The Electronic Journal of Knowledge Management aims to publish perspectives on topics relevant to the study, implementation and management of knowledge management
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Information about the European Conference on Knowledge Management (ECKM) is available here.

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Information about the European Conference on Intellectual Capital (ECIC) is available here
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Journal Article

A New Insight into the Valuation of Start‑ups: Bridging the Intellectual Capital Gap in Venture Capital Appraisals  pp75-88

Blanca María Martins Rodríguez

© Nov 2003 Volume 1 Issue 2, Editor: Fergal McGrath, pp1 - 226

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Abstract

The emergence of a New Economy has brought consensus to the idea that innovation skills and capabilities are the main drivers of a firm's wealth generation capacity. The principal role that venture capital played in boosting American economic productivity and growth during the 1990s, fuelling innovation and the creation of new firms is well known. However, the huge number of bankruptcies among high‑tech companies in 2000 generated general distrust in financial markets worldwide. In particular, it caused great reluctance to invest in start‑up companies and led investors and academics to question and take an in‑depth look at existing valuation procedures. Building upon the concept of competitiveness of Man et al. (2002) and the premise that a firm's success is the result of appropriate strategy formulation and implementation (Grant, 2002), the present paper develops the start‑up general valuation model (SGVM) as a first step to improving the investment appraisal of start‑up companies and promoting a more effective allocation of resources in the economy.

 

Keywords: start-ups, valuation, venture capital, business model, top management team, intellectual capital

 

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Journal Article

Intangible Assets Identification and Valuation — a Theoretical Framework Approach to the Portuguese Airlines Companies  pp191-200

Ilídio Tomás Lopes, Ana Maria Gomes Rodrigues

© May 2007 Volume 5 Issue 2, ICICKM 2006, Editor: Dan Remenyi, pp131 - 254

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Abstract

Intangibles have emerged in the last decade as an important issue among companies' accounting theories. Companies have implemented strategies based on the robustness of their own intellectual capital. Competitive advantage is based on the capacity to anticipate, innovate and make shared use of opportunities. In the air transportation sector, strong changes have also occurred — traditional value chains based on linear activities alignment, were replaced by a new perspective: the innovation cycle (specific intangibles recognition associated with new business models) and its impact on the operational cycle. This paper presents a theoretical framework approach about intangible assets identification and valuation in the air transportation sector as a whole. The first step of this empirical evidence is based on the Portuguese Airlines companies.

 

Keywords: intangible, knowledge, intellectual capital, valuation, air transportation

 

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Journal Article

Intangible Assets: Importance in the Knowledge‑Based Economy and the Role in Value Creation of a Company  pp539-550

Dmitry Volkov, Tatiana Garanina

© Jan 2008 Volume 5 Issue 4, Editor: Charles Despres, pp347 - 550

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Abstract

The paper is devoted to the question of how important Intangible Assets (IA) are in today's knowledge‑based economy. The latest surveys show that the value of companies is now mostly generated by Intangible Assets, and not by "traditional" assets having a tangible form. The main research objective is to define the impact of fundamental value of both tangible and intangible assets on the market value of assets of Russian companies. As a general approach used herein for IA evaluation, the method of calculated intangible value offered by T. Stewart was chosen. Developed econometric models are tested on the data of Russian stock market from 2001 to 2005 year. In the focus of the research there is both the analysis of the sampled companies (43 companies) as a whole as well as divided into five aggregated fields: mechanical engineering, extractive industry, engineering, communication services, and metallurgy. Some suggestions for managing IA in Russian companies are presented in the paper. In conclusion, the main directions for further research in this field are outlined.

 

Keywords: knowledge-based economy, intangible assets, intellectual capital, valuation, calculated intangible value

 

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Journal Article

Intellectual Capital and IFRS3: A New Disclosure Opportunity  pp21-30

Daniel Brännström, Marco Giuliani

© Apr 2009 Volume 7 Issue 1, ECKM 2008, Editor: Roy Williams, pp1 - 198

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Abstract

As a response to the absence of an exhaustive generally accepted accounting principle handling the issue of intangibles, academics and practitioners have developed a plethora of models, methods and tools for identifying, measuring and valuing intangibles. Conscious of this situation, some authors have started asking for empirical studies of how these models make the IC issue clearer to stakeholders in general and specifically to the capital market (Guthrie, et al., 2001; Marr and Chatzkel, 2004). The introduction of International Financial Reporting Standard (IFRS) 3 (a regulation demanding the identification and valuation of intangible assets in business combinations) may be considered as the opportunity for a practical application of the methods and tools proposed by the Intellectual Capital (IC) community, i.e. to make intangible assets such as customer capital, know how, etc. visible in the financial statement. IFRS3 is a possibility to disentangle the "black‑box" of goodwill and for the financial accounting issue to adhere to some of the critique emanating from the IC debate. As a result, IFRS3 can be seen as an opportunity to test the relevance of the IC models and to reduce the gap between IC Accounting and Financial Accounting (Petty and Guthrie, 2000; Roslender and Fincham, 2001). Drawing on the debate of how to frame intangibles (Chaminade and Catasús, 2007), the aim of the paper is to analyze the distance, from an empirical perspective, between IC accounting and financial accounting in order to understand if a gap exists. Thus we will investigate how firms have applied IFRS3 by studying what the relevance of intangibles is, which intangible assets have been identified and valued and what goodwill is disclosed as in the purchase analyses. The empirical corpus consists of financial statements of Swedish and Italian listed firms. The methodology adopted is based on an empirical analysis of the purchase analyses supplied by the firms in the financial statements, referring to the first year mandatory adoption of IFRS3 (fiscal year 2006). The disclosed information is analyzed through both quantitative and qualitative analyses. The study finds that the analytical methods are still at a very first stage and consequently there is the trend to appreciate, at least in the financial statement, the majority of the IC as goodwill. The second finding is that even if they represent the minority part of the invisible value of the company, IFRS3 has really allowed for several intangible assets usually not disclosed in the financial statements such as customer relationships, contract portfolio, etc to be made visible. A third finding is the lack of explanations for this amount of goodwill. All in all, the paper highlights that, from an empirical perspective, both financial and IC accounting models are not able to adequately grasp IC "at work".

