated method but delivers the maximum benefit when integrated with strategy development, strategy implementation, business process optimization accompanied by change management routines. Strong ties to human resource management, information technology departments, quality management, research and development teams as well as business operations as the core of an organization help to yield the most for ICS m.i.G. Over time, the focus of managing IC changes and maturity leads to deutero learning.Practical implicationsICS m.i.G. proved easy to apply, cost efficient for SMEs, larger corporations and networks. It helps to better accomplish their objectives and to adjust their business models. The guidelines in German and English as well as a software application released were downloaded more than 100,000 times. A certification process based on a three-tier training module is available and was successfully completed by more than 400 practitioners. ICS m.i.G. is supporting current standards of knowledge management, such as ISO 9001, ISO 30401 or DIN SPEC PAS 91443 and therefore will most likely have a continuing impact on knowledge-based value creation.Originality/valueThis paper reports lessons learned from the country-wide IC initiative in Germany over the last 20 years initiated and supported by the authors. Several elements of the method have been published over time, but so far no comprehensive view on Lessons Learned had been published.

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

“…The focus on that period also supports a reliable assessment of the impact of IC on EFP and VC, as the IC’s effect on company performance can be inconsistent during periods of market instability. Furthermore, Bornemann et al (2021) point out that, although various elements and methods have been published over time, the IC still requires an integrated approach to illustrate its long-term impact on different organizations, emphasizing the value of historical analysis, having themselves made use of a period of 20 years in their studies. All companies listed on B3 from 1995 to 2014 were analyzed, comprising 393 companies from all industries.…”

Does policy enhance collaborative-opportunistic behaviours? Looking into the intellectual capital dynamics of subsidized industry–university partnerships

“…Future studies should also explore the implementation of mixed measures (objective and subjective) to understand better the influence of behaviours on the contribution of IC inputs on partnerships' outcomes. It also implies extending the analysis of control mechanisms by combining knowledge management and innovation (Del Giudice and Maggioni, 2014;Bornemann et al, 2021;Pawlowsky et al, 2021). The fourth limitation is related to the unit of analysis.…”

Identifying the Dynamics of Intangible Resources for Industry 4.0 Adoption Process

“…To support companies in nurturing their IC, we developed a set of 15 harmonized factors, listed in Table I, which covers between 80 and 90 per cent of the factors initially used by 25 German SMEs [23]. This list has been applied to more than a thousand companies and has been continuously reviewed [23]- [27]. [27].…”