This study investigates potential motivations for intellectual capital (IC) reporting in management reports of 428 German companies for the accounting year 2010. To infer motivations, agency theory and legitimacy theory are applied to test which theory better explains IC reporting. To approach methodological issues regarding how to measure IC value and IC reporting, the study is structured in three research projects. The first two research projects analyse methodological approaches, providing the basis for testing theories in project three. In the first project, a novel measure to estimate IC value is identified in the area of mergers and acquisitions research and innovatively applied to the area of IC research. This novel long-run value-to-book measure allows testing of previously untested IC-related hypotheses. The second research project supports a parsimonious design of a research framework for an IC content analysis and specifies which IC components are important to focus on. In the final project, the results show that legitimacy theory better explains IC reporting compared to agency theory. According to the findings, IC reporting is motivated to legitimise a company’s market position and to justify the use of intangible resources. The findings of this study contribute to the research areas of measuring IC value, analysing IC content, and applying theories to IC reporting.

M.A. / The competitive landscape in the retail sector in South Africa is changing, and new models of competitiveness are needed to deal with the challenges ahead. The responses that usually occur in relation to the above statement reveal a new competitive reality, demanding that the organisation’s capabilities will enable the retail company in South Africa to better serve their customers and to differentiate them from competitors. This dissertation is about determining the status of the measurement and interpretation of intangible assets within a retail company in South Africa, and more specifically the JD Group as a furniture retailer. There are focused on the importance of the different aspects of intellectual capital i.e. human capital, structural capital and customer capital and the value that could be derived to aid the company in the retail industry. It is also intended to establish whether value can be added to investors, customers, line management, employees and the community, if the appropriate intellectual capital management tool is identified and implemented. It is viewed, both globally and in South Africa, as a core contributory factor in achieving business strategy. It was established that knowledge processes and tools could be implemented and utilized to discover intellectual capital management as a valuable resource for the retail company. The spectrum of intellectual capital management tools is investigated and four methods of measuring intellectual capital are identified in the current literature: The Market capitalization method, the return on assets method, the direct intellectual capital method and the scorecard method. The scorecard models are identified as the most appropriate method to use in a retail company in South Africa based on the following characteristics: Monitoring of performance, reporting to stakeholders and uncovering of hidden value. The retail industry in South Africa is very volatile and organizations should be geared to adapt to changes at a rapid pace. In order to achieve world-class status, it is important to understand that management and employees, together, need to champion the competitive organisation of the future. The future organisation will no longer be in business just for the sake of business, but with a clear intent to protect its most valuable asset, the future. 21st Century businesses will be in the business of the creation of future, sustainable businesses. This dissertation explores the views as to the extent to which intangible assets contribute value, how this contribution can be measured through the use of intellectual capital management tools and what the status is of such measurement in the current retail company trading in South Africa. Once the need for intellectual capital management in the retail company in South Africa is established, focus is also given to the resultant changes required in respect of specific practices and the introduction of an array of strategy focused interventions, all within the intangible assets arena. The selection of these interventions is very JD Group specific and focuses on those areas that will contribute to the strategic alignment of leadership, culture and technology within the Group’s strategy, which is quite simply but also articulately captured in the Group’s vision statement, i.e. “To become global leaders in our fields of expertise.”

In a fast changing business environment with accelerated technological development, new knowledge resources and developing dynamic capabilities are becoming vital issues in economic knowledge. Drawing on the Resource-based View in small and medium-sized enterprises (SMEs) and competitive dynamics perspectives, there has been a recent rise in the number of practitioners and academics integrating the knowledge resources of SMEs, which are intellectual capital (IC) and absorptive capacity (ACAP) to achieve superior performance. The main objective of this study is to investigate the mediating role of absorptive capacity on the relationship between intellectual capital and firm performance in high-tech sector SMEs in the UK. Current research proposed a model for the direct and indirect relationships of IC- performance through ACAP, thereby increasing contributions to knowledge in the field of strategic management. A research conceptual framework was developed with reliance on an existing body of literature in the field of study. It integrates the effects of intellectual capital with absorptive capacity to create and develop dynamic capabilities in pharmaceutical, biotechnology, and the publishing of computer games firms. A quantitative research employing surveys, the selected method of study was justified, because of the number of SMEs and their being geographically widespread around the UK. A five-point Likert-type scale has been used to measure research variables. A research conceptual framework has been developed and tested by using a structural equational modelling methodology. The results of this study suggested that high-tech SMEs could enhance and improve their financial outcome, if they associate and integrate the firm’s intellectual capital with the firm’s absorptive capacity to create or develop dynamic capabilities, which has greater significant effects on firm performance. This research concludes by saying that high performance firms respond rapidly to new knowledge and also that there is a strong association between IC and ACAP affecting the performance of SMEs. It is also concluded that CEOs and managers are able to enhance the level of performance in high-tech SMEs by the creation or development of dynamic capabilities through the integration between firm IC and ACAP.

