Maria do Rosário Cabrita

Modelling the creation of value from intellectual capital: a Portuguese banking perspective

Despite the widely recognised importance of intellectual capital as a vital source of competitive advantage, there is still little understanding of how organisations actually combine their components to drive value. The purpose of this study is to examine the interrelationships among intellectual capital components within the Portuguese banking context by extending a study completed by Bontis. Several paths are identified that drive towards superior performance. Various models are assessed using a Partial Least Squares (PLS) approach given its advantages in dealing with complex models and its predictive capability. Empirical findings from this study support the proposition that intellectual capital is a driver of organisational value, but only in certain combinations.

Intellectual capital: a phenomenon of interrelationships

Intellectual capital (IC) has become a critical performance driver. The logic of creating value has changed and the knowledge-based resources are now at the heart of management systems. This study seeks to explore the interrelationships amongst the IC components and business performance in the context of the Portuguese banking industry. Models are assessed using a partial least squares approach, a non-parametric statistical alternative. The findings show that organisational value is created and nurtured through the effective interaction of the three dimensions of IC, and developing an IC System would help to identify which combinations of IC elements create value.

Leveraging Knowledge Management with the Balanced Scorecard

In a rapidly changing environment, innovative firms are increasingly using the Balanced Scorecard (BSC) to identify and communicate key factors that drive future value. Knowledge is described as the only meaningful resource in the Knowledge Economy (KE). Although there is recognition that knowledge is a key business asset, many organizations still do not understand the implications of Knowledge Management (KM). The key is to understand what makes knowledge valuable and, in particular, how knowledge creates wealth in a knowledge-driven economy. KM deals with the production, application, and distribution of knowledge within and between organizations. Such intellectual assets are always constituted through practices and undertakings in an everyday work life setting. This paper seeks to examine how the BSC represents a relevant tool to KM, bridging the gap between strategic objectives set at the senior level within an organization and their operational execution.

Competitiveness and disclosure of intellectual capital: an empirical research in Portuguese banks

Purpose The purpose of this paper is to investigate the level of intellectual capital (IC) awareness among Portuguese bank managers and which disclosure techniques are most common. The annual report is regarded by some authors as the most important vehicle of information about banks’ affairs because of some specific characteristics of banks’ activities. However, organizations are increasingly using their webpages to disclose a broad spectrum of information. The objectives of this study are twofold: to investigate how Portuguese bank managers perceive the impact of IC disclosure on the bank’s competitiveness; and to assess the extent to which Portuguese banks voluntarily report their IC in annual reports vs webpages. Design/methodology/approach The methodology involved in the exploratory study includes the collection of secondary data – annual reports and websites – collected from the 28 banks operating in Portugal, and semi-structured interviews from 25 banking managers. Content analysis is applied using a constructed index based on two European frameworks – Intellectus and InCaS – slightly modified to take into consideration the peculiarities of the sector. Findings Results show higher level of IC disclosure in annual reports than that provided in websites. Human capital and structural capital are the most reported category in annual reports and, conversely, the disclosure of relational capital is higher in the webpages. Findings are found similar in comparison to various other studies on the subject which reveal very low level of IC disclosure, not yet receiving priority from the mentors of banks. Interviews reveal that not many managers recognize the need and significance of measuring and reporting IC, although it is recognized as a driver of competitiveness. For protecting business confidentiality, banks do not want to report information of sensitive nature. Research limitations/implications The analysis is limited to a single sector. Future research can expand to other industries (e.g. manufacturing, technological, services) to enable a more comprehensive understanding of IC disclosure in Portugal. The cross-sectional approach is also a limitation. A longitudinal study could be conducted for capturing the trend of reporting practices during the period. Further research could apply research methods other than content analysis (e.g. questionnaire survey, interviews or mixed-methods) in order to obtain a more in-depth view of how the Portuguese organizations manage, measure and report their IC. Practical implications Research may be of relevance for both banking managers and regulators. For banking managers because it offers an opportunity to envisage their banks’ future potential for growth and competitiveness. For regulators, the relevance of the study focusses on their understanding of developing mandatory reporting or additional policy requirements. This study provides a motivation for further research that contributes to a body of knowledge and practices on the IC disclosure. Social implications Emerging from the years of a financial crisis, restoring trust and confidence is the most critical challenge for banks to become competitive. IC disclosure could help to restore confidence. Originality/value The existing literature on the IC reporting and disclosure in the context of banking sector is limited. Based on the Intellectus model and the InCaS model we built an index of IC disclosure to banking sector which contributes to a greater accuracy, transparency and reliability in the disclosure of this unique sector. This initiative may encourage its applicability in other sectors.

Application of Lean Six-Sigma methodology to reducing production costs: case study of a Portuguese bolts manufacturer

Abstract This study describes a procedure that applies the Lean Six-Sigma approach to reducing the production costs of a Portuguese bolts manufacturer. The project was proposed by the product’s customer, who suggested improving some parameters of the processes associated with its manufacture. The customer’s expectations and requirements are called ‘Voice Of the Customer’ (VOC) focusing on the reduction of production costs. Bolts manufacturing has some particularities, such as the considerable lot-size and the high level of products produced. Some of the important Six-Sigma and Lean tools are discussed, which will be of help to Six-Sigma practitioners. The empirical study illustrates methods used to Define, Measure, Analyse, Improve and Control (DMAIC) the Six-Sigma approach. This study consolidates the efficiency and the excellence of the DMAIC methodology, providing arguments to demonstrate its usefulness for the implementation of improvements, both in terms of quality and in terms of the effectiveness and efficiency of the processes. This case reveals that there exists an important complementarity between the methodology used and the Lean Six-Sigma concepts when dealing with a continuous improvement project in the context of bolts manufacturing. The findings reinforce conclusions from other studies that the DMAIC methodology can be used in any improvement project, and not just for Six-Sigma projects, whence the methodology emerged.

