The most widely used definition of intellectual capital is knowledge that is of value to an organization. There is no commonly agreed definition of intangibles the. Journal of intellectual capital capital intelectual. Intellectual capital can be defined as the total of intangible assetsthat is, all the invisible, nonmonetary assets held by an organization that are amassed over time, not included in the balance sheet, and can be identified and analyzed separately. Intellectual capital can be defined as intellectual resources that have. Feb 09, 2020 capital is the lifeblood of a corporation. Article pdf available in international journal of learning and intellectual capital 101. This is all the money your company has access to and the valuation of everything it owns. Intellectual capital is knowledge that can be exploited for some moneymaking or other useful purpose. The term combines the idea of the intellect or brainpower with the economic concept of capital, the saving of entitled benefits so that they can be invested in producing more goods and services. A critical approach on definitions and categorization 58 capital and on the other hand, the book value suffers both the influence of accounting system and international accounting standards. Pdf purpose the purpose of this paper is to develop a conceptual framework that can be used to formalise a reporting model for intellectual capital. Intellectual property is the value of a company or organizations employee knowledge, skills, business training or any proprietary. Its main elements are human capital, structural capital.
It is the sum and synergy of a companys knowledge, experience, relationships, processes, discoveries, innovations, market presence and community influence4. Global psychological capital global psychological capital reflects your passion for diversity, quest for adventure, and your selfassurance. Intellectual capacity definition and meaning collins. Only owing to its implementation, productivity of material and financial resources grows. It allows a business to maintain liquidity while growing operations. Therefore it is possible to develop a tentative new balance sheet as shown in figure 2. The idea that competitive advantage is gained through the application of intellectual. Intellectual definition of intellectual by merriamwebster. Intellectual definition is of or relating to the intellect or its use. Here, the intellectual capital is a debt item which is regarded in the same way as equity. The idea that competitive advantage is gained through the application of intellectual capital, is a main driver for enbridges participation. A primer on intellectual capital asian development bank.
Intellectual capital is the intangible value of a business, covering its people human capital, the value relating to its relationships relational capital, and everything that is left when the employees go home structural capital, of which intellectual property ip is but one component. Progressive managers consider intellectual capital management icm and knowledge management km to be vital for sustained viability. Characteristics of intellectual capital although intellectual capital is similar to tangible assets in its potential for generating future cash. Relational capital is the external linkage of the company with suppliers and customers that enables it to procure and sell goods and services in an effortless manner. Collective knowledge whether or not documented of the individuals in an organization or society. Understandably, the term intellectual capital from a human resources perspective is not easily translatable into financial terms. Intellectual capital meaning in the cambridge english. Human capital, a broad term that generally includes social, instructional and individual human talent in combination. Organizational capital are elements of organizational culture that are independent of employees. This briefing will follow the approach adopted by the meritum guidelines for managing and reporting on intangibles and will use intangibles and intellectual capital interchangeably. It is based on the assumption that intellectual capital does not produce any value. Intellectual capital is the intangible value of a business, covering its people human capital, the value inherent in its relationships relational capital, and everything that is left when the.
For all other assets of a company, there exists standard criteria for expressing their value. Substantial differences between company book values and market values indicate the presence of assets not recognised and measured in company balance sheets. Various theories use names like knowledge or intellectual capital to describe similar concepts but these are not strictly defined as in the academic definition and have no widely agreed accounting treatment. Pdf the purpose of this paper is to examine a number of major theoretical and empirical contributions in the field if intellectual capital with an. The theory of intellectual capital has emerged in the past decade in response to the growing realization of the importance of information and knowledge because ntellectual capital was first conceptualized during the same time period that the ideas of knowledge management and human capital became an important part of organizational discussion. The employees cannot have a dollar figure placed on them, but they do hold value for a company. The following are the primary types of intellectual capital. The nursing intellectual capital theory proposes the stocks of nursing knowledge within an organization are embedded in two concepts, nursing human capital and nursing structural capital. The intellectual capital in addressing current or projected states. A theory of intellectual capital louise harris, 2000. Ic focuses on renewing and maximising the enterprisewide value of intellectual assets. Intellectual capital is used to create intellectual capital is given by stewart 1997, p.
