IC and public sector: a structured literature review

Purpose– The intellectual capital (IC) literature argues that introducing the IC concept into a company focusing on measuring can be detrimental and lead to IC “accountingisation”. Using Chaminade and Roberts’ (2003, p. 747) concept of IC accounting “lock-in”, the paper asks “is it possible for an organisation initially to implement and “lock-in” IC accounting practices and subsequently “un-lock” IC through a more strategic managerial approach?” The authors also investigate if and how, after IC has been “un-locked”, can a new IC “locking-in” process occur? The paper aims to discuss these issues.Design/methodology/approach– The authors present an interpretive case study of implementing a system for measuring and reporting IC in an Italian public sector utility company. The analysis uses Actor-Network Theory (ANT) to analyse data and discuss findings which is an appropriate theory for case studies using an interpretive approach.Findings– The findings are contrary to Chaminade and Roberts (2003, p. 733) because the authors challenge the notion “that a dominant accounting perspective can lead to an excessive focus on measurement issues and little attention to management processes”. The evidence from the case study shows how at times a dominant focus on accounting for IC is necessary, especially to allow newcomers to take stock, and make sense, of IC. The analogy is much like comparing accounting vs managing IC to the concept of the chicken and the egg: what comes first?Research limitations/implications– Because the study looks at IC over time, it allows the authors to develop different insights into IC “because IC is not an event, but a journey” (Dumayet al., 2015). Thus, the critique of Chaminade and Roberts (2003) and other IC research based on a short time period is that it does not allow researchers to fully follow the IC’s impact on an organisation. Additionally, the authors also highlight the role academic researchers can play in understanding how IC works inside organisations, especially when the authors examine how deeply (or not) a researcher intervenes in implementing solutions (see Dumay, 2010).Practical implications– The research exemplifies how IC can make a difference for public sector organisations because there is a need for studies such as the authors which exemplify how to introduce the IC concept into public sector organisations and at what point should the IC concept “enter” the organisation (see also Secundoet al., 2015). Doing so re-emphasises that IC is not an ostensive concept. Rather, “IC is part of a configuration of knowledge management and actively mobilised to condition effects” (Mouritsen, 2006) and to make a difference (Tull and Dumay, 2007).Originality/value– This paper is a must read for academics and practitioners seeking to understand how to introduce the IC concept into an organisation.

This chapter provides an overview of Intellectual Capital (IC) in practice and beyond. It focuses on the role of IC in organizations and between organizations, institutions and beyond. Arguably, IC is having a resurgence, because a new reporting framework Integrated Reporting (IR) makes use of IC as part of its six capitals framework International Integrated Reporting Council (IIRC). The chapter examines the path that critical IC research has followed from its conception until today and reflects on the possible future path for critical IC research. In order to extend the frontiers of IC research beyond 'what is' into stage three research investigating IC in practice from a critical and performative perspective, and stage few research influenced by critical social and environmental accounting, a number of future research avenues are explored within the New Zealand public sector. Given a general acceptance of IC, understanding how the public sector views IC will become increasingly important.

Purpose– The purpose of this paper is to provide a holistic picture of how and to what extent Cohen and Levinthal’s (1990) seminal article on absorptive capacity was used in knowledge management (KM) and intellectual capital (IC) research from 1990 to 2013.Design/methodology/approach– In this paper, 186 articles extracted from eight KM and IC journals were reviewed by conducting both content and text analyses. To facilitate research comparison, content analysis followed the method used by Robertset al.(2012) and thus was based on categories, conceptualizations, levels of analysis and, additionally, temporal evolution of absorptive capacity from 1990 to 2013 was looked at. Text analysis was performed to identify major research themes developing the absorptive capacity construct.Findings– Finding showed that absorptive capacity was largely underdeveloped in the KM and IC fields. KM, knowledge transfer and innovation were the top three research areas investigating absorptive capacity in the KM and IC fields.Research limitations/implications– This study had limitations related to time frame, covering a period from April 1990 to November 2013, and accessibility of articles due to specific restrictions in journal subscriptions.Originality/value– This paper is a first attempt to review absorptive capacity in KM and IC research. It represented a primary reference for those interested to research absorptive capacity in the KM and IC fields.

