Showing papers on "Organizational capital published in 2010"

Corporate mission, corporate policies and business outcomes: evidence from Japan

Abstract: Purpose – This study sets out to explore questions such as: “Does mission statement matter? If so, in what ways?” Using data on mission statements of 128 large Japanese firms, the paper aims to show that corporate mission has a significant impact on corporate policies that determine employment, board, and financial structures.Design/methodology/approach – The paper provides evidence that strong‐mission firms are more likely to retain incumbent employees, promote managers from within firms, and have less debt and a higher percentage of interlocking shareholdings than weak‐mission firms.Findings – The evidence supports the view that strong‐mission firms value their organizational capital and thus tend to adopt policies to preserve it. It also confirms that corporate mission and its embedded policies contribute to better corporate performance. The paper suggests that the effect of explicit corporate mission and its implementation has practical impacts in corporate policies and business outcomes.Research limi...

Crossing Boundaries Creating Community College Partnerships to Promote Educational Transitions

Abstract: Community college partnerships with institutions in other educational sectors (including schools and universities) are important and strategic ways of meeting the educational needs of college constituents and maximizing resources to achieve local and state economic development goals. Understanding what is required for effective partnerships is important in determining when and how to engage in these collaborative, but sometimes costly, arrangements. This article presents a model of partnership development that emphasizes the role of social and organizational capital in the formation of partnership capital that contributes to the long-term success of collaborative efforts.

The Impact of Intellectual Capital on Value Added for Brazilian Companies Traded at the BMF-BOVESPA

Abstract: Given the findings that the market value of companies has been presenting some reasonable discrepancies when compared with its book value, mainly in the last two decades, researchers have sought answers to the causes of those disparities. There is consensus that one of the reasons for the signifcant differences in the amounts of market value and book value is due to intangibles that are not included in the balance sheet of companies. One of the intangible assets deemed to be relevant is intellectual capital and the aim of this study was to test variations of Ohlson model for public companies operating in Brazil. The sample for this study is compound by companies whose stocks are traded at the Sao Paulo Stock Exchange (BMF-BOVESPA). Information about the relevant variables has been researched for the years from 2003 up to 2007, and the main source has been the Economatica data basis. Particularly the variable concerning the number of employees has been picked up from Bloomberg’s data basis. Intellectual capital is a construct (variable not observed directly) whose components are human capital, relational capital, and organizational capital. The variables chosen for the human capital were the number of employees (Func), sales per number of employees (V_Func), and the net profit per number of employees (LL_Func); for the relational capital, which has adapted to customer capital as it is clarified in the methodology, it was the sales growth rate (TCres); and, for the organizational capital, which has adapted to process capital as it is clarified in the methodology, they were the sales and administrative expenses by number of employees (DAV_Func), and the administrative expenses by number of employees (DA_Func). The statistical procedures have been developed through five models, in which the independent variable was the value added (VA): 1 - control variable: net profit (LL); 2 - human capital: (Func), (V_Func), (LL_Func); 3 - customer capital: (TCres); 4 - process capital: (DAV_Func), (DA_Func); 5 - human, customer and process capital: (LL), (Func), (V_Func), (LL_Func), (TCres), (DAV_Func), (DA_Func). The main results indicate that model 1 which evaluates the relationship between the value added by the company and its net profit is corroborated. Model 2 which includes variables linked to human capital does not provide a substantially better result than the first model. Model 3 which evaluates whether the value creation can be explained by a variable linked to customer capital was corroborated just for one year (2007). Model 4 which evaluates the impact of process capital variables on the value creation was corroborated just for one year (2006). Model 5, which embodies simultaneously in the regression all the variables of human capital, customer capital, and process capital to explain value added, indicates a significant influence of several intangible variables on value creation.

Foreign Ownership and Corporate Restructuring: Direct Investment by Emerging-Market Firms in the United States

Abstract: This paper examines the recent upsurge in foreign direct investment by emerging-market firms into the United States. Traditionally, direct investment flowed from developed to developing countries, bringing with it superior technology, organizational capital, and access to international capital markets, yet increasingly there is a trend towards “capital flowing uphill” with emerging market investors acquiring a broad range of assets in developed countries. Using transaction-specific information and firm-level accounting data we evaluate the operating performance of publicly traded U.S. firms that have been acquired by firms from emerging markets over the period 1980-2006. Our empirical methodology uses a difference-in-differences approach combined with propensity score matching to create an appropriate control group of non-acquired firms. The results suggest that emerging country acquirers tend to choose U.S. targets that are larger in size (measured as sales, total assets and employment) in years preceding the acquisition. Compared to matched non-acquired U.S. firms, target sales and employment decline while profitability rises in the years following the acquisition, suggesting significant restructuring of the target firms.

