Showing papers on "Organizational capital published in 2019"

Intellectual capital and business performance: the role of dimensions of absorptive capacity

Abstract: The purpose of this paper is to empirically examine the mediating role of potential and realized absorptive capacity in intellectual capital (IC) and business performance. It also investigates the direct impact of the components of IC on business performance.,Partial least square-structural equation modeling (PLS-SEM) was used to assess the effect of IC dimensions on performance and to analyze the mediating role of absorptive capacity in this relationship. Data were collected from 192 managers using a survey questionnaire with Likert scale items.,The findings of the study show that potential absorptive capacity does not intervene in the relationship between the components of IC and those of business performance. However, realized absorptive capacity, measured as the transformation and exploitation of knowledge, played a positive mediating role in the relationship between the dimensions of IC and those of business performance. Social capital was also noted as a weak predictor of business performance, while human capital and organizational capital had a profound positive influence.,This study contributes to the literature on IC by examining the role of realized and potential absorptive capacity in the relationship between IC components and firm performance. This research also helps practitioners recognize the importance of transformation and the exploitation of knowledge for business performance.

The effect of enterprise social networks use on exploitative and exploratory innovations: Mediating effect of sub-dimensions of intellectual capital

Abstract: The purpose of this paper is to investigate the links between the enterprise social networks (ESN) use and the exploitative and exploratory innovations and deepen the analysis by examining the mediating role of the sub-dimensions of intellectual capital (IC) in these relationships.,The authors use a quantitative method based on the questionnaire administrated to a sample of 248 middle managers working in Tunisian ICT firms. Regarding the data analysis, the authors use a partial least square-structural equation modeling (PLS-SEM) method.,Results highlight that whereas exploratory innovation is positively linked to human capital (HC) and social capital (SC), exploitative innovation is positively associated with HC. Findings show that the ESN use is linked positively to exploitative innovation and this link is mediated by HC. The data analysis also revealed that HC and SC mediate the link between ESN use and exploratory innovation.,Although limited studies have investigated the effect of the ESN use on firms, this research pioneers the examination of the effect of the ESN use on exploitative and exploratory innovations within ICT firms and the mediating roles of HC, SC and organizational capital that have never been explored. Findings are highlighted along with interesting insights for managers and outline the key aspects related to the ESN use that may improve the sub-dimensions of IC and boost exploitative and exploratory innovations.

Intellectual capital and technological dynamic capability: evidence from Chinese enterprises

Abstract: As the carrier of knowledge, intellectual capital plays a crucial role in technology capability. However, most of the previous studies focus on technological capability from a static perspective, rather than take dynamic technology capability into consideration. Based on this research gap, the purpose of this paper is to investigate the effects of intellectual capital and its sub-dimensions on dynamic technology capability, measuring by the factor scores of five technological input and output variables.,The authors combine the system dynamic method and empirical study to guarantee the internal and external validity. Specifically, the authors design the system dynamic model and simulation to analyze the system mechanism of intellectual capital and its sub-dimensions on dynamic technology capabilities from four cause and effect feedback loops. Then, the authors propose eight hypotheses based on this system dynamic model. In the empirical test phase, the authors employed a panel data set pertaining to Chinese manufacturing firms from 2007 to 2017, and adopted the fixed effect panel model according to Hausman test.,The authors find that intellectual capital efficiency (ICE) and its sub-dimensions (i.e. human capital efficiency, organizational capital efficiency and capital employed efficiency (CEE) have significantly positive impacts on dynamic technology capability. The results also show that the positive effects of ICE and OC on dynamic technology capability would be strengthened in state-owned enterprises compared with non-state-owned enterprises, while this moderation effect is weakened on the relationship between CEE and dynamic technology capability.,In this study, the authors first introduce the system dynamic method to explore the relationship of intellectual capital and dynamic technology capability, which is a valuable trial on combining system science and empirical study. Additionally, the authors continue to expand the dynamic technology capability from the intellectual capital perspective, and also find the moderating effect from the ownership aspect. It is beneficial to the theoretical development of intellectual capital and dynamic technology capability. Furthermore, the authors provide significant inspirations and implications for enterprise’s managers.

