Extended VAIC model: measuring intellectual capital components

Abstract

Purpose -In the intellectual capital (IC) literature, only a few studies have analyzed the relationships among the components of IC and organizational success. This study sets out to extend the current models to provide further insight into the role of IC in organizational performance. Design/methodology/approach -The study provides a theoretical discussion designed to push the measurement of IC into a more rigorous and comprehensive domain. Findings -As this is a theoretical paper, several hypotheses are presented for testing in the future. Practical implications -Recognizing the most influential elements of IC on organizational performance would help organizations to understand better the organizational capabilities they possess. In addition, the suggested extension would enable researchers to use archival resources to do cross-company comparisons. Originality/value -The suggested extension to the VAIC model builds on several IC models that have not been well-connected in the literature previously.

The Mediating Effect of Financial Performance on the Relationship between Shariah Supervisory Board Effectiveness, Intellectual Capital and Corporate Social Responsibility, of Islamic Banks in Gulf Cooperation Council Countries

“…Intellectual capital has been defined by Edvinsson & Sullivan (1996) as "knowledge that can be converted into value" (cited in Nazari & Herremans, 2007). This is evident in major corporate who have proven that developing a strong goodwill requires valuable human resources.…”

An Integrated Model to Explain How Corporate Social Responsibility Affects Corporate Financial Performance

“…HU generates value through investments to increase the knowledge, skills, talents, and know-how of individuals [51]. Therefore, employee costs are used as an indicator of HU [75]. The calculation of VAHU is as follows:…”

“…At the same time, the validation and application of this method have been supported by several scholars [76]. Following Firer and Williams [60], Pulic [73], and Nazari and Herremans [75], we describe the following steps in computing VAIC™:…”

“…According to the Austrian approach in intellectual capital theory [49,61,[73][74][75], intellectual capital is a multidimensional construct that can be measured using the VAIC™ model. Pulic [73] concluded that a company's value creation principally originates from intellectual capital and physical capital.…”

Intellectual Capital and Business Performance in Professional Football Clubs: Evidence From a Longitudinal Analysis

“…While IC researchers mostly agree on this basic taxonomy, the issue of IC measurement is still at an "exploratory stage" (Nazari & Herremans, 2007) due to a lacking consensus on a general measurement approach or coherent measurement theory for IC. Moreover, any discussion of IC measurement is inherently context-specific, because IC is to be considered as "something absolutely peculiar to each and every company", hence the selection of IC categories and measures needs to consider and be based on the "idiosyncratic situation" of each company (Bontis, Dragonetti, Jacobsen, & Roos, 1999).…”