Purpose – Investments in intellectual capital (IC) are often linked to competitive advantages that improve economic profit and increase the value of a company. However, this effect is reciprocal: Companies that generate higher cash flow can invest more in intellectual capital. The aim of this study is to analyze a dynamic relationship between IC components and economic profit, with a special emphasis on industry specific effects in pharmaceutical, retail, steel, telecommunications, and service sectors.Design/methodology/approach – Panel vector autoregression (VAR) was used to deal with the mutual influence of intellectual capital components, the lag effect, and heterogeneity. The data was taken from Compustat database and covers the period from 2001 to 2010.Findings – This research proves that there is interaction between investments in the IC components and company performance. However there are sectoral differences: there is a positive impact of economic profit on human capital in retail; in the steel industry a mutual influence is revealed. Moreover, interaction between different IC components is detected in telecommunication and steel industries.Originality/value – This is the first study to present clear evidence of the effects of performance on IC investment decisions. The time lag in the effects of IC investments was estimated and compared for different industries. On the methodological side, the paper presents a rather simple method capable of yielding results consistent with other studies and yet rich enough to be applied to an analysis of sectoral differences in dynamic IC investment decisions.
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Purpose – This paper responds to calls to research recognising impediments to innovation practice. The paper argues that decision-making preferences by risk averse managers are a key impediment to the organisational support required for the commercialisation of new ideas, by exploring the relationship between forms of intellectual capital and innovation. As a result, categories are derived that contrast with the current grand theory that IC drives innovative practicesDesign/methodology/approach – The research critically examines cross-sectional empirical data gathered through semi-structured interviews with 27 Australian executive managers from leading Australian companies and the public sector. These interviews elicited narratives about successful and unsuccessful innovations where interviewees had significant involvement in the outcome. 54 narratives of innovation from executive managers – 27 successes and 27 failures, were analysed using the repertory grid technique to unearth patterns about the process of innovation, especially in relation to the stability of the business environment and the need for innovation.Findings – This research finds that successful innovation in a context identified as demonstrating risk averse decision-making behaviours requires different management approaches, depending on whether the innovation is radical, evolutionary or incremental. The study discovers twelve different factors contributing to innovation processes and identifies those that are more likely to contribute to the success of innovative endeavours. From this the current grand theory that IC drives innovative practices is challenged by developing an IC based differentiation theory of innovation practice.Research limitations/implications – As always, the observations and conclusions reached are limited to the 27 interviews and the Australian context. Further, findings are based on the authors’ objective analysis. As with any qualitative study the authors also caution about generalising the findings, and as with any theory it should be used to develop insights into actions, rather than prescribing them. Practical implications – For educators it highlights the need to teach students to critique innovation rather than accepting that all innovation is beneficial. For researchers it shows they must avoid success bias by investigating both successful and failed innovations, developing differentiation theories of innovation practice. The findings highlight how senior managers responsible for enabling and resourcing innovation need to develop skills for identifying the innovation type enabled, matching it to an appropriate strategic approach. Finally, for policy makers it shows how different forms of successful innovation require different approaches, and each can be encouraged, developed and enabled differently.Originality/value – The paper is novel because it addresses the interaction and complexities of the different factors that enable successful innovation and possibly contribute to innovation failures, and the types of innovation relevant to each context. This approach is in contrast to the contemporary innovation literature, which tends to focus on successful radical innovation. As a result, the paper offers a more holistic view of the diverse and interrelated factors that impact innovation success and/or failure.
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Purpose – The purpose of this paper is to investigate whether value-creating activities and intellectual capital (IC) accumulation are affected by different business models. Design/methodology/approach – Field visitations and interview-based questionnaires are used for data collection. This study uses the structural equation model to examine Taiwanese original equipment manufacturers (OEMs) and original brand manufacturers (OBMs) in China. Read more
Tags: business models
, value-creating activities
The article fills the gap in innovation studies about design management dynamic capabilities analysing tensions in design decision making. ‘Ambidextrous organisation’ frame has been employed to report the system of tensions central to the design management. The research is based on the qualitative analysis of cases carried out in two phases. Read more
Tags: dynamic capabilities
, design management
Publishers note(FSG) Its from Taiwan, but nonetheless holds important lessons for African governments implementing e-government initiatives.
Information and communication technologies (ICT), particularly the internet, can be leveraged to enhance the offerings of e-government initiatives beyond simply providing access to information and services. The adoption of ICT could foster changes in the service concept, delivery system, and client interface of e-government initiatives. Read more
Tags: innovation activities in e-government initiatives
Purpose – The purpose of this paper is to tackle the problem of societal knowledge management from the perspective of critical management research. The focus is on national intellectual capital analysis as part of societal knowledge management. First, the aim is to identify the dominant discourse that governs the discussion around national intellectual capital and its measurement. Second, the aim is to explore the prospects for an alternative conceptualisation and to propose a heuristic tool through which it is possible to approach national intellectual capital and its measurement in a critical, informed and analytic way. Read more
Tags: critical societal knowledge management
, national intellectual capital
Purpose – The paper aims to tackle the problem of societal knowledge management from the perspective of critical management research. The focus is on national intellectual capital analysis as part of societal knowledge management. Read more
Tags: intellectual capital
, Knowledge Management