Abstract: The aim of the present is to verify the degree of applicability of the financial valuation method developed by Rodríguez‑Castellanos et al. (2006a, 2007) for the valuation of real option‑based intangibles in the Spanish region of the Basque Country. The field study consisted on a telephone survey of CFOs in a random sample of Basque Country’s firms, selected using segmentation criteria based on size and business sector. Considering the 517 replies received it is stated that, despite three of every four CFOs answering that options were included in their intangibles, approximately one of every five is actually capable of identifying such options. When we consider the difficulties encountered in estimating the model’s parameters, the conclusion is that less than 10% of the region’s firms are likely to be in a position to directly apply the method proposed for the valuation of real option‑based intangibles, which means a preliminary phase of analysis and diagnosis is required before the method can actually be applied in practice. The present paper makes a substantial contribution because it’s the first study that tries to verify the utility of a method for the financial valuation of intangible resources to take into account the associated real options. It could be useful from an academic and managerial point of view.
Keywords: real options, intangible resources, core competencies, financial valuation, intellectual capital, intangibles’ valuation
ICBS Intellectual Capital Benchmarking System: A Practical Methodology for Successful Strategy Formulation in the Knowledge Economy pp373-386
Abstract: The advent of the knowledge economy fundamentally changes the way to create wealth. According to new theoretical foundations (Resource Based View, Dynamic Capabilities and Knowledge Based View) key strategic knowledge or Intellectual Capital h as become the fundamental driver of wealth creation. A revision of the literature concludes that business excellence has always been due to good strategy formulation and superior strategy implementation. In order to achieve business excellence in the know ledge economy context substantial efforts have been made to improve the process of strategy implementation and some of them have produced relevant frameworks and methodologies, such as Balanced Scorecard and InCaS (Intellectual Capital Statement. Made in Europe). Nevertheless, fewer efforts have been made in the process of strategy formulation and, in practice, the SWOT analysis still is the most well known existing framework. However, in a world where customer preferences are volatile and the identity of customers and the technologies for serving them are changing, a market‑focused strategy may not provide the stability and constancy of direction needed as a foundation for long term strategy. When the external environment is in a state of flux, the fir m itself, in terms of its bundle of resources and capabilities, may be a much more stable basis on which to define its identity. Hence, a definition of the firm in terms of what it is capable of doing may offer a more durable basis for strategy than a def inition based upon the needs the business seeks to satisfy. Consequently, the SWOT analysis methodology can⠒t cope with the new external environment requirements and a kind of improved or extended SWOT analysis is needed. ICBS (Intellectual Capital Ben chmarking System) is the output of a practical research on extended or improved SWOT analysis, a framework that knowledge economy requires for successful strategy formulation. ICBS is a new management method that allows companies to perform a competitive ness strategy check‑up of their business models. F
Keywords: Keywords: strategic management, core competencies, ICBS-Intellectual Capital Benchmarking System, intellectual capital, extended SWOT analysis