Purpose This conceptual paper proposes an intellectual capital (IC) framework dedicated to elite athletes (EA) to demonstrate the usefulness of IC on individual persons. Thus, it connects EA with the concept of IC.Design/methodology/approach The paper is inspired by the classical IC dimensions (human capital, structural capital and relational capital), which are used to develop the IC framework for EA. An exemplary case study is used to validate the framework.Findings It is argued that there is a need to adapt the traditional IC framework for EA. Therefore, this paper proposes a specific IC framework consisting of natural capital, sports capital and media capital.Research limitations/implications This paper deals with EA and the sports industry, but should be extended to other sectors where aspects such as image and celebrity represent significant intangible resources.Practical implications The proposed IC framework can help EA and their managers to better understand how IC value is created.Originality/value This paper extends the IC concept to other fields of application, i.e. EA, and thus individual persons.

This study brings together public and private sector research on change management to highlight the important role of public servants as recipients of change, which is underemphasized in the public management literature. In doing so, we identify and operationalize factors of managing successful change—involved communication and change recipients’ beliefs. The effect of involved communication on developing employees’ readiness for change is explored. Data were collected from public sector research and development organizations in Pakistan. The results of the structural equation modeling support the positive role of involved communication in developing employees’ readiness for change. Employees’ organizational identification and change recipients’ beliefs also exhibit a significant mediating role in the above-stated relationship. This study significantly contributes to the existing literature of change management in the public sector by focusing on employees as key players in an organization’s change process. Practical implications and future research directions are also discussed.

Intellectual capital is a unique resource, categorized in intangible assets, so that not all companies can replicate it. Then the intellectual capital is a key resource for the company to create value added which will further creating a competitive advantage. Intellectual capital can be used as an indicator of the success of the company's financial performance. The company is able to manage and utilize the available resources, to create added value for the company so that the company's financial performance will increase. The purpose of this study was to determine the influence of intellectual capital consists of Human Capital, Structural Capital and Customer Capital on the company's financial performance is measured by using the approach of return on assets (ROA). Sample is the banking industry, which is listed on the Indonesian Stock Exchange (IDX) period 2008 - 2012 there were 22 companies. Data is the banking industry's financial statements in the period 2008-20012 are listed in Indonesia Stock Exchange (IDX). Using multiple regression analysis, intellectual Capital measurement model is using a model Pulic (1998) i.e. Value Added Intellectual Co-efficiency (VAICTM) as well as elements of Human Capital Value Added (VAHU), Customer Value added Capital (VACA), and Structural Capital Value Added (STVA). The results showed, partially (1) Human Capital (HC) effect on the financial performance of +2.085 regression coefficient, that means the higher Human Capital (HC), the better the financial performance. (2) Customer Capital (CC) effect on financial performance of + 3.568 regression coefficient. It means the higher Customer Capital, the better financial performance. (3) Structure Capital (SC) effect on the financial performance of positive regression coefficient 2.064. This means that the higher the Capital Structure, the higher the company's financial performance. Simultaneously measured by the Intellectual Capital Value added efficiency (VAICTM) consists of Human Capital (HC), Customer Capital (CC) and Structure Capital (SC) significant effect on financial performance as measured by return on assets (ROA) of: ROA = 0.089 + 0.112 (HC) + 1.501 (CC) + 0.708 (SC). The Intellectual Capital component Human Capital, Customer Capital and Structural Capital affect the company's financial performance 72.20 %, while the rest is influenced by other factors.

Purpose The increasing importance of the circular economy has highlighted the need to incorporate circular practices into companies’ intangible assets. However, academic literature has not yet fully explored the integration of circular economy principles within intellectual capital (IC) frameworks. This study aims to fill this gap by introducing a novel construct – Circular Intellectual Capital (CIC) – that integrates circular economy principles into the broader IC framework. Specifically, it seeks to explore the extent of CIC disclosure (CICD) in non-financial reports and identify the factors influencing the level of such disclosure. Design/methodology/approach This study develops a novel CIC framework that integrates circular economy principles into traditional IC. It then conducts a manual content analysis to assess the level of CIC information disclosed by 86 Italian listed companies from the MF Italy100 – Large and Mid Cap index through their non-financial reports. Finally, a regression model is employed to examine the determinants of CICD. Findings The empirical results indicate that Italian companies exhibit a low level of CICD. Moreover, the findings show that firm size and firm profitability positively influence the amount of CIC information disclosed, while financial leverage has no significant impact on CICD. Practical implications This study provides practical guidance for companies on how to strengthen their CIC by integrating circular economy principles into human, organizational, and relational capital. Doing so enables firms to enhance sustainability performance, embed circularity into their strategic processes, and build capabilities for long-term value creation. Moreover, companies should actively communicate their CIC to improve transparency, reinforce stakeholder trust, and strengthen their competitive positioning in the transition to circular business models. Originality/value The originality of this study lies in the development of CIC, a novel construct that integrates circular economy principles into traditional IC. This innovative approach bridges two key fields – IC and the circular economy – offering new insights into how companies can align their intangible resources with sustainable and circular practices. Additionally, this study contributes to the literature by analyzing the extent of CICD and its determinants, thereby offering a fresh perspective on corporate transparency in the context of IC and circular economy initiatives.

