Intellectual Capital Development pp181-192
An approach for intellectual capital development in an organisation is given. It is based on a new conception of knowledge and knowledge dynamics and raises the notion of knowledge conversions to the level of intellectual capital domains. Intellectual capital development can be modelled with this approach by means of general transformations between domains and between appropriate parts of these domains, which themselves are refined and modelled with general knowledge conversions. To attain this approach, a new conception of knowledge and knowledge dynamics is introduced. The knowledge conception is represented by a knowledge cube, a three‑dimensional model of knowledge with types, kinds and qualities. The type dimension addresses the internal‑external aspect of knowledge, seen from the perspective of the human being. The kind dimension distinguishes various knowledge kinds like propositional or procedural knowledge. Finally, in the quality dimension, several quality measures of knowledge are given. Built on this conception, knowledge dynamics is modelled with the help of general knowledge conversions between knowledge assets. A set of basic knowledge conversions is given in a way, such that more complex general conversions may be easily gained by building on this set. Through this conception, we gain a sound basis for knowledge management and development in an enterprise. Raising this knowledge development approach to the more strategic and resource‑oriented intellectual capital level in an organisation, general transformations between the three main intellectual capital domains (individual competence, internal and external structure) and between parts of them can be described. With their help a model for intellectual capital development is gained: In a top‑down approach, general transformations of intellectual capital are broken down to the notion of general knowledge conversions. This leads to development of the intellectual capital, i.e. to value creation in a company. To indicate the applicability of our approach, an example for the development of customer relations capital is given.
Keywords: intellectual capital development, transformations of intellectual capital, intangible resources, value creation, conception of knowledge, knowledge conversions
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