Partner Strategic Capabilities for Capturing Value from Sustainability-Focused Multi-Stakeholder Partnerships

Abstract: As social and ecological problems escalate, the role of collective capacity and knowledge is becoming more critical in reaching solutions. This capacity and knowledge are dispersed among diverse stakeholder organizations. Thus, organizations in the private, public and civil society sectors are experiencing pressure to address these complex challenges through collaborative action in the form of multi-stakeholder partnerships. One major challenge to securing and maintaining partner engagement in these voluntary collaborative initiatives is defining the value proposition for prospective and existing partner organizations. Understanding the relationship between different forms of partner involvement and the subsequent resources that partners stand to gain is necessary to articulate the value proposition of the partnership to partners. This study conducts a survey of partner organizations from 15 different sustainability-focused multi-stakeholder partnerships in Canada. We compare three partner strategies for implementation and value capture and discover that each strategy is associated with different partner-level resource outcomes. Our findings indicate that product stewardship strategies are associated with financial and organizational capital, marketing and promotion with human capital, and internal implementation structures with shared capital. This study has implications for multi-stakeholder partnership researchers and practitioners because it suggests the possibility that certain partner-level outcomes could rely on the partner, as well as partnership implementation strategies.

Conceptualizing academic intellectual capital: definition and proposal of a measurement scale

Abstract: The purpose of this paper is to describe the development and validation of an instrument for measuring intellectual capital in the academic research context. The current research context describes a new paradigm of scientific production characterized by interdisciplinarity, heterogeneity and the intensification of the relations between the generators of knowledge. In this scenario, traditional measures of intellectual capital do not capture all the variables that make up the environment in which the research activities are carried out. This transformation of research processes suggests the need to bring theories of organizational behavior, more appropriate to an organizational context, to the study of scientific context. Thus, the paper contextualizes the intellectual capital approach, thereby explaining how the different attributes that build it influence scientific productivity and providing a measurement instrument to evaluate relative levels of intellectual capital in an academic research context.,The scale was designed through a double qualitative–quantitative scale development process. The literature on intellectual capital does not provide strong theoretical support for the definition of a specific set of items to be applied in the specific academic research context. Consequently, the scale constructs and observable variables were initially conceptualized through a Delphi panel. This initial set of indicators was empirically validated through a second quantitative stage to a sample of 1,798 Spanish academics. Given that no prior published studies have examined the construct validity of the proposed scale, and the proposed scale is not based on other previously validated scales, the authors used exploratory and confirmatory factor analysis to assess the internal consistency, using Cronbach’s α to determine reliability.,Drawing on the evidence obtained from a double qualitative–quantitative process, a scale consisting of 47 items was proposed to measure the three dimensions of intellectual capital, namely, the researcher’s human capital, as well as the nature of the social capital and organizational capital of the team in which the scholar is integrated. The process of identifying and validating indicators of intellectual capital allowed the authors to identify certain intangible elements that are key in the research process and that, therefore, determine scientific productivity. Thus, the proposed scale contributes by conceptualizing new variables that could be used to deepen and broaden the study of the determinants of research performance. The contextualization of intellectual capital approach can also help to assess the value of intangibles, offering an external reporting tool and making universities’ social contributions more visible to public and private stakeholders, justifying the efforts made by societies in the generation of academic knowledge.,The empirical analysis was carried out with an initial sample of 1,798 Spanish scholars. The validation of the scale should therefore be confirmed in different national contexts, with larger data sets. Likewise, the use of longitudinal data sets could help to study the effects of intellectual capital in academic research, thereby contributing to the ongoing debate on the determinants of research performance.,From a practical perspective, the instrument could be considered both as a management and an external reporting tool, providing a self-assessment instrument of the levels of intellectual capital. As a management tool, a specific measure of intellectual capital in an academic context could help to identify training needs, the implementation of practices that encourage the capability for building research networks and the development of reports with intellectual capital-related inputs for the justification of the resources received. At an institutional level, the proposed set of indicators also identifies the attributes of scholars linked to higher scientific performance, and the scale could be used as an instrument for selection processes in academic institutions, to develop practices related to the distribution of workload or the publication of intellectual capital indicators of its researchers in a healthy exercise of transparency.

