Japanese journey on intangibles as the key factor of value creation for a company

Takayuki Sumita

Chapter 21 in Handbook on Intangibles, 2026, pp 359-394 from Edward Elgar Publishing

Abstract: This chapter provides a comprehensive analysis of Japan’s pioneering journey in recognizing and integrating intangible assets as critical drivers of corporate value creation. In response to the economic stagnation following the collapse of the bubble economy, Japanese policymakers and thought leaders shifted focus from traditional financial metrics toward intellectual assets such as human capital, organizational capabilities, and stakeholder relationships. The chapter traces the evolution of this shift through the development of policy instruments like the Intellectual Asset-based Management (IAbM) guidelines, the emergence of WICI and its international frameworks, and the adoption of integrated reporting practices across both large corporations and SMEs. It critically assesses the conceptual foundation of value creation based on the unique combination and deployment of intangibles, including their role in shaping business models, governance, and disclosure standards. Furthermore, the chapter highlights the contribution of tools such as the Business Management Design Sheet (KDS) in enhancing the clarity, comparability, and strategic coherence of intangible-related disclosures. Ultimately, the Japanese model offers an alternative to checklist-driven ESG disclosure approaches, emphasizing narrative, materiality, and the individuality of value-creation processes, thereby offering a potential blueprint for global reporting reform.

Keywords: Intangibles; Value creation; Japanese companies; Corporate reporting; Intellectual capital (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035306367
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781035306374.00028 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:22045_21

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Jack Sweeney ().