Background: Given the persistent challenges to the higher education business model, private higher education institutions (PHEIs) are exploring myriad ways to increase enrolment and income, while aggressively managing spending. Many PHEIs are facing financial distress and struggling because of decreasing budgets and declining revenue. Thus, carving unique strategies that direct the institution to focus on its core competencies, making additional budget cuts without compromising quality, developing new revenue streams, embracing new technology, and offering affordable programs, will ultimately lead to financial success. Frugal innovation (FI) can shed light on these challenges.Methods: This paper presents a systematic literature review to investigate and analyse prior research that focused on FI within the sphere of intellectual capital (IC) and information technology capabilities (ITC) research, and their relationships in PHEIs. Transfield’s five phases were employed to extract journal articles published over a thirty-year period (1990 to 2020) from major online databases using keyword searches. Although an initial search generated 76,025 papers, the search for IC and FI yielded 41 papers, and finally only two papers were selected as they clearly related IC with FI.Results: There was a research gap in the literature published from 1990 to 2020 regarding IC applications to achieve FI. This work revealed that IC and ITC research for FI in PHEI remain insufficiently explored. Conclusions: Further research is required on the evaluation model of IC, ITC and FI, methodologies, empirical analysis, and the development of measurement metrics. A limitation to this study is the number of keywords selected.

PurposeThe paper discusses the role of measurement and classification in intellectual capital research. Its purpose is to develop an alternative role for measure. The aim is to explore how measurement may be important even if it does not pretend to accurately represent and underlying reality.Design/methodology/approachThe paper is an essay on the difficulties of measuring intellectual capital. It is a conceptual, analytical paper which proposes a new approach to analyzing the roles and effects of measurement in the area of intellectual capital.FindingsThe analysis suggests that measurement of intellectual capital is difficult because it is not possible to copy its properties in a number; yet it is necessary because it allows intervention to happen since it develops a wholly new set of dimensions to manage. This dual conclusion both problematic because the search for a definitive measure of the size, value and effects of intellectual capital is impossible, yet it is also comforting because measurement helps develop the actions that can be made in the name of intellectual capital.Research limitations/implicationsThe central implication is that research should be explicit about the status of measurement in intellectual capital research since measurement does not primarily represent an underlying reality to be reported by intellectual capital. This directs attention to different purposes of measurement.Originality/valueThis paper explores alternative roles for measurement and suggests that it is necessary to study how measurement is input to management decision making more than a representation of an underlying reality.

Purpose The purpose of this paper is to explore the extent to which the practice of integrated reporting (IR) in organisations can be a vehicle for furthering and sustaining the practice of accounting for intellectual capital (IC). It introduces the eight papers forming this Journal’s special issue on “Extending Intellectual Capital through Integrated Reporting” that demonstrate how organisations are developing practices at the nexus of IC and IR. Design/methodology/approach The paper takes the form of a review of the eight papers, and it connects the outcomes from these papers into some future research directions based on an interpretive approach and the authors’ expertise on IC and IR. Findings The papers published in this special issue provide a useful foundation for extending the research project on IR-led IC accounting. However, there is a lack of research in this special issue that goes much beyond third-stage IC research, which is directed at strengthening IC practices inside organisational boundaries. Research limitations/implications This commentary highlights that IR provides many opportunities to reinvigorate the field of IC accounting. Insights provided in this commentary may be relevant to understand and evaluate future iterations of IC accounting. Practical implications While it is essential to understand how IR works in practice moving beyond organisational boundaries it is even more critical if companies are to survive and thrive in an increasingly turbulent business operating environment. Thus, this commentary offers arguments as to how IC and IR research can extend into fourth and fifth stage research paradigms. Originality/value This commentary places the eight papers published in the Journal’s special issue on “Extending Intellectual Capital through Integrated Reporting” within the context of IC accounting to explain the trajectory of research that connects IC and IR and reveals gaps in this field of research.