Does integrated reporting enhance the value relevance of organizational capital? Evidence from the South African context

Abstract: Despite the growing literature on integrated reporting (IR) adoption and the emphasis on integrated thinking capitals, prior research works only focused on the financial and non-financial reporting rather than the cornerstones of IR. In order to fill this gap, the purpose of this paper is to investigate the value relevance of organizational capital (OC) after the mandatory adoption of IR in South Africa over the period 2006–2015.,The authors have used quantitative methods to test the hypotheses. The South African context is unique since the Johannesburg Stock Exchange is the first to mandate listed firms to adopt IR following King III report in March 2010.,The findings provide the first evidence, to the best of the authors’ knowledge, on the positive and significant impact of IR adoption on the value relevance of OC.,The authors contribute to IR literature by providing new insight on the value relevance of one capital from a new perspective addressing the importance of resources as inputs to the business model highlighted by integrated thinking in the IR framework. The findings derive various implications for the International Integrated Reporting Council, managers, decision makers and the research community.

Pathways to the power elite: The organizational landscape of elite careers:

Abstract: To capture elites, we must map out the organizational landscape through which they pass during their careers. This organizational landscape moulds the character of elites, tells us about the presti...

Relationship between Investments in Intellectual Capital and Company's Book Value : evidence from French Companies (2008-2016)

Abstract: Objective: Intellectual capital is a strategic resource that plays an important role in the value creation process. Taking into account that the twentieth century is a century of ideas, knowledge, innovations, information and changes, intellectual capital has been an interesting topic over the past few decades. At the same time, the financial market has become influential in the global market, so intellectual capital found a very important role for itself. Most of the research is aimed at identifying the relation between intellectual capital and short-term financial performance, such as profits, market shares, turnovers, or market value. This research aims to fill the gap in the literature that relates to the total book value as a final performance. By improving the total book value of a company and creating new assets through the capitalization of investments in intellectual capital components, a company generates benefits on a long-term basis. Methodology: We included 498 and 475 French companies in a complex correlation statistical analysis in two main research models respectively. The financial information was obtained from the financial database “Point Risk” for the purpose of addressing the main research question. The model used in the study is the Intellectual Capital Transformation Evaluating Model (ICTEM) developed by Molodchik et al. (2012). This model investigates the process of intellectual capital transformation in the performance of a company.Findings: Companies transform and capitalize their investments in intellectual capital components into concrete assets in the total book value. The three main intellectual capital components that companies invest in are: human capital, organizational capital and relational capital. Implications and limitations: The main contribution of our research is the identification of the link between investments in intellectual capital components and a company’s total book value as final performance. Until now, the total book value as company final performance has not been used in correlation with intellectual capital and its investments. There are limitations of the study. One of them is to find adequate financial information about companies that will be used in an analysis and another one is financial information, such as marketing expenses and R&D expenses, which is not always available in the accounts of a company. Original feature: This study presents the first verification of a positive relationship between investments in intellectual capital components and a company’s total book value.

Organizational Capital, Corporate Leadership, and Firm Dynamics

Abstract: We argue that economists have studied the role of management from three perspectives: contingency theory (CT), an organization-centric empirical approach (OC), and a leader-centric empirical approach (LC). To reconcile these three perspectives, we augment a standard dynamic firm model with organizational capital, an intangible, slow-moving, productive asset that can only be produced with the direct input of the firm's leadership and that is subject to an agency problem. We characterize the steady state of an economy with imperfect governance, and show that it rationalizes key findings of CT, OC, and LC, as well as generating a number of new predictions on performance, management practices, CEO behavior, CEO compensation, and governance.

Technological and organizational capital: Where complementarities exist

Abstract: This study analyzes the complementarities between technological and organizational capital within enterprises. Different components of technological and organizational capital exert distinct—and often opposed—forces on each other. Our empirical results show that greater employee voice promotes firm productivity when combined with information technology, but harms firm productivity when combined with communication technology. On the other hand, flexible work design is positively associated with communication technology and negatively associated with information technology.

