Implementing the KPMG Value Explorer. Critical success factors for applying IC measurement tools
| Pages | 474-488 |
| Published date | 01 December 2005 |
| DOI | https://doi.org/10.1108/14691930510628771 |
| Date | 01 December 2005 |
| Author | Daniel Andriesson |
| Subject Matter | Accounting & finance,HR & organizational behaviour,Information & knowledge management |
Implementing the KPMG Value
Explorer
Critical success factors for applying IC
measurement tools
Daniel Andriesson
INHOLLAND University of Professional Education, Diemen, The Netherlands
Abstract
Purpose – The purpose of this paper is to describe the results of an empirical study into the critical
success factors for implementing an intellectual capital valuation method, the KPMG Value Explorer.
Design/methodology/approach – For this study the design approach was used as research
methodology.
Findings – The research shows the strengths and weaknesses of the method and identifies four
general critical success factors for the implementation of intellectual capital valuation and
measurement tools.
Research limitations/implications – The research was based on six case studies. Application of
the method with other companies may provide further grounding of the conclusions.
Practical implications – The research shows that practitioners who want to implement an
intellectual capital valuation or measurement method must: perform a proper diagnosis of the problem
at hand; have knowledge of the strengths and weaknesses of the method they want to use; understand
the application domain of the method – the class of problems and the class of contexts for which the
method needs to provide a solution; and possess the necessary skills to implement the method.
Originality/value – Successfully implementing a method for the valuation or measurement of
intellectual capital is not an easy task. Practitioners yet receive little support from the intellectual
capital research community. Little research has been done into the factors that influence the success of
a method. This paper is a first attempt at systematically identifying some of the factors for the
successful implementation of an intellectual capital valuation or measurement method.
Keywords Intellectualcapital, Research methods, Measurement, Critical successfactors
Paper type Research paper
Introduction
Over the last ten years many methods have been proposed for the measurement or
valuation of intellectual capital (IC). (For overviews see: Bontis, 2001; Bon tis et al., 1999;
Luthy, 1998; Petty and Guthrie, 2000; Sveiby, 2002 and Andriessen, 2004a ). Little
empirical research has been done on how these types of methods are being
implemented and what the critical success factors are for successful implementation.
As a result there is an abundance of information on how to measure or value IC, but
there is little knowledge how to successfully apply these methods in practice.
Implementing a new measurement method is an intervention into the daily operation of
a company. How successful are these interventions? What are their effects?
Implementation of these methods requires certain skills and conditions. What are som e
of those skills and conditions? What are some of the mistake to avoid? What are critical
success factors?
The Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available at
www.emeraldinsight.com/researchregister www.emeraldinsight.com/1469-1930.htm
JIC
6,4
474
Journal of Intellectual Capital
Vol. 6 No. 4, 2005
pp. 474-488
qEmerald Group Publishing Limited
1469-1930
DOI 10.1108/14691930510628771
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