Visualizing intellectual capital using service-dominant logic

Abstract

Purpose The purpose of this paper is to investigate intellectual capital (IC) reporting, from a service-centric approach, in the hotel industry. The strategic enhancement of value-creation and sustainable competitive advantage requires both management and measurement. Sound measurement and reporting practices enable management performance to be judged; one such practice is IC disclosure. Service-dominant (S-D) logic emphasizes that intangible operant resources, the foundation of IC, are at the core of competitive advantage. Design/methodology/approach A disclosure instrument based on S-D logic and designed specifically for the hotel industry was applied to the annual reports and sustainability reports (in English) of 30 Asian hotel companies. Content analysis measured the disclosures of dynamic IC assets typically overlooked by traditional IC disclosure instruments. Findings The majority of IC communication concerns lower-order basic operant resources. Although more than one-third of the companies’ disclosures of IC assets relate to collaborative processes and practices that support networked value-creation, most disclosures demonstrate a prevailing firm-centric orientation. IC items regarding reciprocated relationship and informational management were minimally reported. Research limitations/implications A single research approach was used. Future research could use other communication channels to triangulate. Practical implications The results highlight opportunities for hotel companies to better report their IC assets as part of their value-creating strategies. Originality/value This research is one of the first to operationalize S-D logic concerning IC. It provides a promising framework for understanding IC reporting in the hotel industry.

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“…These findings are in consistent with the study of Ognjanovic (2016) indicated that, when the hotels are investing in developing the skills of their employees and human capital through providing effective training programs and educational activities, they can gain the required business performance. Also, Davey et al (2017) clarified that, empowering and motivating employees can be considered the essence of human capital which leads to raising performance and increasing revenues.…”

Intellectual capital and productivity of managers: The case study of hotel industry in Serbia

“…Many researchers believe that intangible resources become a key factor in gaining competitive advantage and market domination (Ghosh & Mondal, 2009). In the field of tourism and hotel management, IC is recognized as a key resource for value creation (Davey et al, 2017). IC is a set of intangible investments that drive business performance and creating value (Huang & Jim Wu, 2010).…”

“…A high level of guest satisfaction is the basic lever for creating long-term loyalty that leads to an increase in profit and reduced marketing and operating costs (Mandarić, 2016). Research in the hotel industry shows that the skills and competencies of employees, in the use of structural capital and building relationships with stakeholders, improve customer satisfaction and financial performances of the company (Lo, 2013;Davey et al, 2017). Also, some authors (Chen et al, 2004) believe that customers capital is most closely related to business performances.…”

“…Intangible assets, such as intellectual capital and intellectual property, become more dominant, compared to tangible assets (Phusavat et al, 2013). For these reasons, the knowledgebased economy imposes the need for recognition and strategic management of intangible resources, because their invisible nature provides the basis for long-term value creation (Davey et al, 2017). The importance of intangible assets in determining organizational success is supported by a resource-based view (Oppong et al, 2019), so it is necessary to explore the relationship between the level of development and use of intangible assets and employee performance.…”

Re-Investigating the Roles of Green Service-scape to Improve Tourism Performance Marketing Service Dominant Logic Perspective: A Literature Review

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