IT, AI and the Growth of Intangible Capital

Abstract: General purpose technologies like IT and AI typically require complementary investments in firm-specific human and organizational capital to create value for firms. However, good measures of the stock of this IT intangible capital (ITIC) have remained elusive, as has an understanding of how the accumulation of ITIC contributes to economic growth. We use a new extended firm-level panel on IT skills along with Hall’s Quantity Revelation Theorem to assess the nature and growth of ITIC over the last thirty years. We then examine implications for the current wave of AI investment. Our estimates suggest that ITIC accounted for about 25% of firms’ total assets by 2016 and that this capital is disproportionately owned by small subset of “superstar” firms. During most of the period we examine, these assets depreciated close to the same rate as R&D, but depreciation rates appear to have been accelerating with the diffusion of AI-based innovations. For the recent wave, high market values are associated with AI before they are associated with increased revenues or productivity, suggesting that investors anticipate significant future returns to AI-related intangible assets that are otherwise unmeasured.

The effect of high involvement work systems on organizational performance: The mediating role of knowledge-based capital

Abstract: Article history: Received: April 15, 2019 Received in revised format: April 28 2019 Accepted: May 14, 2019 Available online: May 17, 2019 This study investigate the effects of high involvement human resources on organizational performance. The study is accomplished through hypothesizing the effect of high involvement work systems on performance as the main relationship. This effect is theorized to be mediated through knowledge-based capital. Additionally, leadership style is considered as the potential moderating force in the theorized model. Data is analyzed from 380 collected questionnaires distributed among hotel employees in Jordan using structural equation modelling techniques. The results show that high involvement work systems had a positive effect on performance, social and human capital. Human and social capital mediating role is also observed. Finally, leadership style is emerged as a moderating variable affecting the relationship between high involvement work systems and performance. The findings of this study show the importance of the role played by human and knowledgebased capital in achieving human resources performance goals. © 2019 by the authors; licensee Growing Science, Canada

Scale Development and Construct Validity of Organizational Capital in Customer Relationship Management Context: A Confirmatory Factor Analysis Approach:

Abstract: Effective usage and implementation of customer relationship management (CRM) or information technology requires some prerequisite organizational commitments and changes. Improving and deplo...

Green Intellectual Capital and Firm Competitive Advantage: Evidence from Malaysian Manufacturing Firms

Abstract: The purpose of this study is to investigate the relationship between green intellectual capital and firms’ competitive advantage in Malaysia. More specifically this study examines the impact of four dimensions of green intellectual capital; green human capital, green innovation capital, green organisational capital and green relational capital on firms’ competitive advantage. Using survey as a method to collect data from 224 managers of manufacturing firms in Malaysia, the result shows that green intellectual capital and its dimensions, specifically the green innovation capital, green organizational capital and green relational capital have significant and positive relationship with firms’ competitive advantage. Overall, the findings highlight the importance of green intellectual capital as a valuable business resource which in turn enhances firm performance and competitiveness.

Intellectual capital management among Italian non-profit socio-cooperatives

Abstract: The purpose of this paper is to deepen the knowledge on the role played by the intellectual capital (IC) of small and medium non-profit socio-cooperatives (SMSCs) in generating knowledge and organisational growth, as well as on the challenges and the difficulties of the management of IC among these organisations.,This exploratory study adopted a qualitative methodology. A total of 70 semi-structured interviews were conducted with senior managers of Italian non-profit SMSCs, asking them to talk about the management of their human capital, organisational capital and relational capital. The data gathered from the interviews were analysed through discourse analysis carried out by two independent judges.,IC management among Italian non-profit SMSCs is unplanned, unsystematic and short-termed. The SMSCs in question adopt an employee-centred approach; their IC management and knowledge creation are more focused on the direct contribution of the organisational members, than on the endorsement of formal or structured procedures and processes. Owing to their social aim, the well-being of both the workers and the beneficiaries of the SMSCs plays a central role in the IC management. Relationships with external stakeholders are regarded as important as those with the internal ones, re-affirming the organisations’ members as the core of the knowledge generation.,The group reached is not a statistically representative sample; furthermore, it is limited to Italy.,Deepening the knowledge on IC among these organisations can help to promote the strengths and address the weaknesses of its management, whilst also helping these micro-enterprises to develop into SMEs.,This paper contributes to the IC literature by shedding light on the role played by IC among small and medium enterprise (SMEs), and more specifically in the specific context of Italian SMSCs. To the authors’ knowledge, no previous research has thus far dealt with this issue. Deepening the knowledge on IC among these organisations can help to promote the strengths and address the weaknesses of its management, while also helping these micro-enterprises to develop into SMEs.