This is a type of intellectual capital that includes any structures that help employees to be more productive and creative. Measuring and reporting intellectual capital research team. For this reason, finding one clear definition for the icm is quite hard. Oct 01, 2011 pashar and shachar proposed that the five components of national intellectual capital were human capital, market capital, process capital, renewal capital, and financial capital. The city of houston, texas successfully underwent a similar evolution in the 1980s. Intellectual capital is a way of measuring a firms intangible assets that cannot be shown on a balance sheet. Pdf nursing intellectual capital theory semantic scholar. One of the most short and snappy definition of organizational capabilities. Another way of measurement of intellectual capital belonging to synthetic methods is knowledge capital earnings kce.
Apr 10, 2020 intellectual capital is a term used to describe the portion of the value of a company that does not include physical property. Human capital is often considered part of intangible or intellectual capital more and more essential in a knowledge economy and society which is defined as the total knowledge of an. Asia pacific intellectual capital centre defines on its page that intellectual capital management icm consists of. The schemes that can be applied singly or across the three types relate to 14value creationthe strategic generation of knowledge and its conversion into valuable forms. The purpose of this paper is to describe the development and validation of an instrument for measuring intellectual capital in the academic research context. In many cases, people dont like to be referred to as capital. Nov 17, 2017 a definition of organizational capital with examples. The intellectual property system helps strike a balance between the interests of innovators and the public interest, providing an environment in which creativity. It is the sum of everything everybody in a company knows that gives it a competitive edge. Generally, capital is used to refer to physical assets in business. This paper presents the operationalization of concepts in the nursing intellectual capital theory and the results of a methodological study aimed to empirically validate the concepts. Nov 18, 2017 intellectual capital is the intangible value of a business. Intellectual capital managements definition is multidimensional and it involves a lot of different processes and actions.
What is essential to make this approach viable is the analysis. Sep 05, 2018 this video explains what intellectual capital is and its meaning and definition for your professional development and management get a free download pdf of 7 instant tips to be a more confident. This video explains what intellectual capital is and its meaning and definition for your professional development and management get a free download pdf of 7. Intellectual property definition of intellectual property. The knowledge, knowhow, abilities and creativity of employees. Global intellectual capital global intellectual capital reflects your global business savvy, your cosmopolitan outlook, and your cognitive complexity. The term intellectual capital collectively refers to all resources that determine the value of an organization, and the competitiveness of an enterprise. Intellectual capital is the intangible value of a business.
Is a set of analytic processes that enables the management of an organizations performance to achieve preselected goals. Intellectual capital is just like this but instead of money, its the total of a companys knowledge. It consists of factors other than the physical ones that contribute to the value generating process of a firm. Together they represent stores of value that are the basis of an organizations value creation. Intellectual capital definition in the cambridge english. Integrating intellectual capital and knowledge management. Recent practices support this notion and have provided important approaches and tools. The objective of this paper is to analyze both definitions of the intellectual capital and the. Examples of this include industry insights, trends and forecasts. Nursing intellectual capital theory conceptualizes the sources of nursing knowledge available within an organization and delineates its relationship to patient and organizational outcomes. The intellectual capital that was at work in the higher level of the u. Intellectual capital the commitment and competence of workers is embedded in how each employee thinks about and does work and in how an organization creates policies and systems to get work done. First, intellectual capital is a firms only appreciable asset. Intellectual capital an overview sciencedirect topics.
1427 883 1230 1078 789 1536 1530 330 1142 1372 533 1616 1098 564 493 1322 553 355 684 334 1318 1489 13 1433 1190 478 747 654 1161 136 1300 1453 884