Valuing investments in intellectual capital

Bassi, Laurie J.; Buren, Mark E. Van

doi:10.1504/ijtm.1999.002779

Cited by 123 publications

(79 citation statements)

References 11 publications

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“…in order to formulate a strategy, it is fundamental to establish the available resources, the existing relations between the intangibles and other resources, and the connection between intangibles and the performance (Grant, 1991). (neely et al, 1996;Kaplan & norton, 1996;Bassi & van Buren, 1999). intangibles are part of the inputs that a company has to use to develop a specific business strategy, but they are also outputs once the strategy is implemented.…”

Section: Financial Valuation Of Intangiblesmentioning

confidence: 99%

Motives for Financial Valuation of Intangibles and Business Performance in SMEs

Alonso¹,

Merino²,

Ayastuy³

2015

Innovar

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In line with the Resource-based view, intangibles have become the key resource for generating competitive advantages in a firm. This is particularly significant in the case of small and medium enterprises (SMEs) whose competitive advantage is frequently based on intangible resources. However, there has been little attempt to assess and measure the role of intangible resources in firms' performance, and the motives driving their valuation process. Besides, most of the studies have been carried out in large firms. This article, combining theoretical contributions and empirical evidence, aims to analyze the relationship between the motives, external or internal, driving the valuation process of intangibles and the performance obtained by SMEs. Considering the recognized hypotheses and based on a survey of a representative sample of 369 Spanish SMEs' managers, in addition to the financial data collected from these firms, we explore whether the different motives driving the companies to perform a financial valuation of their intangibles are reflected in the business performance, and conditioned by financial structure and the level of intangibles. Results indicate that SMEs consider important to report intangibles value to external stakeholders as they depict a higher level of borrowing, as well as a higher level of intangibles accounted in the balance sheet. Furthermore, SMEs that consider the financial valuation of their intangibles for internal reasons achieve better performance. The implications of these results and suggestions for future research are dicussed as well.

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Section: Financial Valuation Of Intangiblesmentioning

confidence: 99%

Motives for Financial Valuation of Intangibles and Business Performance in SMEs

Alonso¹,

Merino²,

Ayastuy³

2015

Innovar

View full text Add to dashboard Cite

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“…The practice is said to be very successful as each decision made by the company has to be focused on the customer, which include the suggestions made by the customers in activities of knowledge creations, knowledge storage that is important to customers, customers' complaints review, and applies the knowledge to accomplish the customers' needs and enhance their satisfaction (Ju, Lin, Lin, & Kuo, 2006;Wei 2009). Apart from this, every business process which emphasizes on customers' knowledge is part of the logical plus point in a company (Bassi & Van Buren, 1999). Liao (2006) explained that sharing information on customer needs among co-workers or leaders could form as a competitive advantage to the company.…”

Section: The Link Between Tqm Practices and Knowledge Sharingmentioning

confidence: 99%

TQM practices and knowledge sharing: An empirical study of Malaysia’s manufacturing organizations

Ooi¹,

Cheah

Lin

et al. 2010

Asia Pac J Manag

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The purpose of this paper is to examine the multidimensionality of TQM practices and its relationship with knowledge sharing as perceived by middle management employees in Malaysia's ISO 9001:2000 certified firms of manufacturing sectors. The data which were collected from a survey of 129 middle management employees in Malaysia were used to test the proposed research framework. Furthermore, confirmatory factor analysis was performed to evaluate the reliability and validity of the measurement model, and the structural analysis was used to examine the research framework. The analytical results revealed that training and development, customer focus, and teamwork showed a positive association with middle management employees' knowledge sharing. This analysis is vital for senior managers of TQM companies that want to establish a knowledge sharing capability. Senior managers could focus their efforts on implementing TQM practices for building competitive knowledge sharing competencies.

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“…Net income and its component items belong to the information presented within the financial statements, while the EVA and RI belong to the financial performance information outside the financial statements. As for the selection of the nonfinancial measurements, we integrate the concept of the balanced scorecard (Kaplan and Norton, 1996) with the literature on intellectual capital (Edvinsson and Malone, 1997;Stewart, 1997;Brooking, 1998;Bassi and Van Buren, 1999; to evaluate the corporate intangible assets in order to explain the reason for the difference between the corporate market value and book value. Because of the existence of differences in the value creation activities, we also analyze the upstream, midstream, and downstream sections of the information electronics industry, in order to explore whether there are differences between the financial and nonfinancial perspectives and the corporate value.…”

Section: Linking Corporate Value To Financial and Nonfinancial Performentioning

confidence: 99%

The Value-Relevance of Financial and Nonfinancial Information?Evidence from Taiwan?s Information Electronics Industry

Liang

Yao

2005

Rev Quant Finan Acc

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This study integrates general measurements of the information electronics industry based on the concepts of the balanced scorecard, intellectual capital, and intangible assets. The reasons for the difference between the corporate market value and book value are also analyzed, and the impacts of both financial and nonfinancial perspectives on the corporate value are explored. The component items of net income are found to be more effective in explaining the value of a company than merely looking at the bottom line. It is concluded that RI and EVA have significant and similar explanatory power in terms of evaluating the performance of the information electronics industry. Moreover, a review of the nonfinancial performance of information electronics companies on the basis of segmented samples reveals significant results in terms of explaining the value of the upstream, midstream, and downstream companies.

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Valuing investments in intellectual capital

Cited by 123 publications

References 11 publications

Motives for Financial Valuation of Intangibles and Business Performance in SMEs

Motives for Financial Valuation of Intangibles and Business Performance in SMEs

TQM practices and knowledge sharing: An empirical study of Malaysia’s manufacturing organizations

The Value-Relevance of Financial and Nonfinancial Information?Evidence from Taiwan?s Information Electronics Industry

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