La influencia del capital intelectual en el desempeño de las pequeñas y medianas empresas manufactureras de México: el caso de Baja California

Abstract: Organizations successful performance is driven by several factors, among them intellectual capital, which has gained special significance considering that intangible goods could generate more value than tangible assets. Related literature reports that the increase of small and medium-sized enterprises value lies, to a large extent, on maintaining a prosperous and constantly evolving intellectual capital. The aim of this paper is to establish the influence of intellectual capital on the performance of small and medium companies in the manufacturing sector of Baja California region, Mexico. For this purpose, we designed a questionnaire that was later applied to 149 companies. Results were subject of a statistical treatment based on exploratory factor analysis followed by confirmatory factor analysis. In addition, the use of linear regressions made possible to prove the hypotheses of this research. Our findings show there is a strong influence of intellectual capital on the performance of organizations. Likewise, it was specifically shown that organizational capital has the greatest influence regarding social capital and client's equity. In contrast, technological and human capital did not show any association with organizations performance. These results make possible for organizations to identify areas of opportunity as well as to implement strategies for revaluating their intangible assets and, with this, generating greater business value.

The Rise of Star Firms : Intangible Capital and Competition

Abstract: There is a divergence in the returns of top-performing firms and the rest of the economy, especially in industries that rely on a skilled labor force, raising concerns about their market power. This paper shows that the divergence is explained by the mismeasurement of intangible capital. Compared with other firms, star firms produce more per dollar of invested capital, have higher growth, innovation, and productivity and are not differentially affected by exogenous competitive shocks. Their pricing power supports their high intangible capital investment. Some exceptional firms may pose concerns due to their potential to foreclose competition in the future.

Human Capital and Intellectual Capital in Modern International Business – Based on Studies of the Strategies of Transnational Corporations

Abstract: The main objective of the article is to discuss the direction of changes in the strategies of the most powerful transnational corporations as a result of adjustments to the new challenges created by the growing role of human capital in contemporary international business. Based on the concept of Grounded Theory Methodology, the author will indicate the main pillars of the strategy which can be considered effective for new challenges. The study has been divided into three parts. The first part discusses the most important theoretical issues concerning the place of human capital in the strategies of contemporary enterprises. In the second part, the author characterizes new trends in international transfers of human capital. In the next part, based on the research, the author discusses the impact of changes on the organizational and management system of enterprises – on the example of the most powerful transnational corporations. The studies have shown that all the most powerful transnational corporations notice the growing role of intellectual capital in contemporary business. The basis of corporations’ strategies is the emphasis put on the development of subsystems of intellectual capital, which refers to the activation of international transfers of human capital. In consequence, the strategies of the development of the most powerful transnational corporations are based on three pillars: networking, orchestration, and coopetition, and they are based on the three subsystems of intellectual capital: organizational capital, innovations, and the institutional environment.

CEO Extraversion and the Cost of Equity Capital

Abstract: We examine whether CEO extraversion, an important personality trait associated with leadership, affects firms’ expected cost of equity capital. We measure CEO extraversion using CEOs’ speech patterns during the unscripted portion of conference calls. After controlling for multiple CEO and firm specific variables, we find a strong positive incremental association between CEO extraversion and firms’ expected cost of capital. Moreover, the cost of equity increases when a more extraverted CEO replaces a less extraverted CEO. In addition, we find that firms with relatively extraverted CEOs take more risk and exhibit lower credit ratings, which is associated with a higher cost of equity capital. These results are statistically and economically meaningful and do not appear to be driven by reverse causality or endogenous matching.

