Measuring Organizational Capital

Ludewig, Oliver; Sadowski, Dieter

doi:10.1007/bf03396793

Cited by 12 publications

(12 citation statements)

References 25 publications

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“…In a second group of studies, OC is defined as a firm-specific knowledge asset, and its effect on measures of firm performance such as gross output, sales and revenues is quantified, in a similar fashion to other balance sheet assets. Such literature generally relies on the estimation of firm level production functions, as in Lev and Radhakrishnan (2005) and Lev et al (2009) for the United States, Miyagawa and Kim (2008) for Japan, and Ludwig and Sadowski (2009) for Germany. Lev et al (2009), for instance, estimate firms' OC in terms of profit surplus accruing from increased revenue and decreased costs, as compared to the predicted profits that would be obtained in the absence of such KBC.…”

Section: Existing Approaches To Measuring Organisational Capitalmentioning

confidence: 99%

Cross-Country Estimates of Employment and Investment in Organisational Capital

Mouel

Squicciarini

2015

OECD Science, Technology and Industry Working Papers

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This work proposes a task-based methodology for the measurement of employment and investment in organisational capital (OC) in 20 OECD countries. It builds on the methodology of Squicciarini and Le Mouel (2012) and uses information from the OECD Programme for the International Assessment of Adult Competencies (PIAAC). OC is defined as firm-specific organisational knowledge resulting from the performance of tasks affecting the long-term functioning of firms, such as developing objectives and strategies; organising, planning and supervising production; and managing human resources. Crosscountry heterogeneity in OC-related occupations emerges: while 20 occupational classes of the International Standard Classification of Occupations (ISCO 2008) are on average identified as being OC-related, country-specific values range between 14 (in Korea) and 24 occupations (in Poland). A core group of managerial occupations are consistently identified as OC occupations across countries, whereas differences arise in the selection of professionals and associate professionals in science and engineering, health, education, and business administration. Estimates suggest the share of OC occupations in total employment to amount to 16% on average, with country-specific values that vary between 9.5% (Denmark) and 26% (United Kingdom); and that total investment in OC, as a share of value-added, ranges from 1.4% in the Czech Republic to 3.7% in the United Kingdom, with an average 2.2% across all countries. Managers appear to account for less than half of total employment and investment in OC. Total investment in OC results higher in services than in manufacturing. In the services sector, on average half of investment in OC comes from small firms, while in manufacturing, 45% of investment in OC comes from large firms. Finally, the importance of OC investment in the public sector is investigated. With only few exceptions, investment in OC is higher in the public sector than in the private sector. These estimates of OC investment can be used to analyse its role with respect to skill use and mismatch, its impact on the routinisation of tasks and resulting polarisation of wage distribution, and its role in firms' integration and upgrading along global value chains (GVC).

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Section: Existing Approaches To Measuring Organisational Capitalmentioning

confidence: 99%

Cross-Country Estimates of Employment and Investment in Organisational Capital

Mouel

Squicciarini

2015

OECD Science, Technology and Industry Working Papers

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“…The second group of studies defines organisational capital as a firm-specific knowledge asset, and quantifies its effect on firm performance measures as gross output, sales and revenues -in a similar fashion to other assets on a firm's balance sheet. Such literature generally relies on the estimation of firm level production functions, as in Lev and Radhakrishnan (2005) and Lev et al (2009) for the United States, Miyagawa and Kim (2008) for Japan, and Ludwig and Sadowski (2009) for Germany. Lev et al (2009) for instance estimate firms' organisational capital in terms of profit surplus accruing from increased revenue and decreased costs, as compared to the predicted profits that would be obtained in the absence of such a knowledge-based asset.…”

Section: Measuring Organisational Capitalmentioning

confidence: 99%

Defining and Measuring Investment in Organisational Capital

2012

OECD Science, Technology and Industry Working Papers

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The Working Paper series of the OECD Directorate for Science, Technology and Industry is designed to make available to a wider readership selected studies prepared by staff in the Directorate or by outside consultants working on OECD projects. The papers included in the series cover a broad range of issues, of both a technical and policy-analytical nature, in the areas of work of the DSTI. The Working Papers are generally available only in their original language-English or French-with a summary in the other. Comments on the papers are invited, and should be sent to the

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“…Theoretical models also provide an insight into which occupations create organisational capital. Ludewig and Sadowski (2009) present two models of organisational capital: one in which it exists within the workers of the organisation and one in which it rests within the structures of the organisation and would remain even if all the workers left. While they argue that the latter is a better model of organisational capital, the two models could represent types of organisational capital that coexist.…”

Section: Own-account Organisational Capitalmentioning

confidence: 99%

Measuring the Other Half: New Measures of Intangible Investment from the ONS

Josh

2019

Natl. Inst. econ. rev.

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Only half of investment by firms is in physical capital, such as buildings and machinery. The other half is in intangible assets, such as branding, software and training. This has been true for the past two decades or more in the UK, but only if you step beyond the measures in the National Accounts, which include only some of the recognised intangible assets. This paper surveys ongoing work at the Office for National Statistics to develop measures of investment in intangible assets, using new insights and innovative approaches. In particular, this paper reviews developments in three areas: in-house branding investments, employer-funded training investments, and in-house investments in organisational capital. We reconsider some of the key assumptions made in the literature and propose alternative approaches to measurement. The paper concludes by considering implications of this work, and identifies some of the remaining gaps in the evidence base for measuring intangible assets.

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Measuring Organizational Capital

Cited by 12 publications

References 25 publications

Cross-Country Estimates of Employment and Investment in Organisational Capital

Cross-Country Estimates of Employment and Investment in Organisational Capital

Defining and Measuring Investment in Organisational Capital

Measuring the Other Half: New Measures of Intangible Investment from the ONS

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