Showing papers on "Organizational capital published in 2014"

Intellectual capital and new product development

Abstract: Based on the knowledge-based view, we examined the relationships among various dimensions of intellectual capital, including human capital, organizational capital, and customer capital, and new product performance. Regression analysis was used to test the hypotheses in a sample of 93 firms. The results indicated that human capital and organizational capital are positively related to customer capital which in turn has a positive effect on new product performance. This study contributes to the theoretical development of a conceptual model by examining the mediating role of customer capital in the relation human capital and organizational capital with new product performance. The empirical evidences support our prediction and indicate that human capital and organizational capital can deliver a better new product performance primarily through improving customer capital. Managerial implications and future research directions are discussed.

Green intellectual capital and environmental product innovation: the mediating role of green social capital

Abstract: Although the importance of intellectual capital has already been highlighted in the management literature, few articles have focused on the importance of its green counterpart, green intellectual capital. Nowadays, when environmental concerns cannot be ignored by firms, it is therefore time to explore the role of green intellectual capital in environmental improvement. For that reason, our research aims to explore the relationships between green intellectual capital components and the environmental performance of the firms. In particular, we try to show the importance of green organizational and social capital in the development of environmental product innovations, which are vital to the development and implementation of environmental strategies since, as scholars have pointed out, they generate some of the greatest environmental impacts. The empirical results show that green organizational capital has an indirect impact on environmental product innovation through green social capital, meaning that the latter is a significant mediator of that relationship, and at the same time emphasizing that informal relationships play a key role in the improvement of the environmental performance of the firm and, more specifically, in the development of environmental product innovations.

ISO 9000 Internalization and Organizational Commitment—Implications for Process Improvement and Operational Performance

Abstract: This study presents an investigation of the relationship between internalization of ISO 9000 practices and the development of intellectual capital within organizations. We posit that intellectual capital, which comprises of human capital, organizational capital, and social capital, leads to improved processes in an organization. Process improvement, in turn, results in superior operational performance. Using a sample of 321 ISO 9001 certified organizations, the hypothesized relationships are tested by means of the structural equation modeling technique. The results of this study lend strong support for the hypotheses and show that performance benefits from the internalization of ISO 9000 standards occur mainly through the development of human and organizational capital, and the consequent improvement in business processes. This study discusses theoretical and managerial implications, and presents directions for future research.

Social capital as a driver of local knowledge exchange: a social network analysis

Abstract: The objective of this paper is to take an in-depth look, from a network perspective, at the role that social capital plays in improving knowledge exchange between organizations. To do this, we consider the three dimensions of social capital: the structural dimension, as measured by the position of firms bridging structural holes; the relational dimension, as gauged by the level of trust and friendship in each relationship; and the cognitive dimension, as estimated by the presence of a shared culture. We also evaluate the level of organizational and human capital present in terms of the firms in the network. Empirical evidence has been gathered from the Madrid Science Park in Spain by applying the social network analysis methodology. The results show that the three dimensions of social capital play a significant role in increasing knowledge exchange in this network, while human and organizational capital differences are only significant for a sub-sample.

Towards a better understanding of intellectual capital in Mexican SMEs

Abstract: Purpose – The purpose of this paper is to understand the characteristics of intellectual capital (IC) in Mexican small and medium enterprises (SMEs). Due to the shift from traditional factors of production to knowledge-based economy, an understanding of the role of IC has become crucial for SMEs to develop a competitive advantage. Design/methodology/approach – This study takes an in depth look at the three components of IC: human, organizational, and external capital. In order to do so, a quantitative study on 445 SMEs was conducted based on data collected through an online survey. A structural equation model is proposed that is a fit with the reality of Mexican SMEs. Regional differences are highlighted by means of multigroup analysis. Findings – The results suggest that the features of human and organizational capital are consistent with previous studies on SMEs in emerging economies. However, external capital shows some distinctive characteristics unique to Mexican context. Practical implications – Imp...