Intellectual capital has gained increasing attention, and its importance has been acknowledged widely including in Indonesia. Despite the importance of intellectual capital, several researchers emphasise the limitation of such studies in non-developed countries. Furthermore, the majority of prior studies on intellectual capital disclosures employ content analysis despite its weaknesses. Therefore, this research constructed an Indonesian intellectual capital disclosure framework, a framework based on data of Indonesia that may overcome content analysis weaknesses. Furthermore, this research also offers a new joint theoretical framework, intellectual capital theoretical framework, which may be useful for future intellectual capital disclosure research. This research contributes to limited intellectual capital disclosure research in Indonesia and provides valuable insights into the practice in Indonesia. This research also contributes to the development and introduction of intellectual capital theoretical framework and Indonesian intellectual capital disclosure framework.

The purpose of this paper is to examine the relationship between technological advances and intellectual capital improvement. Researches show that technological advances and intellectual capital have a strong relationship but this relationship has not been examined systematically. This paper reviews the important theoretical work in both streams of research, highlighting the fundamental similarities and differences. Models of intellectual capital are compared, and the distinction between social human and structural capital and customer capital is examined. The results support the view that technological advances have a positive impact on intellectual capital. Therefore, technological advances can improve intellectual capital in organizations. Key words: Human capital, intellectual capital, technological advances.

PurposeThe paper aims to provide an assessment of a tool for the macro‐level measurement of intellectual capital developed by Corrado, Hulten and Sichel (CHS model).Design/methodology/approachThe aim paper assesses the validity and accuracy of the CHS model in measuring intellectual capital in general and to see whether it has application at the national economy level.FindingsThe model's new accounting ideas have great potential, but some serious question marks remain. The key advantage of the model is that it accumulates capitalized intangibles over time. On the other hand, the elements of intellectual capital, i.e. spending on innovative property and economic competencies, software and other computerized information, are too vague and problematic.Originality/valueCHS model is a rather frequently used method for measuring intellectual capital. However, its validity has not been under critical analysis or examination earlier. Therefore, the results of this paper bring important and valuable information into reliable measurement of intellectual capital and are a step forward to develop more valid methodologies within intellectual capital research.

Evaluation:The paper contributes meaningfully to understanding Intellectual Capital (IC) across distinct sectors in Taiwan, especially regarding the sectors' varying IC compositions and their linkages with theoretical frameworks (RBV, KBV, and HCT).By analyzing Taiwan's unique industrial landscape, it provides valuable insights for the field of IC management. Suggestions:Incorporate cross-comparative data or insights on IC roles in economies with similar industrial dynamics to Taiwan.This could provide a broader basis for understanding IC's sectoral roles globally.Highlight any previously unexplored intersections between IC and specific sectoral outcomes (e.g., how RC specifically impacts customer loyalty in service sectors in ways previously undocumented). Relationship to LiteratureEvaluation: The paper demonstrates a sound understanding of existing IC literature, adequately citing key theories like RBV, KBV, and HCT, and applying them to Taiwan's industrial context. Suggestions:While it covers foundational IC literature, consider adding more recent studies, particularly those focusing on IC measurement challenges and sector-specific IC management.This could provide a stronger context for the paper's limitations section, especially regarding IC's intangible assets. MethodologyEvaluation: The paper's methodology, grounded in sector-specific analysis, aligns with its research goals.The theoretical foundation appears appropriate, and the data approach is reasonably robust. Suggestions:Enhance transparency by detailing data sources, sector-specific metrics for IC components, and the statistical methods used.This would clarify the paper's analytical rigor and facilitate reproducibility.

In the present century, intellectual capital is recognized as the most important and strategic asset for organizations. Intellectual capital is mainly based on knowledge and useful information. Intellectual capital is playing a critical role to create value from the combination of tangible and intangible assets to enhance the performance of organizations. This chapter looks at the concept and application of intellectual capital and its associated challenges of organizations in a competitive environment. More specifically, this chapter highlights the relationship of intellectual capital with the performance of organizations of various sectors. The relationship of intellectual capital was supported by empirical studies which were done by various renowned researchers in the intellectual capital field. In addition, this chapter discusses the various major components and models of intellectual capital.