Value creation and sustainability in knowledge-based strategies
| Published date | 11 July 2016 |
| Pages | 457-470 |
| Date | 11 July 2016 |
| DOI | https://doi.org/10.1108/JIC-09-2015-0082 |
| Author | Gianpaolo Iazzolino,Domenico Laise |
| Subject Matter | Information & knowledge management,Knowledge management |
Value creation and sustainability
in knowledge-based strategies
Gianpaolo Iazzolino
Department of Mechanical, Energy and Management Engineering (DIMEG),
University of Calabria, Rende, Italy, and
Domenico Laise
Department of Computer, Control and Management Engineering,
University of Rome “La Sapienza”, Rome, Italy
Abstract
Purpose –The purpose of this paper is to place the value creation process within sustainable growth
strategies. Building on Drucker (1968, 1999a, b), Pulic (2000, 2004, 2008) and other papers by the same
authors (Iazzolino and Laise, 2013) the specific aim of this research is to propose an accounting-based
framework able to: distinguish between knowledge-intensive firms (KIFs) and nonknowledge intensive
firms (nonKIFs); and investigate the contribution of the two sets of firms (KIFs and nonKIFs) to overall
sustainability, from a social point of view, of the economic system.
Design/methodology/approach –The paper uses the no tion of value added ( VA) (Pulic, 2000,
2004, 2008) as the mai n indicator to measur e the value creation in a knowl edge economy contex t.
Asregardthefirstpointoftheframework,theapproachisbased ontheanalysisofVAandits
components, starting from a reinterpretation of the concept of value added intellectual
coefficient made b y the same authors of thi s paper. An empirical a nalysis based on the
composition of VA in te n Italian industri es, by using an overa ll sample of 1,000 fir ms, has been
carried out and is described in the paper. As regards the second point, the paper analyses, from
a theoretical point of view, the necessary conditions to set up a sustainable value creation strategy
in social terms, using the conceptual categories introduced by Drucker (1968, 1999a, b) and Pulic
(2000, 2004, 2008) .
Findings –From results of the empirical analysis it emerges that: first, in traditional industries the
weight of the cost of employees on VA (human capital investments) is less than the other sectors
(low human capital intensity). In these sectors the value creation strategy is mainly based on “dead
knowledge,”embedded in machines (physical capital); and second, in nontraditional industries
(consulting, advertising, research, etc.) the economic value creation is mainly based on “living
knowledge,”embedded in human resources (high human capital intensity). In these sectors we have
lower productivity of work (VA/human capital) and higher employment.
Practical implications –The framework proposed makes it possible to reduce the risk of myopic
valuation of economic performance. Through this methodology it is possible to highlight the effects of
sustainable strategies based on knowledge investments oriented toward the stakeholder value theory
and corporate social responsibility. The approach can be very useful for top managers and for
accountants, as it underlines the importance of the VA income statement and constructs a strong link
to the themes of knowledge management.
Originality/value –The originality and the value of this methodological proposal can be appreciated
by taking into account that in the literature there is no accounting-based methodology that is able
to identify: the knowledge-intensive firms; and the firms that can contribute to overall social
sustainability, within the set of all firms.
Keywords Performance measurement, VAIC, Intellectual capital, Corporate social responsibility,
Sustainable value creation
Paper type Research paper
Journal of Intellectual Capital
Vol. 17 No. 3, 2016
pp. 457-470
©Emerald Group Publis hing Limited
1469-1930
DOI 10.1108/JIC-09-2015-0082
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1469-1930.htm
The authors would like to thank two referees for their precious suggestions that contributed
to significantly enhancing the paper.
457
Value creation
and
sustainability
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