Intangible Assets and Firm-Level Productivity

Abstract: Firms invest huge amounts into intangible assets. This paper explores to which extent different kinds of intangible assets are conducive to firm-level productivity. Our study contributes to the literature by simultaneously comparing productivity effects of innovative capital, human capital, branding capital and organizational capital and testing whether complementarity or substitutability exists between different intangible assets. Using panel data for the period 2006-2010, our econometric estimates confirm strong positive productivity effects of human capital and branding capital. Results for innovative capital are found to be mixed. While R&D has a strong positive impact on productivity, design & licenses and patents show only weak productivity enhancing effects. The same holds for organizational capital. We furthermore detect several complementarities among different kind of intangible assets. Our results are robust to various parametric (OLS, FE) and non-parametric (Olley and Pakes, Levinsohn and Petrin) productivity estimation methods.

Is a VC Partnership Greater than the Sum of Its Partners

Abstract: This paper investigates whether individual venture capitalists have repeatable investment skill and to what extent their skill is impacted by the VC firm where they work. We examine a unique dataset that tracks the performance of individual venture capitalists’ investments across time and as they move between firms. We find evidence of skill and exit style differences even among venture partners investing at the same VC firm at the same time. Furthermore, our estimates suggest the partner’s human capital is two to five times more important than the VC firm’s organizational capital in explaining performance.

Intangible investment in people and productivity

Abstract: Organizational activity, information and communication technology work, and research and development (RD however, the returns to R&D are low. Investments in organizational competence are more likely to result in more rapid productivity growth. Firms with performance-related pay or domestically owned firms with extensive foreign activities have been among the highest performers with respect to the use of organizational work.

Human resource involvement in developing intellectual capital

Abstract: This study examined the extent of a strategic approach to human resource (HR) management in small and medium professional service firms, and if it is used to develop intellectual capital (IC). Data were collected from 165 Australian professional service firms. Path analysis showed that HR involvement and the adoption of a collective set of strategic HR practices contributed positively to IC levels (particularly human, social and organizational capital). IC acts as a mediator between HR practices and firm performance. HR practices alone did not increase the performance of the firms studied. The findings are unique in the context of studies on small- and medium-sized professional service firms in that a holistic approach to assessing both HR practices and all IC components was taken rather than examining the individual construct relationships. In the context studied, HR influence is critical to increasing IC.

Organizational Capital and Investment‐Cash Flow Sensitivity: The Effect of Management Quality Practices

Abstract: This paper examines the influence of organizational capital, as evident in management quality practices, on the response of firm investment to internal cash flows. We provide novel and strong evidence that investment sensitivity to internal cash flows decreases in the presence of superior management practices. We also find that superior management practices reduce the firm's financing frictions, evident in lower capital constraints. Our results are robust to numerous tests. Overall, our findings suggest that intangible organizational capital is important for investment decisions and that superior management practices contribute to value-maximizing behavior.

Market value of R&D, patents, and organizational capital: Finnish evidence

Abstract: This paper studies how knowledge and organizational capital (OC) affect the market valuation of firms. Detailed occupational information from Finnish linked employer–employee data is used to form new estimates of firms’ organizational investments. The market value of OC is analyzed together with research and development (R&D) and patent variables. A nonlinear least-squares regression is used to investigate the contribution of these variables to the market value of Finnish firms during the period 1995–2008. The results show that OC, R&D, patents, and patent citations all have positive and significant effects on market value. A particularly interesting finding is that the effect of OC appears to be even stronger than the effect of R&D investments. This study also provides internationally comparable results on the market valuation of knowledge assets that indicate that in Finland, the market valuation of R&D, but not patents, is lower than in the USA and many European countries.

Pieces of Civic Intelligence: Towards a Capacities Framework

Abstract: Civic intelligence is the capacity of collectivities — from small informal groups to humanity as a whole — to equitably and effectively address important shared problems such as poverty, bioterrorism, and natural disasters. It's an abstract concept that can be expressed in policy, art, demonstrations, or conversation. In this article, civic intelligence has been divided into five main capacities: knowledge, attitude and aspiration, organizational capital, relational and social capital, and financial and material resources. The capacities framework is intended to convey a holistic phenomenon in a relatively simple way. While the framework as it currently exists can be useful in both research and practice, it's undoubtedly not the last word. The capacities framework for civic intelligence is more of a springboard for collaboration and action than a strait jacket that imposes inflexible and unalterable discipline.