 

Keywords: intellectual capital, valuation, financial accounting, goodwill, purchase analysis

 

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Journal Article

Real Options in the Valuation of Intangibles: Managers’ Perception  pp168-182

Belén Vallejo-Alonso, Gerardo Arregui-Ayastuy, Arturo Rodriguez-Castellanos, Domingo García-Merino

© May 2013 Volume 11 Issue 2, Editor: Ken Grant, pp116 - 182

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Abstract

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

 

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Journal Article

IMPaKT: A Framework for Linking Knowledge Management to Business Performance  pp1-12

Patricia Carrillo

© Nov 1999 Volume 1 Issue 1, Editor: Fergal McGrath, pp1 - 68

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Abstract

A number of organisations have recognised the importance of managing their organisation knowledge in a more structured manner. However, the question arises as to how to evaluate the benefits of a Knowledge Management (KM) strategy and its associated initiatives on the performance of the organisation. This paper presents a framework for the assessment of the likely impact of KM and discusses findings from an evaluation workshop held to critique the framework.

 

Keywords: Knowledge management, business performance, evaluation

 

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Journal Article

Developing an Instrument for Knowledge Management Project Evaluation  pp61-68

Zuhair Iftikhar

© Nov 1999 Volume 1 Issue 1, Editor: Fergal McGrath, pp1 - 68

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Abstract

Many knowledge management (KM) projects have been initiated, some of which have been successes but many have been failures. Measuring the success or failure of KM initiatives is not easy, and in order to do so some kind of measurement process has to be available. There are three points at which evaluation of KM projects can, and should be, done: (1) when deciding whether to start and where to focus, (2) once under way, following up on a project and making adjustments if needed, and (3) when completed, to evaluate the project outcomes. This paper concentrates on the first two areas by developing a general instrument for evaluation of KM projects.

 

Keywords: Knowledge management, Evaluation process, Measurement instrument, Success factors

 

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Journal Article

Organizing Customer Knowledge in Academic Libraries  pp21-32

Farhad Daneshgar, Lyn Bosanquet

© Jan 2010 Volume 8 Issue 1, Editor: Ettore Bolisani, Enrico Scarso, pp1 - 180

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Abstract

Availability of sophisticated ICT infrastructure combined with emerging business processes such as various service orientation configurations, constitute major characteristics of many of today's libraries in western universities. This has created a vast amount of customer‑related information in libraries. This article provides a methodology for organising customer knowledge in academic libraries. A two‑dimensional Customer Knowledge Taxonomy (CKT) has been presented for organizing the customer knowledge, thus providing a formal and explicit specification to deliver a shared conceptualization of customer knowledge. Based on the proposed CKT, customer knowledge in academic libraries can be classified into (i) knowledge about customers, (ii) knowledge from customers and (iii) knowledge for customers. The knowledge in each of these three categories can be 'explicit' and 'tacit', thus providing six categories of customer knowledge. The second major contribution of this paper is to introduce a method for integrating the above first and second categories of customer knowledge in order to derive the third category. This integration methodology is based on an integrated cyclical knowledge flow model that consists of four phases including: (i) communication, (ii) knowledge sharing & dissemination, (iii) knowledge acquisition and application, and 'iv' knowledge utilization and evaluation. Through a qualitative research, the proposed framework, consisting of the CKT and the corresponding integrated cyclical knowledge flow model, was then applied to a large university library for coding and classifying the vast amounts of existing customer data residing in 2,500 interview scripts within the case study organization. In doing so, a uniform coding scheme had to be developed using a focus group methodology. Data were then stored into a customer knowledge base using the Laximancer software. The proposed framework was evaluated for consistency of conceptualisation to ensure reusability in similar environments. It is expected that similar organisations will benefit from the proposed methodology for classifying the customer knowledge in academic libraries and the associated evaluation methodology for design and development of integrated knowledge based systems which in turn will support emerging processes within the organization.

 

Keywords: Knowledge taxonomy customer knowledge management knowledge management in library evaluation of customer knowledge innovative services academic libraries

 

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