The enterprise’ IC management under the Digitalization

Abstract: Advancing by means of Digitalization the Forth Industrial revolution stipulates the new opportunities for business and societies related to the usage of the enterprise’ Intellectual capital. Possessing the similar nature as the trends mentioned the very resource results to become a basic one it to provide a qualitative transformation of the mode of performance of the enterprises. The analysis of such tendencies, their interpretations in the specialized papers and the determination of the prospective directions of their further investigation relevant for both practitioners and scholars constitute an object of the present article. The analysis realized operated with various research methods of general type (analysis, synthesis, etc.) and the specific ones (content analysis, comparativistic tools and others). Their application proved the relevance of the integral approach towards the enterprise’ Intellectual capital under Digitalization to determine correctly its impact over the organizational performance in a whole. The authors revealed the insufficiency to limit the investigation with the exposure of main layers of the recourse formed these before the digitalization trend as well as its new element due to the trend mentioned and constituted in terms of Network capital only. Nowadays the more and more attractive to scholars’ research topicality considers poorly the effects of relationship mechanisms between various layers and elements of intellectual capital to impede the identification of the causal relationship while their interaction and its overall total with the intellectual capital contribution to the business and society development. Such an analysis constitutes a perspective direction for the further research of the subject.

Management Consultancy for Innovation

Abstract: This book provides a new perspective on innovation in consultancy firms. Focusing on how consultancy firms can innovate in the modern era, it exposes and discusses key drivers for innovation in the industry. These are broken down into 5 dimensions - or ‘Poles’ - relating to forms of capital (human capital, social capital, and three types of organizational capital) that consultancy firms can use in order to innovate, both for themselves and for their clients. Readers of this book will not only gain insight into the "innovative consultancy" from the perspective of each of these Poles. They will also discover how consultancy firms need to find the right way of connecting these Poles together in order to produce the desired innovation. Readers will learn about the dangers of misaligning the Poles, as well as implications of innovative consultancy for ethics, academic research in the field of consultancy, and for careers. In addition to the academic literature, the book draws from real-world examples, cases and practice insights from various parts of the world. This book will be of great use to those interested in pursuing a career in the consultancy industry, whether they are undergraduate and postgraduate Business & Management students, students not necessarily studying in Business Schools, or others seeking a career move into consultancy. It will also be valuable to seasoned consultants and managers of consultancy firms seeking new ideas on how to develop innovative capabilities in an increasingly competitive industry.

Disclosure of Intellectual Capital by Digital Companies

Abstract: The main purpose of the article is to define the essence of intellectual capital as a multi-component factor, analyze the structure and methods of intellectual capital evaluation and assess the feasibility of disclosure of information on it to external users. On the basis of the concept of information and communication technologies application, a segment of digital economy enterprises is selected. 10 Top companies which have had the maximum market capitalization by the beginning of 2019 are presented. Seven out of the ten companies are digital companies which have appeared thanks to digital technologies. With the use of these companies as an example, availability of assets not disclosed in their financial statements, which have great impact on company’s cost is shown. These assets make the intellectual capital. Development evolution of the “intellectual capital” definition essence starting from the mid-1990s is given in the article, when the boom of Internet companies was observed, till the present time, when scientific interest to this definition has occurred once again due to active transition of all the countries’ economies to digital ones. Intellectual capital is an integral factor consisting of many heterogeneous components. The minimum quantity of components of intellectual capital is reflected in the Statement on Financial Position of the company as intangible assets. The largest part of intellectual capital is defined as hidden assets. They are not accessible for an investor, hard to identify and assess. However, they are the ones that make a substantial contribution to the company's cost. Existing by the present moment approaches to structuring intellectual capital is analyzed in the article, and an overview of the methods of intellectual capital evaluation is presented. Preference is given to non-financial methods whose application allows receiving more reliable estimate of the intellectual capital cost. With substantiation of the necessity of development of recommendations on disclosure of information on intellectual capital, attention is drawn to availability of interconnection between intellectual capital and corporate

Global Value Chains and Productivity Growth: Does Intangible Capital Matter?