Thesis (Ph.D.)--Capella University, 2001. / Includes bibliographical references (leaves 109-115).

Thesis (Ph. D.)--University of Washington, 2000. / Vita. Includes bibliographical references (leaves 98-112).

Thesis (Ph. D.)--Emory University, 2001. / Includes bibliographical references (leaves 366-380).

No / Purpose ¿ The purpose of the paper was to examine whether, and in what way, managers perceive that the level and shape of intellectual capital (IC) within firms influences management accounting practice, specifically, performance measurement, planning and control, capital budgeting, and risk management. It also explores whether such firms are better able to respond to unanticipated economic and market changes and achieve relatively higher performance within their sector. Design/methodology/approach ¿ The paper is based on the results of a study conducted in Malaysia through a questionnaire survey in 119 large companies with varying levels of IC and selected interviews with both accounting and non-accounting executives in a subset of them. Findings ¿ The findings in the paper suggest some evolution in management accounting practices for firms investing heavily in IC. The findings are discussed and further explored through interviews in some of the firms analysed. Research limitations/implications ¿ The limitations of survey research in this paper are acknowledged, however these are ameliorated by confirmatory insights from the interviews. Further research could be carried out using more extensive case studies in companies, perhaps longitudinally, or undertaken using sector focused surveys. Practical implications ¿ It is important to show in the paper that management accounting systems reflect the strategic orientation of the companies concerned. Where a greater focus on intangibles and intellectual capital occurs it may require a different emphasis on management accounting practices compared to companies where they do not feature strongly. It is important that management recognise and act on this in order to improve corporate performance. Originality/value ¿ The paper shows that it is widely recognised that (IC), whether in the form of knowledge, experience, professional skill, good relationships, or technological capacity is a major source of corporate competitive advantage. Whilst the literature places considerable attention on the valuation, measurement and reporting of IC for external reporting purposes, far less attention has so far been given to the implications of IC for managerial accounting practice. This paper addresses this omission.

The competitive environment in the banking industry globally and in South Africa is putting immense pressure on companies to keep track of changes in technology, customer demands, and market trends. Responses to the above will allow a company in South Africa to improve customer service and thus remain competitive and relevant. This dissertation is to determine the status and interpretation of intellectual capital (intangible assets) within a South African banking and service company. This study explores the way in which intellectual capital characteristics contribute towards a competitive advantage. A case study method was applied and interviews were conducted to capture responses. The questions were structured, but the discussions allowed for additional questions to be asked during the interviews.

Technological breakthroughs experienced globally have opened new avenues of opportunities; creating a virtual environment that transforms and changes businesses, organisations, social, economical and political landscapes. Such a wave of change affects all walks of life as internet connectivity gives the web a presence that engulfs workplaces and other organisational settings. In maintaining competitiveness, organisations strive to use knowledge to create value in the challenging new environment. The study aimed to develop a framework that will be used for the critical evaluation of strategies for value creation within knowledge-driven organisations using available resources. The research used mixed methods in two case studies; the first for developing a conceptual framework and the second for critiquing it. Through a literature review and observation at AB institute main venue, case study 1 identified crucial intangibles for creating value. Knowledge workers (academics and non-academics) were the study participants in primary research that used indepth interviews and questionnaires to collect data. Over four phases, the study unfolded to three neighbouring institutions for a wider representation. All the institutions covered in case study 1 were within the higher learning industry. The data were analysed and the findings revealed six features and six themes in two separate models, which formed the conceptual framework. The framework models were denoted as part A and B. Part A: the organisational Critical Evaluation of Strategies for Value Creation xv perspective shows the context within the features: ‘knowledge flow, departments, new entrants, dynamic, recognition and the deliverables’. The individual global perspective forms part B with the themes: individual commitment, emotional capital, proactive environment, workplace interaction, value creation process and endless global connectivity. The four phases of the research process in case study 1 eased data collection, in triangulation for the convergance of evidence which produced the conceptual framework. Case study 2 started in the UK and later in Tanzania was designed to critique the conceptual framework, the outcome of case study 1. Knowledge workers comprising ‘academics and non-academics’ from higher learning and other organisations formed the participantsin the 57 in-depth interviews of which had data collection under the instrument based on informed consent and confidentiality. Using mixed methods the data were analysed and findings presented as a condensed ‘qualitative knowledge’ of themes and features in ‘focused codes’ as a matrix to merge the models of the framework. The findings suggest that the framework will enhance understanding as a guide to unleash and create value; a lens for both decision makers and knowledge workers to use action research in endeavour to seize opportunities and initiatives for creating value through existing practices. It is a guide to harness ideas from interconectivity changing them into workable realities. The main contribution of the research is the developed framework and body of knowledge from the primary research findings of case studies 1 and 2.

published_or_final_version / abstract / Public Administration / Master / Master of Public Administration