Leif Edvinsson

Some perspectives on intangibles and intellectual capital 2000

After posing some questions regarding the nature of intellectual capital, the paper explores IC through observing the changes in market dynamics and organizational structure. An IC growth model is discussed which involves visualizing IC, human capital injection, human capital transformation into structural capital, and structural capital injection.

Internationalisation in Service Companies

This article presents a conceptual framework for analysing the internationalisation of knowledge-intensive service companies. The framework has been developed as a result of an empirical study of ten Scandinavian companies, representing different types of service -for instance, insurance, consulting and security. The internationalisation process is divided into four stages: prospecting, introduction, consolidation and reorientation. One major implication of the study is that internationalisation should not be viewed as mainly a question of globalisation or adaptation to local business conditions, as is usually assumed in the litera- ture. Instead it is the interplay between these two major strategic orientations that determines the outcome of the inter- nationalisation process, and companies need to learn how to balance the two successfully. The empirical results and practical implications of the study are summarised in a number of theses dealing with the overall guidance of the internationalisation process.

Innovations: the new unit of analysis in the knowledge era

For quite a while the issues of knowledge management, innovation and performance measurement have been on the agenda of researchers and practitioners alike throughout the world. Not too long ago it was recognised that there are direct cause and effect relations between knowledge reuse and invention. The present paper therefore discusses the constituent elements of innovation from a knowledge perspective which have been identified in the context of a European Union co‐sponsored research project. The six facts of the “innovation cube” are: reuse of existing knowledge; invention of new knowledge; exploitation (i.e. turning knowledge into value); stakeholders contributions (to the innovation life cycle); the enabling ecology or operating context in which the innovation occurs; and the performance facet, i.e. the bottom line. A toolkit based on performance measurement thinking and implementation process for better management of the balance between reuse and invention in development environments is proposed and results from their deployment in three real‐life case studies are discussed.

Intellectual capital (IC) or Wissensbilanz process: some German experiences

Purpose – This article aims to summarise a successful, pioneering prototyping project in Germany with IC statements, supported by the German Ministry of Labour and Economics (BMWA).Design/methodology/approach – A systematic process view method has been applied. A special impact scoring method generates a map, enabling management to determine where they should give executive priority for intellectual capital investment.Findings – Most of the participating companies would like to have a more standardized Wissensbilanz with indicators for added value in order to use the tool as a complimentary report (management report) for the purpose of external reporting as well as comparison.Originality/value – The project has now inspired some 100 enterprises of different types and is now spreading outside Germany.

The Intellectual Capital of Nations

Just as an organization’s value is a function of its intellectual capital, the wealth of a nation — present and potential — is linked to its intellectual capital (IC). This chapter argues that it is imperative for leaders to recognize and address the IC potentials of their nations. Issues pertaining to consideration and reporting of a nation’s IC are outlined. Activities along these lines in several nations are described.

Assessing national and regional value creation

In the knowledge economy, the value of corporations, organizations and individuals is directly related to their knowledge and intellectual capital. This does not only apply to organizations in the private or public sector but also to entire nations. If intangibles and intellectual capital are important to organizations, they are also important to the productivity and competitiveness of nations as a whole. The question we try to answer is how can we better understand the dynamics of intangibles on a national scale?

Intelligent remuneration in the knowledge economy for growth of intellectual capital

Purpose – The aim of this article is to highlight some characteristics of balancing dimensions for an intelligent remuneration system in the knowledge economy; in other words, what to look for when remunerating sustainable growth of capabilities for future earnings potential (i.e. intellectual capital). The article also aims to present a supplement to the thinking regarding compensation systems.Design/methodology/approach – The article is based on and refined from a MBA thesis by J. Camp and presents a perspective on intelligent remunerations based on intellectual capital, motivational psychology and knowledge management theory.Findings – This paper presents some aspects of an intelligent remuneration system for growth of intellectual capital by unleashing a larger potential of the human capital dimensions. In order to enhance mind value‐added by talents, enterprises need to offer their people a more sustainable remuneration on their invested personal human capital, consisting of both tangible and intangi...

The New Business Focus

Muscle and machine power will shortly be replaced mainly by thought power. The transformation of society means a new business logic not based on the traditional factory perspective. Clearly there is a strategic challenge to develop business strategies where thoughtware and soft assets (especially human capital) are very much the basis for increased value-adding and productivity growth. Consequently, it is information processing which is becoming much more dominant in the value-adding process. This requires more investment into software intensive human resources and new indicators (such as returns on human capital) as well as mapping or identification systems. This new business focus requires much more attention to costs, value and profitability. The commer- cial challenge lies partly in information usage and design of profitable service packages and delivery systems, not to mention the evaluation and investment in packaging, pricing and organisation of these soft entities. This article offers a systematic...

Wissensbilanzen — „Made in Germany“ Ein Praxisbericht aus dem Mittelstand

Die wichtigste Saule der wirtschaftlichen Starke der Bundesrepublik Deutschland ist der Mittelstand. Mittelstandische Unternehmen, also jene mit bis zu etwa 500 Arbeitnehmern, beschaftigen mit Abstand am meisten Mitarbeiter und sind ein verlasslicher Motor fur Innovationen und bestandige Qualitatsverbesserung. Fur das Bundesministerium fur Wirtschaft und Arbeit (BMWA) stellt sich daher die Frage, wie dieser Mittelstand, der durch seine direkten und indirekten Steuerleistungen auch den wichtigsten Beitrag zum Wohlstand des Landes leistet, optimal fur die Herausforderungen der Wissensgesellschaft unterstutzt werden kann. Das langfristige Ziel der unter der Uberschrift „Fit fur den Wissenswettbewerb“ laufenden Initiative ist die Sicherung und Entwicklung des Innovationsstandortes Deutschland (BMWA 2004). Das Institut fur Produktionsanlagen und Konstruktionstechnik der grosten deutschen Forschungsanstalt, der Fraunhofer Gesellschaft, wurde beauftragt, gemeinsam mit erfahrenen Experten aus dem Ausland zu uberprufen, wie mit dem Instrument der „Wissensbilanz“1 diese Ziele unterstutzt werden konnen. Drei Uberlegungen spielten bei der Auswahl der Wissensbilanz als mogliches Instrument eine besondere Rolle: Wie kann der Unternehmenswert einer Organisation durch Erhohung der Produktivitat und klarere Entscheidungen verbessert werden?

The Internationalization Process in Service Companies

Various kinds of services account for approximately 30-35 per cent of world trade. Internationalization of service companies is consequently an important research field, yet there are very few published studies on the subject. In this chapter, we present results from a study of ten Scandinavian service companies representing different industries such as instance insurance, security, and consulting companies.