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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Journal Issue
Volume 5 Issue 4 / Dec 2007  pp347‑550

Editor: Charles Despres

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Knowledge Work Practices in Global Software Development  pp347‑356

Gabriela Avram

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Intellectual Capital and Organizational Performance: an Empirical Study of the Pharmaceutical Industry  pp357‑362

Alka Bramhandkar, Scott Erickson, Ian Applebee

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Abstract

This paper directly measures the impact of intellectual capital management on organizational performance. Although this is an area widely studied in the literature, the nature of most of the work to date is to focus on specific aspects of intellectual capital (human, structural, or relational capital) and their individual impact on performance. This study specifically looks to identify firms that manage overall IC, whatever its nature, better than competitors. We then ask the question, do these firms actually see market results better than those of competitors? In order to do this type of analysis, we felt a need to focus on a specific industry. If wide differences do exist between industries in terms of physical capital needs and human, structural, or relational capital needs, then random firms are harder to compare. Those within a single industry, such as the pharmaceutical firms studied here, should have relatively similar structures in relation to all these needs. We collected data on 139 firms in the drugs industry. We sorted and divided the sample according to market capitalization and book value (a common measure of intellectual capital) then looked at return on assets, investment, and equity, as well as beta. By one measure, firms with the highest level of intangible assets clearly performed better than those with lower levels. The high level firms had significantly better returns and significantly less variability in stock price. According to a second measure, the results were less convincing but still lent support to further research using this methodology. So, as a first cut, this study had very promising results. We intend to repeat it for other industries, experimenting with the measures and means of cutting the data. Although industry‑specific is obviously the initial way to go, we also intend to perform some cross‑industry comparisons with the measures we develop. We believe the results of the full research program will be significant to practice and will provide substantial support to those championing better management of intangible assets within firms. 

 

Keywords: intellectual capital, knowledge management, organizational performance, marketbook ratio, ROA, ROE, ROI, beta

 

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From Individual Learning to Organizational Learning  pp363‑372

Delio Ignacio Castaneda, Manuel Fernández Rios

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Tacit Knowledge Elicitation and Measurement in Research Organisations: a Methodological Approach  pp373‑386

Alexeis Garcia-Perez, Amit Mitra

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Competence Matters More than Knowledge  pp387‑398

A G Hessami, M Moore

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Managing Structural Diversity: the Case of Boundary Spanning Networks  pp399‑410

Eli Hustad

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Folksonomies, Collaborative Filtering and e‑Business: is Enterprise 2.0 One Step Forward and Two Steps Back?  pp411‑418

Kevin Johnston

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A Model of Antecedents of Knowledge Sharing  pp419‑426

Radwan Alyan Kharabsheh

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A Consistent Assessment of Intellectual Capital in SMEs InCaS: Intellectual Capital Statement — Made in Europe  pp427‑436

Kai Mertins, Markus Will

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How to Ensure the Quality and Reliability of Intellectual Capital Statements?  pp437‑448

Kai Mertins, Wen-Huan Wang, Markus Will

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Knowledge and Life Cycle of an Organization  pp449‑452

Zygmunt Mietlewski, Ryszard Walkowiak

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Building a Taxonomy for Understanding Knowledge Management  pp453‑466

Kun Nie, Tieju Ma, Yoshiteru Nakamori

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Knowledge Management: Turning Intangible Assets into Feasibility in the Automotive Sector  pp467‑476

Lourdes Sáiz, Ana Maria Lara, Roberto Alcalde

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Knowledge Management for Virtual Reality Applications in a Home Rehabilitation Virtual Network  pp477‑486

Emil Scarlat, Virginia Maracine, Adriana Nica

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MaKE First Steps — How a Definition of Knowledge Can Help your Organisation  pp487‑496

Peter Sharp

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Knowledge Maps and Mathematical Modelling  pp497‑504

Tomas Subrt, Helena Brozova

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Exploration of Knowledge Sharing Challenges in Value Networks: a Case Study in the Finnish Grocery Industry  pp505‑514

Hanna Timonen, Jari Ylitalo

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Does Intellectual Capital Management 'Make a Difference'? A Critical Case Study Application of Structuration Theory  pp515‑526

John A. Tull, John C. Dumay

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Integrating Individual and Organisational Learning Initiatives: Working Across Knowledge Management and Human Resource Management Functional Boundaries  pp527‑538

Christine van Winkelen, Jane McKenzie

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

Dmitry Volkov, Tatiana Garanina

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