Intellectual capital: Management approach in ICS Ltd

摘要

Purpose - The purpose of this paper is to demonstrate how the ICS intellectual capital methodology was developed starting from the underpinning academic theory. Design/methodology/approach - The approach is founded upon a number of theoretical strands. The basic intellectual capital approach is based on a development of the resource based theory of the firm. Most intellectual capital approaches have problems with meaningful measurement. ICS addresses the valuation of intellectual capital resources by using axiology and multi-attribute value theory to produce a valuation framework and measurement theory to ensure that the results are reliable. Findings - The ICS intellectual capital approach generates navigators (maps) of how resources are used in companies which have proven to be very useful. It has also demonstrated the value of deeper analysis of the intellectual capital resources. The measurement part, which is often used independently (known as the Conjoint Value Hierarchy (CVH), is shown as a powerful aid to decision making as well as to more straightforward valuation. Research limitations/implications - The limitations are that the navigator and its associated analyses are non-rigorous while the CVH is rigorous, transparent and auditable. This mismatch can lead to problem and the challenge is to integrate them. Originality/value - While parts have been reported previously, this paper is the first integrated review of ICS' methodology.