A Task-Based Approach to Organization: Knowledge, Communication and Structure

Abstract: We bridge a gap between organizational economics and strategy research by developing a task-based approach to analyze organizational knowledge, process and structure, and deriving testable implications for the relation between production and organizational structure. We argue that organization emerges to integrate disperse knowledge and to coordinate talent in production and is designed to complement the limitations of human ability. The complexity of the tasks undertaken determines the optimal level of knowledge acquisition and talent. The relations between tasks, namely, complementarities or substitutabilities and synergies, determine the allocation of knowledge among members of the organization. Communication shapes the relation between individual talent, and governs the organizational process and structure that integrates disperse knowledge to perform tasks more efficiently. Organization structure can also be deliberately designed ex ante to correct bias of individual judgement, the extent to which is dependent on the attributes of tasks. Organization process and the routinized organizational structure are the core of organizational capital, which generates rent and sustains organizational growth. This task-based approach enriches the existing body of organization studies, in particular the knowledge-based theory of the firm and the dynamic capabilities theory.

High performance work systems and organizational innovative capabilities in the PRC: The mediating role of intellectual capital

Abstract: The purpose of this study is to develop a systematic understanding of the mechanisms by which high performance work systems (HPWS) facilitate organizational innovative capabilities. Using knowledge based view of the firm, we introduce the important role of intellectual capital in examining that issue. Drawing on empirical analysis conducted at 164 Chinese firms, the results confirm that HPWS influence organizational innovative capability through different dimensions of intellectual capital (human, organizational and relational capital). We find that organizational capital and relational capital mediates the relationship between HPWS and innovative capabilities. Contrary to the hypothesis, human capital doesn't play a mediating role in that relationship. Our findings support, as well as extend the strategic human resource management (SHRM) literature and resource based view (RBV) of the firm as whether, why and how HPWS can develop a competitive advantage based on innovation.

Towards a Measurement Scale for the Voluntary Disclosure of the Intellectual Capital

Abstract: The objective of this paper is twofold. First, we conceptualize the perceived value of intellectual capital disclosure into four components: human capital, relational capital, organizational capital and competitive capital. Second, we develop a scale to measure the value of the intellectual capital disclosure.

The key factors to the successful generation of intellectual capital: the bank corporate loans department example

Abstract: This study attempts to find a systematic approach to determining the key success factors of intellectual capital in banking corporate loans departments in Taiwan. In the first stage this is approached through the review of the literature, and two-stage Delphi interviews of experts in the field. Through analysis of the returned data, a framework of key success factors to the successful generation of intellectual capital was derived. In the second stage, the framework established in stage one was converted for multi-level decision-making analysis using AHP, and also by SJT questionnaires to the panel of experts to determine relative weightings of the factors measured. The results of this cross-examination found that the key success factors determined by the respondents did not vary under different testing methods. The human capital value category had the greatest affect on the generation of intellectual capital at a value of 37.7%. This was followed by organizational capital value at 31.4% and then the lowest value of relations capital at 30.9%. Of the respondent categories, human capital value was most important to the bankers interviewed at 58.83%. Accountants placed highest importance on organizational capital value at 47.52% and for venture capitalists/underwriters the most significant was relations capital value at 53.77%.

On the Dynamics of Organizational Mortality: Age-Dependence Revisited

Abstract: This paper proposes a novel theoretical framework to model the dynamics of organizational mortality The main theoretical contribution is a clarification of the relations between organizational fitness, endowment, organizational capital and mortality hazard If the mortality hazard is a function of the stock of organizational capital, and the rate of accumulation of organizational capital is function of the level of organizational fitness, organizational fitness becomes the key factor in predicting the evolution of the mortality hazard The paper demonstrates how this new perspective can cast a new light on the much studied relation between organizational age and the hazard of organizational mortality

Innovation, Adoption, Ownership, and Productivity: Evidence from Ukraine

Abstract: How do new and foreign firms achieve superior productivity? Do they conduct more and better R&D? Or do they distinguish themselves through computerization and organizational capital? We investigate the determinants of and returns to several types of investment, using a panel of over 40,000 Ukrainian industrial firms in 2000-2007. Foreign firms engage in more non-technological investment and IT and less in R&D than domestic private firms. Similarly, new firms invest more in non-technological capital and IT and less in R&D than initially state-owned firms. Productivity gains from R&D and non-technology investment are insignificantly different across ownership types, whereas foreign firms achieve much higher returns to IT investment than other firms. These results suggest that foreign firms outperform others via organizational capital that is better able to exploit IT investment. New firm productivity growth is a result of higher investment volume rather than investment efficiency.

Transformation of human resources into human capital–base for acquring competitive advantage

Abstract: The time when the organizations could treat their employees as plain resources – as labor force, belongs to the past. The development of the production forces and relations and the globalization fostered the awareness of the employees in regard to their personal fulfillment. The need for every employee to give constructive and concrete contribution to the joint revenue (personal and that of the organization), which should be viewed on the level of the total society, is obvious. Thereat this impact should not be observed only on the organizational level, but on a level of the whole society and country. Therefore, the treatment of the employees as of an easily replaceable resource should be changed. A place should be yielded and enough space should be given to the change of the relationship that the organizations still have in regard to their employees whom they believed to be an easily replaceable resource. Now is the time to treat and respect the people in the organizations as any other organizational capital due to the fact that the other capital, whose value can be easily calculated, cannot be approached without an adequate refinement on the side of the people. Bereft of their assistance, this capital will remain inert and unexploited. This is why the employees should be treated as Human Capital and not as human resources under the control of the organization. Organisations have to find a way to include this advantage into their own strategy in order to be in step with the society developement.