Building dynamic capabilities around organizational learning challenges

Abstract: Purpose – The knowledge that is embedded within people, relationships, and organizational routines present key, but varied, sources of capabilities needed to compete. The value of this knowledge depends on the investment costs and benefits that come as employees draw on and utilize these different forms of knowledge to respond to global challenges. But something as intangible as knowledge can be a major source of misunderstanding and mismanagement. The purpose of this paper is to develop a framework that explores the underlying path of how knowledge assets might be configured to overcome misunderstanding and mismanagement. Design/methodology/approach – The authors develop a framework to help scholars and organizations understand how to manage their different knowledge assets to ensure continual organizational effectiveness. To do this, the authors juxtapose three classes of knowledge assets – human capital, social capital, and organizational capital – against three types of learning – knowledge generation...

Managing ic in an opera house: the case of la scala

Abstract: In this paper we refer to IC as the dynamic and firm-specific system of intangible resources and activities based on knowledge, which, interacting with tangible resources, is able to generate competitive sustainable advantages, at the basis of the firm’s performance variations. We strongly believe that IC can provide a conceptual framework for managing Non-Profit Organizations (NPO), as their main inputs and outputs are intangible in nature. Inside the No – Profit area, extremely diversified sector, are traditionally included the cultural companies. These realities are themselves characterized by a great variety of typologies: museums, theatres, record labels, television companies, radio stations etc. In particular, validating the articulation of IC into the three subcategories of human capital, organizational capital and relational capital, we has the aim to decline these subcategories for the Opera Houses, underlining the specificities of the cultural organizations. In this contribution, starting from the above defined dimensions of IC we propose to understand if, in the case of the Teatroalla Scala, the Human Capital and the Relational Capital are managed “by antennae” (Donato, 2008). Furthermore we will deepen a possible evolutionary path of the measurement instruments and the model of Intellectual Capital Reporting that can be proposed to the managers of the theatre.

Sources of Firm Life-Cycle Dynamics: Differentiating Size vs. Age Effects

Abstract: What determines firm growth over the life-cycle? Exploiting unique firm panel data on internal organization, balance sheets and innovation, representative of the entire Canadian economy, we study recent theories that examine life-cycle patterns for firm growth. These theories include organizational capital accumulation and management practices, financial frictions, learning about demand, and recent endogenous growth models with incumbent innovation. We emphasize the importance of differentiating between pure age effects of these theories and effects on size conditional on age. Our stylized facts highlight both empirical successes and shortcomings of current theory. First, models of organizational capital and innovation are broadly consistent with firm size correlations conditional on age but have difficulties matching the life-cycle dynamics of firm organization and innovation. Second, among theories we analyze, organizational capital and management practices are the most important determinants to explain intensive margin firm growth over the life-cycle. Third, although less important to explain intensive margin firm growth, financial frictions are an important determinant of firm exit, conditional on firm age.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Competitiveness In Higher Education In Terms Of The Level Of Students Satisfaction With E-Learning In Blended Environment

Abstract: The intellectual competitiveness is a motto of the new information era. Higher education within contemporary conditions appearances as the leading area for the provision of competitive capabilities and competitive advantages of the company since it directly affects the creation of intellectual and organizational capital, including greater competence of personnel, i.e. greater number of employees with intellectual vacations. The paper explains the growing role of e-learning in the provision of competitive properties of higher education at the example of the International University of Travnik. It is started from the hypothesis that e-learning, as an alternative form of learning in higher education, expands the array of educational choices by strengthening the competitive position of the observed University. Also, the competitive position of the analyzed University becomes stronger with increasing degree of students' satisfaction with e-learning component in blended environment which is a

