How to assess the intellectual capital of firms in uncertain times: a systematic literature review and a proposed model for practical adoption
| Date | 12 December 2023 |
| Pages | 1-22 |
| DOI | https://doi.org/10.1108/JIC-05-2023-0096 |
| Published date | 12 December 2023 |
| Subject Matter | Information & knowledge management,Knowledge management,HR & organizational behaviour,Organizational structure/dynamics,Accounting & finance,Accounting/accountancy,Behavioural accounting |
| Author | Marcello Cosa,Eugénia Pedro,Boris Urban |
How to assess the intellectual
capital of firms in uncertain times:
a systematic literature review
and a proposed model
for practical adoption
Marcello Cosa
Department of Economic and Social Sciences (DiSES),
Universit
a Cattolica del Sacro Cuore –Campus di Piacenza e Cremona, Piacenza, Italy
Eug
enia Pedro
NECE –Research Center in Business Sciences, Universidade da Beira Interior,
Covilha, Portugal, and
Boris Urban
University of the Witwatersrand, Johannesburg, South Africa
Abstract
Purpose –Intellectual capital (IC) plays a crucial role in today’s volatile business landscape, yet its
measurement remains complex. To better navigate these challenges, the authors propose the Integrated
Intellectual Capital Measurement (IICM) model, an innovative, robust and comprehensive framework designed
to capture IC amid business uncertainty. This study focuses on IC measurement models, typically reliant on
secondary data, thus distinguishing it from conventional IC studies.
Design/methodology/approach –The authors conducted a systematic literature review (SLR) and
bibliometric analysis across Web of Science, Scopus and EBSCO Business Source Ultimate in February 2023.
This yielded 2,709 IC measurement studies, from which the authors selected 27 quantitative papers published
from 1985 to 2023.
Findings –The analysis revealed no single, universally accepted approach for measuring IC, with company
attributes such as size, industry and location significantly influencing IC measurement methods. A key finding
is human capital’s critical yet underrepresented role in firm competitiveness, which the IICM model aims to
elevate.
Originality/value –This is the first SLRfocused on IC measurement amid business uncertainty, providing
insights for better management and navigating turbulence. The authors envisage future research exploring
the interplay between IC components, technology, innovation and network-building strategies for business
resilience. Additionally, there is a need to understand better the IC’s impact on specific industries
(automotive, transportation and hospitality), Social Development Goals and digital transformation
performance.
Keywords Performance, Measurement, Intellectual capital, Intangible assets, Business uncertainty,
Turbulent environments, Systematic review
Paper type Research paper
Measuring IC
of firms in
uncertain times
1
© Marcello Cosa, Eug
enia Pedro and Boris Urban. Published by Emerald Publishing Limited. This
article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may
reproduce, distribute, translate and create derivative works of this article (for both commercial and non-
commercial purposes), subject to full attribution to the original publication and authors. The full terms of
this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
Eug
enia Pedro acknowledges NECE-UBI, Research Center for Business Sciences, Research Center
and this work is funded by FCT –Fundaç~
ao para a Ci^
encia e a Tecnologia, IP, project UIDB/04630/2020.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1469-1930.htm
Received 4 May 2023
Revised 24 July 2023
19 October 2023
Accepted 22 November 2023
Journal of Intellectual Capital
Vol. 25 No. 7, 2024
pp. 1-22
Emerald Publishing Limited
1469-1930
DOI 10.1108/JIC-05-2023-0096
Introduction
Intellectual capital (IC) has enjoyed considerable attention in research and practice for over
3 decades. The current economy, which is highly competitive and digitized, has shifted
attention towards intangible assets as companies strive to outdo each other in terms of
innovation. Over the past 25 years, the investment share of intangibles has increased by 29%
in the United States and ten European economies (Hazan et al., 2021). In 2018, IC made up 84%
of all enterprise value on the S&P 500 (one of the most important US stock market indexes).
This is a massive increase from 68% in 1995 (Aon-Ponemon, 2020).
This paper focuses on IC measurement tools and models, which inherently differ from
traditional IC studies due to the constraints and opportunities of utilizing secondary data,
such as financial reports.
IC evaluation permits firms to comprehend intangible assets’value better, making more
informed strategic decisions (Bontis, 1998;Edvinsson and Malone, 1997). Furthermore, it
allows companies to identify and exploit their knowledge assets to bolster performance,
spark innovation and enhance collaboration (Sveiby, 2001;Roos et al., 2007). This makes the
company more appealing to investors interested in the company’s intellectual property and
knowledge resources (Steward, 1997).
While there is no universally agreed-upon definition of IC, literature widely acknowledges
that IC comprises various components (Kianto et al., 2017;Asiaei et al., 2018;Pedro et al., 2018).
Here, by IC, we refer to the combination of three elements: human, structural and relational
capital (Edvinsson and Malone, 1997;Roos et al., 1997). Human capital refers to the collective
knowledge, skills and innovative potential embedded within an organization’s personnel
(Bontis, 1998;Youndt et al., 2004). Structural capital encompasses the organization’s systems,
procedures and intellectual property, independent of its human components (Edvinsson and
Malone, 1997;Roos et al., 2007). Finally, relational capital refers to the valuable relationships
and networks an organization has built with external entities such as clients, suppliers and
stakeholders. These often become crucial during unpredictable market conditions (Sveiby,
1997;Nahapiet and Ghoshal, 1998).
Having detailed the components of IC—human, structural and relational—it becomes
crucial to place these elements in the context of the dynamic and unpredictable business
landscape where they operate. As explored in this study, business uncertainty pertains to the
lack of clarity or predictability about future market conditions, economic trends or other
factors that may impact a company’s operations or profitability (Bennett and Lemoine, 2014).
Previous research has suggested identifying IC measurement models better to navigate
political, technological, economic and environmental changes. For example, Ashton (2005)
reported that conventional financial measurement and reporting systems have failed to keep
up with the external business environment transformations and how companies have reacted
to those changes. Since entrepreneurs face numerous challenges in turbulent and torn
environments, measuring and leveraging IC has become vital to developing business
resilience, thriving and surviving (Daou et al., 2019).
Several studies have focused on the multiple facets of IC in the past decade. For example,
Jalonen’s(2012) systematicreview found thatuncertainty is a pervasiveand inevitableaspect of
the innovation process,affectingvarious stagesfrom idea generationto commercialization.This
study gives a valuable perspective on the relationship between IC and innovation in firms.
However, theauthor did not look at methodologies for appraisalIC. Other more recent studies
(Ali et al., 2021;Lin and Edvinsson, 2021;Paoloni et al., 2023) provided a comprehensive
overview of IC topics and suggested several potential gaps in IC research. Still, they did not
examine current uncertain business circumstances.
Although previous studies have provided valuable insights into the relationship between
IC and innovation and have identified potential gaps in IC research, they have not explicitly
addressed or developed methodologies for assessing IC in the face of unpredictable events
JIC
25,7
2
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