Nick Bontis

Intellectual capital: an exploratory study that develops measures and models

This paper details an empirical pilot study that explores the development of several conceptual measures and models regarding intellectual capital and its impact on business performance. The objective of this pilot study is to explore the development of items and constructs through principal components analysis and partial least squares (PLS). The final retained, subjective measures and optimal structural specification show a valid, reliable, significant and substantive causal link between dimensions of intellectual capital and business performance. These results should help both academics and practitioners more readily understand the components of intellectual capital and provide insight into developing and increasing it within an organization. Suggestions are then made to advance and improve this research programme.

Assessing knowledge assets: a review of the models used to measure intellectual capital

This paper reviews the literature pertaining to the assessment of knowledge assets. Since knowledge assets are at the crux of sustainable competitive advantage, the burgeoning field of intellectual capital is an exciting area for both researchers and practitioners. Unfortunately, the measurement of such intangible assets is difficult. A variety of models have surfaced in an attempt to measure IC and this paper aims to highlight their strengths, weaknesses and operationalizations.

Intellectual capital ROI: a causal map of human capital antecedents and consequents

This report describes the results of a ground‐breaking research study that measured the antecedents and consequents of effective human capital management. The research sample consisted of 76 senior executives from 25 companies in the financial services industry. The results of the study yielded a holistic causal map that integrated constructs from the fields of intellectual capital, knowledge management, human resources, organizational behaviour, information technology and accounting. The integration of both quantitative and qualitative measures in an overall conceptual model yielded several research implications. The resulting structural equation model allows participating organizations and researchers to gauge the effectiveness of an organization’s human capital capabilities. This will allow practitioners and researchers to more efficiently allocate resources with regard to human capital management. The potential outcomes of the study are limitless, since a program of consistent re‐evaluation can lead to the establishment of causal relationships between human capital management and economic and business results.

National Intellectual Capital Index

The intellectual capital of a nation (or a region of nations) requires the articulation of a system of variables that helps to uncover and manage the invisible wealth of a country. Most importantly, an emphasis on human capital allows for a better understanding of the hidden values, individuals, enterprises, institutions, and communities that are both current and potential future sources of intellectual wealth. This paper endeavours to address the five research questions. The main outcomes of this paper are the development of a national intellectual capital measurement methodology and index. The NICI is also used within a structural equation model to test several hypotheses related to national intellectual capital development.

Managing organisational knowledge by diagnosing intellectual capital: framing and advancing the state of the field

Since organizational knowledge is at the crux of sustainable competitive advantage, the burgeoning field of intellectual capital is an exciting area for both researchers and practitioners. Intellectual capital is conceptualized from numerous disciplines making the field a mosaic of perspectives. Accountants are interested in how to measure it on the balance sheet, information technologists want to codify it on systems, sociologists want to balance power with it, psychologists want to develop minds because of it, human resource managers want to calculate an ROI on it, and training and development officers want to make sure that they can build it. The following article represents a comprehensive literature review from a variety of managerial disciplines. In addition to highlighting the research to date, avenues for future pursuit are also offered.

User acceptance of wireless short messaging services: Deconstructing perceived value

Wireless value-added pay-per-use services, such as short messaging services (SMS), have attracted increased attention in recent years. Nevertheless, the extant literature has provided little insight into technology adoption of wireless pay-per-use services. Our study examined this adoption by combining marketing and IS perspectives through an empirical survey of 222 young-adult SMS users. It was hypothesized that perceived value would be a key multidimensional determinant of behavioral intentions. The paper therefore discusses a broadened conceptualization of technology adoption in which value tradeoffs (i.e., price, social, emotional and quality) are critical drivers in the adoption decision.

User acceptance of hedonic digital artifacts: A theory of consumption values perspective

Hedonic digital artifacts have become prevalent in todays society. Their users typically pay for them, and in exchange are generally provided with benefits involving enjoyment. Todays research on technology adoption and use, though, has focused mostly on organizational or personal aids that provide efficiency and effectiveness and are free of charge for users. To bridge this gap, we identified several value drivers of hedonic digital artifacts and measured them in the context of mobile phone ringtones using the theory of consumption values. Hypothesis testing was performed using PLS on data collected from 422 ringtone users. Results confirmed that the overall value of hedonic digital artifacts is a third-order composite assessment, which successfully predicted behavioral usage and positive word-of-mouth intentions. Theoretical and practical implications were discussed.

INTELLECTUAL CAPITAL AND BUSINESS PERFORMANCE IN THE PHARMACEUTICAL SECTOR OF JORDAN

Purpose – The purpose of this study is to empirically test the relationship between intellectual capital (i.e. human capital, structural capital, relational capital) and business performance within the pharmaceutical sector of Jordan.Design/methodology/approach – A valid research instrument was utilized to conduct a survey of 132 top‐ and middle‐level managers from all 15 members of the Jordanian Association of Pharmaceutical Manufacturers.Findings – A correlation and path analysis were conducted to ascertain the validity of the measures and models. Statistical support was found for the hypothesized relationships.Research limitations/implications – The findings offer valuable insights on the generalizability of intellectual capital in a novel research setting.Practical implications – Intellectual capital measurement is of primary interest for senior executives of pharmaceutical firms in Jordan.Originality/value – The research reported is among only a few to investigate the issue of intellectual capital in...

The mediating effect of organizational reputation on customer loyalty and service recommendation in the banking industry

Purpose – The overall purpose of this study was to develop an understanding of the mediating effect of organizational reputation on service recommendation and customer loyalty.Design/methodology/approach – Four models were developed that were variations of the American Customer Satisfaction Model (ACSM). These models were then tested by using the Partial Least Squares (PLS) procedure on a data collected from a survey that yielded 8,098 respondents.Findings – It was found that customer satisfaction enhances reputation in the service environment. It was also discovered that reputation partially mediates the relationship between satisfaction and loyalty, and that reputation partially mediates the relationship between satisfaction and recommendation.Research limitations/implications – More research needs to be undertaken to explore the role of reputation within the ACSM. It is necessary to conduct research employing experimental design with longitudinal data captured from across industries using robust measur...

A MODEL OF THE IMPACT OF MISSION STATEMENTS ON FIRM PERFORMANCE

A relationship between mission and organizational performance was modeled by drawing on previous research. The model was tested with data from 83 large Canadian and US organizations. We found that mission statements can affect financial performance, however, not as one might have anticipated initially. Several mediating elements were observed to exist. For instance, “commitment to the mission” and the “degree to which an organization aligns its internal structure, policies and procedures with its mission” were both found to be positively associated with “employee behavior”. It was this latter variable which was observed, in turn, to have the most direct relationship with financial performance.