Developing and Deploying Organizational Capital in Services vs. Manufacturing

Abstract: Organizational capital is one of the three primary subcomponents of an organization's intellectual capital, which most scholars define as the sum of all knowledge and knowing capabilities firms can utilize (e.g., Nahapiet and Ghoshal, 1998; Stewart, 1997). While the other two forms of intellectual capital, human and social capital, are dependent on the firm's employees, organizational capital is the knowledge a firm has captured or appropriated to the organizational level. It consists of both explicit and implicit knowledge such as policies and procedures, patents, databases, routines, processes, work systems, and ways of doing business (Ray et al., 2012; Youndt et al., 2004), and has been shown to contribute significantly to various organizational performance and success measures. For example, organizational capital has been found to increase productivity (Black and Lynch, 2005), facilitate process replication and growth (Levinthal and Wu, 2010), improve the performance of new ventures (Bercovitz and Mitchell, 2007), aid in the development of service innovations (Froehle et al., 2000), and speed up the transfer of knowledge (Zander and Kogut, 1995). However, firms differ in their ability to create and/or capture this critical resource (e.g., Benezech et al., 2001). A principal basis for this difference is the nature of the work the firm performs. Specifically, as the levels of process variance increase, it becomes more and more difficult to capture knowledge in organizational systems and procedures because the construction of consistent routines becomes increasingly difficult (e.g., Benezech et al., 2001; Nelson and Winter, 1982). A primary driver of process variance in organizational activities is human action, as employees possess a series of individualized attributes, attitudes, and quirks that have idiosyncratic effects on work processes (Mills, 1986; Skaggs and Snow, 2004; Tansik, 1990). Human action tends to differ in two fundamental ways between service and manufacturing firms. First, most service firms sell a very human-centered labor process as opposed to a product (Batt, 2002; Skaggs and Youndt, 2004); as a result, employee-induced variance tends to be greater in service firms. And while all firms may seek to minimize the impact of this employee-induced variance via training and other HRM systems, service firms simply have more human variance to attempt to address. Plus, a well-trained human is never as invariant as a machine. Second, in addition to employee-induced process variance, customers tend to increase the level of work process variability through their direct involvement in many service production and delivery processes (Jones, 1987; Skaggs and Huffman, 2003). Again, this is in sharp contrast to manufacturing firms, where the separation of production and consumption typically allows firms the opportunity to buffer the production process from customer disturbances (e.g., Mills, 1986; Tansik, 1990; Thompson, 1967). Thus, based on both high levels of employee and customer involvement, service firms generally possess higher levels of variance in the nature of the work being performed (McLaughlin, 1996), which may impact their ability to develop and leverage organizational capital. That being said, the authors are unaware of any studies that have specifically investigated these relationships. Thus, the primary goal of this study is to better understand how the development and use of organizational capital is influenced by the differences in centrality of human action in work processes in service and manufacturing firms. The argument as presented begins with the assertion that in manufacturing, where lower levels of human action lead to decreased variance in workflow processes, firms are able to develop greater levels of organizational capital. Then, based on core tenets of the resource-based view (value, scarcity/rareness, imperfect substitutability), it is suggested that the relative difficulty in developing organizational capital in service firms may enable it to play a greater role in building competitive advantage in these firms. …

International Careers and Career Success of Indian Women in Science and Technology: The Importance of Career Capital and Organizational Capital

Abstract: This article presents a study on international careers and career success of Indian women in Science & Technology (ST (b) the motivation to gain knowledge and skills in science and technology (knowing-how) and (c) the encouragement and support from family for women’s international career pursuits, and international networks (knowing-whom). Furthermore, findings show that patriarchy entrenched in Indian society and culture resulted in a lack of organizational capital, which impede career success of women in S&T. We advise organizati...

Public and private investments in innovation capabilities : structural transformation in the Chilean wine industry

Abstract: This paper assembles novel data on the Chilean wine industry to investigate the role of investments in knowledge capital on sales growth in domestic and international markets. The study uses archival data collected from the Government of Chile to compile and categorize public expenditures and programs supporting the Chilean wine industry over the period of 1990-2012 into investment in different types of knowledge capital. These spending categories are related to industry-level sales growth. The paper finds that the most important correlate is spending on research and development. The study also uses data from a new survey of Chilean wine firms to capture information on firm-specific investments in knowledge capital. The findings show that investments in collaboration capital, in particular hiring foreign consultants, as well as participation in international wine fairs are the strongest correlates of growth in export sales, while spending on aspects of branding (local advertising and brand design) are the strongest correlates of domestic market sales growth.

