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

Aino Kianto, Paavo Ritala, Mika Vanhala and Henri Hussinki

CRITICAL PERSPECTIVES ON ACCOUNTING, 2020, vol. 70, issue C

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.

Keywords: Intellectual capital; Critical; Measurement; Knowledge (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:crpeac:v:70:y:2020:i:c:s1045235418301576

DOI: 10.1016/j.cpa.2018.05.002

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