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Reflections on the criteria for the sound measurement of intellectual capital: A knowledge-based perspective

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  • Kianto, Aino
  • Ritala, Paavo
  • Vanhala, Mika
  • Hussinki, Henri

Abstract

As knowledge has become a key factor of competitive advantage for organizations, regions, and nations, its measurement has gained tremendous importance. During the last two decades, the intellectual capital school of thought has produced numerous measurement frameworks and models for capturing the intangible bases of value creation, which currently occupy a well-established position in academia. In this paper, we argue that something important might have been lost along the way, namely, a thorough understanding of knowledge as the basis for human and organizational productive behavior. We argue that in order to remain relevant in the face of the increasing knowledge intensity of work, organizing, and value creation, the measurements of intellectual capital (IC) should revisit the foundations of what knowledge is. In order to regain this understanding, this paper draws on a knowledge-based perspective and proposes four critical themes that should be better recognized in IC measurement: multi-dimensionality, human agency and action, contextuality, and temporality and dynamics. We discuss the challenges that each theme poses for IC measurement and construct a set of criteria and applications for a more adequate measurement of IC.

Suggested Citation

  • Kianto, Aino & Ritala, Paavo & Vanhala, Mika & Hussinki, Henri, 2020. "Reflections on the criteria for the sound measurement of intellectual capital: A knowledge-based perspective," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:crpeac:v:70:y:2020:i:c:s1045235418301576
    DOI: 10.1016/j.cpa.2018.05.002
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    2. Kristof Van Criekingen & Carter Bloch & Carita Eklund, 2022. "Measuring intangible assets—A review of the state of the art," Journal of Economic Surveys, Wiley Blackwell, vol. 36(5), pages 1539-1558, December.
    3. Madugba Joseph Ugochukwu & Egbide Ben-Caleb & Uzondu Anoruoh Paul & Oparah Vivian Iheaku & Adesola Deborah Ayomide, 2023. "Intellectual Capital Value Addition and the Efficient Assets Management of Listed Manufacturing Firms in Nigeria," Folia Oeconomica Stetinensia, Sciendo, vol. 23(2), pages 241-260, December.
    4. Dr. Farah Yasser & Dr. Ghulam Murtaza Lahbar & Dua Ali & Ali Raza Zaidi, 2024. "Assessing the Connection between Intellectual Capital and Financial Success in Islamic Banking: Empirical Analysis," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(3), pages 197-202.

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