Good and Bad Banks? Governance, Human Capital of Top Managers and Performance

Abstract: Spanish savings banks (Cajas) and commercial banks have experienced very different destinies. Before the crisis both types of banks shared, almost equally, most of the financial Spanish market. Cajas were performing well. Nowadays, the soundest Cajas have been forced to transform themselves into commercial banks, while the poor-performing ones have been either absorbed by rivals or rescued by the Government. Meanwhile Spanish commercial banks have overcome the crisis reasonably well. Our goal is to assess if such different outcomes are related to governance practices and the human capital of banks’ top managers. Some authors have pointed out that neither the formal governance institutions (i.e. the composition of the different governance bodies), nor the real governance (i.e. the role played by politicians) can explain these differences. We make use of an extended period data, covering both a boom period and a period of crisis, and we collect further information on chairmen’s human capital (previous banking experience, formal education, and political background) to get a better grasp of these important issues. History seems to matter and the use of a better organizational capital of the former chairmen, and the stakeholder composition can help us to get clearer results.

Analisis pengaruh intellectual capital terhadap nilai perusahaan dengan kinerja keuangan sebagai variabel intervening pada perusahaan perbankan di indonesia

Abstract: This study aims to analyze and examine the effectof intellectual capitalon firm value through financial performance as an intervening variable . The value of the company as the dependent variable was measured using a Price to Book Value ( PBV), the financial performance as measured by proxy intervening variavel return on equity ( ROE) andearnings per share ( EPS). While intellectual capital is measured using value added intelctual capitalco efficient ( VAIC TM ) , which consists of three components : human capital, organizational capital , and relational or customer capital . The objectof the research is the entire banking companies listed in Indonesia Stock Exchange ( IDX) according to defined criteria. Thenumber of samples that meet the criteria of only 29 banks with the financial reporting period from 2010 to2013. Based on the analysis and hypothesis testing , this study showed the following results : (a) Intellectual capital has an influence on the financial performance proxied by return on equity (ROE ) and earnings per share( EPS), (b) the financial performance proxied by ROE and EPS positive effecton firm value( PBV), (c) Intellectual capital has no direct influenceon the value ofthe company , and(d) Intellectual capital effectindi rectlyon firm value( PBV) throughfinancial performancereturn on equity(ROE) andearnings per share(EPS). It explains that , intellectual capital owned perusahaa n , which include; human capital , organizational capital and relational capital o r integrated customer will result inbetter financial performance , will further enhance the company's overall value .

Firm Strategy, Competitiveness and Productivity: The Case of Canada 1

Abstract: At a time when the Bank is expecting a rotation of demand toward exports and investment, and transformative global trends are placing increasing emphasis on innovation, technology and organizational learning, an understanding of the competitiveness strategies of Canadian firms and the factors affecting them has become particularly relevant. This article summarizes findings from a Bank of Canada survey of 151 firms designed to extract signals on elements of firm strategy and organizational capital in order to help inform the macroeconomic outlook.

A Comparative Analysis of Human Capital Disclosure in Annual Reports and Sustainability Reports

Abstract: In the past 20 years, accounting literature has been increasingly attentive toward company practices regarding voluntary intellectual capital disclosure (Guthrie, Ricceri, & Dumay, 2012; Wyatt, 2005) Among the three categories comprising intellectual capital, the most fully reported is relational capital, followed by organizational capital and human capital Human capital is usually the last category reported, although it has been recognized as an important factor in reducing investment risks (Wyatt & Frick, 2010) as well as developing and maintaining good relationship between companies and employees (Beattie & Thomson, 2010) Companies typically use a combination of public and private channels to disclose intellectual capital information, such as annual reports, Initial Public Offering (IPO) prospectuses, company websites, interim accounts, company announcements, and presentations to financial analysts (McInnes, Beattie, & Pierpoint, 2007)

Intangible assets and firm-level productivity

Abstract: Firms invest huge amounts into intangible assets. This paper explores to which extent different kinds of intangible assets are conducive to firm-level produc- tivity. Our study contributes to the literature by simultaneously comparing productivity effects of innovative capital, human capital, branding capital and organizational capital and testing whether complementarity or substitutabil- ity exists between different intangible assets. Using panel data for the period 2006-2010, our econometric estimates confirm strong positive productivity ef- fects of human capital and branding capital. Results for innovative capital are found to be mixed. While R&D has a strong positive impact on produc- tivity, design & licences and patents show only weak productivity enhancing effects. The same holds for organizational capital. We furthermore detect sev- eral complementarities among different kind of intangible assets. Our results are robust to various parametric (OLS, FE) and non-parametric (Olley and Pakes, Levinsohn and Petrin) productivity estimation methods.