Kekuatan Kapital-Kapital Kelembagaan: Belajar dari Dua Koperasi Sukses

Abstract: Organizational performance has always been viewed based on physical capital, such as money or assets This is certainly not adequate because it ignores other aspects, such as intelligence, cooperation, trust, and so forth POPIS (physical capital, organizational capital, political capital, intellectual capital, sociocultural capital) conception offers a more comprehensive perspective on the various capital that affect organizational performance But, in fact, among the various capital, there are some capital that is more dominant than the other capital-capital SBW and KGJ cooperative performance clearly demonstrate the dominant role of socio-cultural capital in influencing the success of those two institutions

Vers Un Modèle De Cartographie Stratégique Intégrant Une Typologie Généralisée Des Capitaux

Abstract: The standard strategy map proposed by Kaplan and Norton, with the balanced scorecard approach, is mainly shareholders focussed and uses only three intangible capitals : the human capital, the information capital and the organizational capital. Using the broader theoretical view of sustainable development, this model can then be revisited. We propose to systematize the use of tangible and intangible capitals, and add other concepts used by the GRI and ISO 26000 (social responsibility) standards, by the triple bottom line model, and by the EFQM (European Foundation for Quality Management) excellence framework. The new strategy map obtained is then able to synthetize several fields of the academic literature useful for the global performance appraisal.

On the Dynamics of Organizational Mortality: Age Dependence Revisited

Abstract: This paper proposes a novel theoretical framework to model the dynamics of organizational mortality. The main theoretical contribution is a clarification of the relations between organizational fitness, endowment, organizational capital and mortality hazard. If the mortality hazard is a function of the stock of organizational capital, and the rate of accumulation of organizational capital is a function of the level of organizational fitness, organizational fitness becomes the key factor in predicting the evolution of the mortality hazard. The paper demonstrates how this new perspective can cast a new light on the much studied relation between organizational age and the hazard of organizational mortality.

Investigation and analysis of organizational capital and technology innovation in Chinese enterprises

Abstract: The status of organizational capital, tacit knowledge transfer and technology innovation were investigated based on the investigation of domestic equipment-manufacturing enterprises. The impact of organizational capital, tacit knowledge transfer on technology innovation were analyzed by empirical data, the difference of technology innovation between enterprises at different levels of organizational capital and tacit knowledge transfer were identified, and then issues in investigation were discussed. The result is useful for enterprises to recognize the relationship between organizational capital and technology innovation, and also provides theoretical support for the technology innovation practice.

Organizational sustainability- based social organizational capital for environmental and economic development

Abstract: In this paper it is analyzed the organizations� sustainability which are committed to the exploitation� activities of tule Thypha spp at the Zapotlan�s Lagoon and its socioeconomic and environmental impact in the municipalities of Gomez Farias and Zapotlan el Grande. The initial hypothesis delimits the consideration of the scarce social capital of the organizations which limits development�s sustainability, although it contributes to the increasing of incomes for more than 300 families in San Sebastian del Sur and in a small scale in Cd. Guzman. The research method employed is the ethnographic complemented with field work supported by informal interviews, documental and bibliographic research. The main conclusion is that there is not equilibrium between organization�s sustainability due to scarce social capital and environmental and economic development sustainability which should be considered for the rehabilitation program of the Zapotlan�s Lagoon in order to improve the life quality levels of around three hundred families which are dependable of cultivation and art craft exploitation of tule. Besides, it is suggested that in order to give more sustainability to the micro and small art crafts enterprises the creation of a consultancy program of art craft products exports derived from the tule on the effect to increase the added value which are proportioned by the proper management of commercialization processes in international markets. Although it was not explicit in the research objectives, however it was found that the scarce organizational social capital and the lack of adequate forms of organization for productivity contribute to limit the scope and economic benefits which must give an adequate exploitation of tule of the Zapotlan´s Lagoon.

Corporate management analysis and evaluation of unique enterprise group

Abstract: Four kinds of firm resources, financial capital, physical capital, human capital and organizational capital are emphasized as the source of enterprise competitive advantages in business, however, human capital is not particularly considered as an important resource [2]. However, the importance of human capital has been attracting attention recently. Unfortunately, this concept of human capital is not still clear due to un-established evaluation methods and low recognition and awareness by chief executives [1]. On the other hand, most companies from start-ups to large companies have tried to be innovative and create new businesses, however, unique companies, those who play an active role in international market due to their cutting edge technologies, clearly stand out from other companies. According to a questionnaire survey of CEOs of unique companies, these CEOs enthusiastically concentrate on managing three kinds of viewpoints, new technology/business development, marketing activities, personnel/organizational management, and especially they make great account of managing human capital[3] [4] [5] [6]. The objectives of this report are to clarify management philosophy and behaviors of CEOs of unique companies and make clear the importance of human capital in business.