Diffusion of innovation concepts in Portuguese manufacturing companies

This paper focuses on the diffusion of innovation concepts in Portuguese manufacturing companies. Based on the literature, the concepts of technical and non-technical innovations are explored and three purposes guide our study: (i) to what extent technological and organizational innovation concepts are diffused in Portuguese manufacturing companies; (ii) how the use of technological innovation concepts are interrelated with the use of organizational innovation concepts; and (iii) to what extent Portuguese companies since 2009 have introduced product innovation and product-related service innovation. Data were collected from 62 companies participating in the European Manufacturing Survey (EMS) 2012 and findings indicate that: (i) Portuguese manufacturing companies are more organizationally innovation oriented where quality and price are quoted as the most important competitive factors, whilst service offerings and service sales attain far less rank; (ii) technological innovation concepts are significantly related to organizational innovation; and (iii) product innovation has a higher diffusion level than product-related services.

Applying fuzzy sets for erp systems selection within the construction industry

Construction companies over the last years the have been implementing ERP systems to integrate their business processes and to become more efficient. Due to the complexity of the factors involved in the construction industry, the selection of an ERP system is a difficult process. This paper proposes a methodology applying the fuzzy set theory to the selection process an ERP system for companies within the construction industry.

Entrepreneurship Capital and Regional Development: A Perspective Based on Intellectual Capital

The literature describes entrepreneurial process as a multidimensional and complex phenomenon. Most conceptual frameworks advocate that the entrepreneurship is a function of the opportunity and the individual entrepreneur, his or her characteristics and actions. A knowledge-based perspective suggests that entrepreneurship can be thought of as a function of knowledge and attitude. Such perspective proposes that there is one single dominant factor upon which the opportunity, the individual, and the whole entrepreneurial process are based. This factor is knowledge as a property of individuals or organizations which are intelligent agents in their own right, and which are challenged to have a critical attitude in order to execute the entrepreneurial process. Recent works on this research area suggest that there is a positive link between entrepreneurship, regional economic performance, and the creation of new firms and businesses. Regions are now facing rapidly evolving pressures from global economy. Regions prosperity no longer lies in traditional assets such as cheap land and labor. Instead, regions’ success is shaped by new categories of assets, like skills, innovative firms, lifestyle amenities, cultural assets, and intellectual capital. Although, in the last years, many studies have investigated the knowledge factors grounding local development there are still gaps in the research that need to be filled for the definition of the theory pillars of an intellectual capital dimension of regional development dynamics. This chapter contributes to the literature on the role entrepreneurship plays in regional development, providing a holistic view of the knowledge-based entrepreneurial activity.

How to Make Eco-innovation a Competitive Strategy: A Perspective on the Knowledge-Based Development

Eco-innovation is currently a fuzzy concept in need of theoretical clarification. It is difficult to define because of the complexity of the subject. Nevertheless, eco-innovation can be described as innovation that consists of new or modified products, processes, practices, systems and business methods which aims to prevent or reduce environmental risks and can contribute to environmental sustainability. In this sense, the term eco-innovation has called attention to the positive contribution that industry can make to sustainable development and a competitive economy. Hence, eco-innovation is understood as the combined improvement of economic and environmental performance of society. If eco-innovation is considered a dynamic of our society, economic growth, social development and environmental integrity are essential ingredients of sustainability. Performance is the result of complex socio-economic process and has different dimensions (environmental and economic) and levels (micro and macro). A systematic analysis of eco-innovation dynamic should consider – at micro level – social processes between knowledge, institutions and firms and look for causal links among them. At the macro level, it is necessary to understand environmental, economic and social dimensions in which eco-innovation strategies may develop. The new economy is not only a knowledge economy but also an economy based on responsible behaviour. In the knowledge-based development (KBD), the key to growth and prosperity relies on the issues of acquiring, creating, developing, storing and applying knowledge for a sustainable economic, social and environmental development. A knowledge-based perspective may provide a holistic approach on wealth creation where eco-innovation is seen as a concept which provides direction and vision for pursuing the overall societal changes needed to achieve sustainable development. This chapter aims to explore the foundations of KBD and propose a framework to integrate the two key issues, eco-innovation and KBD.

Linking knowledge management and intellectual capital: An evidence based on Portuguese banks study

Intellectual capital (IC) is the key driver of innovation and sustainable competitive advantage in todays knowledge-based economy. At the same time, knowledge management (KM) is a set of processes that includes knowledge acquisition, development, distribution, utilization, retention and measurement within the organization. This means that the successful management of IC is closely linked to the efficiency of KM processes, which, in turn, implies that the successful implementation of KM ensures the growth and renewal of IC in an organization. Banking industry is one of the most knowledge-intensive industries where IC is the key driver of value creation. Based on previous studies, this article seeks to explore the links between IC and KM in Portuguese banks, by identifying the IC resources of importance and leveraging these resources through KM capability.