A Study on the Organizational Entrepreneurship: A Case Study in Ahvaz University of Medical Sciences, IR Iran

Abstract: Background: Organizational entrepreneurship focuses on proactive actions, which may lead to the new productions, new services and/or new processes. Implementation of organizational entrepreneurship plans has many benefits including organizational cost reduction and the increase of organizational capital assets. Objectives: This study aimed to investigate the organizational entrepreneurship status in view of the managers of Ahvaz University of Medical Sciences. Materials and Methods: This cross-sectional study was performed on 67 of the managers of Ahvaz University of Medical Sciences. Data were gathered by a 30-item standard questionnaire. Reliability efficient of the questionnaire was 0.77. Ten dimensions of organizational entrepreneurship including innovation, conditions for demonstration of entrepreneurial behavior, detection and discovery of opportunities, level of flexibility, decision-making system, organizational learning, organizational culture, staff training, reward and incentive system and managerial support system for innovative ideas were studied. Finally, the data were analyzed by using the SPSS version 18. Data analyzing was performed by one-way ANOVA and χ² tests. Results: Among the 10 dimensions studies in this study, innovation (with mean score 11.47 ± 2.56) and decision making system (with mean score 11.47 ± 2.65 score) had the highest rank. The dimension of managerial support system for innovative ideas and organizational culture had the lowest ranks, respectively. Overall status of organizational entrepreneurship was desirable (with mean score 104.9 ± 24.4). In addition, the results showed that there was not a significant relationship between organizational entrepreneurship status and demographic and job characteristics of the managers, except educational level (P > 0.05). Conclusions: The status of the organizational entrepreneurship was assessed in view of managers in Ahvaz University of Medical Sciences. The overall evaluation resulted in a desirable scores; however, some dimensions of organizational entrepreneurship such as innovation and decision-making system had better status than other parameters. Keywords: Entrepreneurship; Academic Medical Centers; Administrative

Management Innovation Companies Based Business Cost Indicators

Abstract: The article highlights the features of management innovation companies based business cost indicators. The estimation of the value of business cost indicators constituting the three approaches, namely, market, cost and income. The necessity to use the highly-qualified labour resources, the last scientific inventions and researches, as well as the newest innovation technologies is emphasized. The innovation model of development should be used at the enterprise for this purpose. For the effective management of innovation companies it is necessary to control the situation on the market and execute management on the basis of indicators of the business cost. The management of the innovation companies on the basis of the business cost includes: management of the organizational capital, management of the intellectual capital, and management of information capital. As a result, the innovation company receives the wide client base, competitive prices, the high level of service, the high quality of the offered innovation services, the availability of the own innovation developments and highly-skilled staff.

Organizational Ambidexterity and Firm Performance: The Moderating Role of Organizational Capital

Abstract: The aim of this paper is to examine the link between organizational ambidexterity (i.e. exploring new knowledge and exploiting existing knowledge simultaneously) and firm performance (i.e. revenue ...

Uncovering recruitment as a strategic lever for various forms of organizational capital

Abstract: Whereas the structuring and growth of the firm have long been central to conceptual development in strategy research, the literature has largely ignored how a fundamental practice such as recruitment can be of strategic importance for the sustenance of the firm’s growth. The present study introduces recruitment as a strategic practice and elaborates on how this practice is crucial in creating and editing social and economic capital of the firm and how this interplays with its growth. It suggests three entrenchments – vertical, horizontal, and lateral – for striking a balance between the firm’s explorative (diversification) and exploitative (specialization) activities for creating and modifying its competence base through strategic recruitment.