Abstract: This article investigates the impact of participation in global value chains (GVCs) on productivity growth considering the mediating effect of investment in intangible assets. We explore the existence of synergies between intangible capital accumulation and GVC participation and their influence on productivity in a sample of nine European economies in 1998-2013. The analysis relates the macroeconomic literature on the impact of intangibles and GVCs on productivity growth to microeconomic studies about the functions of intangibles along the value chain. The existence of complementarities between intangibles and GVC participation and their productivity effects are tested in an augmented production function framework. We find: a) positive and statistically significant productivity impact of backward participation; b) the marginal effect of GVC participation on growth is greater in countries-industries with higher intensity of intangible capital; c) non-R&D intangibles, and particularly organizational capital, exert a significant conditional effect on backward participation strengthening the productivity returns of global production activity.

Human Capital Management: Understanding Its Implications over the Business

Abstract: In the knowledge-based economy, human has emerged as the major intangible assets of the organizations and key determinant of sustainable competitive advantage. The human resource of an organization is now regarded as invaluable organizational capital, commonly known as human capital. Organizations are now more aware of the effective utilization of its human capital and ensure business success. However, despite the growing awareness of the importance of human capital, it could not get popularity as expected. From the initial investigation, it was revealed that there are several challenges in applying for the human capital management program. The challenges are a lack of precise definition of human capital and human capital management, overlapping scope and jurisdictions, identifying desired human capital and linking it with the business strategy, measuring the outcome of human intervention and reporting and so on. This literary paper would try to resolve these issues in the light of theoretical underpinnings. It is believed that this paper will be able to give HR managers and practitioners a meaningful guideline to apply for the human capital management program more confidently and effectively. In addition, this research would contribute to existing HR literature, too. An extensive literature search was the main source of information for this paper. For data validity and reliability data and information also collected from other sources, too such as, expert interviews, analyzing policy papers and personal observation, etc. To get an in-depth understanding of the research issues exploratory methodology has been applied in this study.

Acquisition Prices and the Measurement of Intangible Capital

Abstract: We use 1,521 acquisition purchase price allocations to estimate intangible capital stocks The estimated depreciation of knowledge capital (R&D) is 32%, some 28% of SG&A represents investment in organizational capital and parameter estimates exhibit significant industry variation Aggregating these accounts, 75% of intangibles come from organizational capital, and total stocks are 10% smaller versus stocks using prior parameters Adjusting for intangibles, average market-to-book falls from 174 to an average of one Relative to existing approaches, our stocks improve the explanatory power of enterprise value, human capital and brand rankings, while exhibiting the expected correlations with patent valuations and investment rates

Model of Intellectual Capital and Locus of Control on the Performance of Public Sector Internal Auditors Through Professional Commitment

Abstract: The development of a paradigm towards good governance requires government officials who are responsive to bureaucratic reform demands by changing ways of working and behavior characterized by a high level of performance, accountability, transparency, clean from corruption, collusion and nepotism. The purpose of this research is to develop the model of Intellectual Capital and Locus of Control to improve the performance of Public Sector Internal Auditors through professional commitment. The benefits of this research are expected to contribute and respond to various problems in the implementation of organizational governance in the field of supervision through strengthening performance-based internal auditors' behavior so that they are able to work objectively and independently in investigations for preventive prevention of practices fraud. The results of the study provide an overview of intellectual capital (human capital, organizational capital and consumer capital) and locus of control both internally and externally affect the strengthening of professional commitment (affective, continuous, normative) and have implications for the high performance of internal public sector auditors. The relationship is illustrated in the path diagram model of 30 Government Internal Supervisors in the district / city inspectorate in West Java Province.

Founding Teams and Startup Performance

Abstract: We explore the role of founding teams in accounting for the post-entry dynamics of startups. While the entrepreneurship literature has largely focused on business founders, we broaden this view by considering founding teams as both the founders and early joiners. We investigate the idea that the success of a startup may derive from the organizational capital that is created at firm formation and is inalienable from the founding team itself. To test this hypothesis, we exploit premature deaths to identify the causal impact of losing a founding team member on startup performance. We find that the exogenous separation of a founding team member due to premature death has a persistently large, negative, and statistically significant impact on post-entry size, survival, and productivity of startups. Consistent with our organizational capital hypothesis, effects are stronger for firms with small founding teams and those operating in business-to-business (B2B) oriented sectors. Moreover, while we find that the loss of a founder has an especially large adverse effect, the loss of an early joiner nonetheless exhibits a significant negative effect, lending support to our inclusive definition of founding teams. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.