Main Article Content
In this Economic Knowledge era, the factors that create firm value are not tangible assets, but intellectual capital. According to the problem of preparation and presentation of financial statements, intellectual capital cannot be presented in the statement of financial position. This article presents a review of the literature on intellectual capital, starting from evolution, definitions of intellectual capital that is diverse but has the same common elements, the composition of intellectual capital, how to measure the value of intellectual capital that is divided by characteristics of the same data and methods, including the disclosure of information about intellectual capital that enables managers to understand and exploit the benefits of intellectual capital in terms of increasing overall firm value. The final part of this article provides suggestions for future research, in order to provide empirical evidence about whether intellectual capital is useful for creating a true competitive advantage.
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
All published articles are JMS’s copyright. JMS allows all published articles to be copied, excerpted or disseminated with academic citation.
Ariawan, M. S., & Djumahir, G. (2016). The role of spiritual capital, human capital, structural capital, and relational capital of SMEs to improving on performance: Study literature. South East Asia Journal of Contemporary Business. Economics and Law, 11(2), 87-94.
Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of management, 27(6), 643-650.
Basta, M., & Bertilsson, R. (2009). Innovation and Internal reporting of Intellectual Capital-An emperical study. Retrieved January 1, 2020, from https://gupea.ub.gu.se/bitstream/gupea_2077_20891_1.pdf
Bontis, N. (2001). Assessing knowledge assets: a review of the models used to measure intellectual capital. International Journal of Management Reviews, 3(1), 41-60.
Bontis, N., Keow, W. C. C., & Richardson, S. (2000). Intellectual capital and business performance in Malaysian industries. Journal of Intellectual Capital, 1(1), 85-100.
Bosworth, D., & Rogers, M. (2001). Market value, R&D and intellectual property: an empirical analysis of large Australian firms. Economic Record, 77(239), 323-337.
Brennan, N. (2001). Reporting intellectual capital in annual reports: evidence from Ireland. Accounting, Auditing & Accountability Journal, 14(4), 423-436.
Cordazzo, M. (2007). Intangibles and Italian IPO prospectuses: a disclosure analysis. Journal of Intellectual Capital, 8(2), 288-305.
Cuozzo, B., Dumay, J., Palmaccio, M., & Lombardi, R. (2017). Intellectual capital disclosure: a structured literature review. Journal of Intellectual Capital, 18(1), 9-28.
Deegan, C. (2006). Legitimacy theory. in Z. Hoque (ed.), Methodological Issues in Accounting Research: Theories, Methods and Issues (pp. 161-181). London: Spiramus.
Donaldson, T., & Preston, L. E. (1995). The stakeholder theory of the corporation: Concepts, evidence, and implications. Academy of Management Review, 20(1), 65-91.
Eccles, R. G., & Krzus, M. P. (2010). One report: Integrated reporting for a sustainable strategy. New York: John Wiley & Sons.
Edvinsson, L, & Sullivan, P. (1996) Developing a Model for Managing Intellectual Capital. European Management Journal, 14(4), 356-364.
Edvinsson, L., & Malone, M. S. (1997). Intellectual capital: The proven way to establish your company's real value by finding its hidden brainpower. London: Piatkus.
Gogan, L. M., & Draghici, A. (2013). A model to evaluate the intellectual capital. Procedia Technology, 9, 867-875.
Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109-122.
Guthrie, J., & Petty, R. (2000). Intellectual capital: Australian annual reporting practices. Journal of Intellectual Capital, 1(3), 241-251.
Holland, J. (2006). Fund management, intellectual capital, intangibles and private disclosure. Managerial Finance. 32(4), 277-316.
Kaplan, R. S., & Norton, D. P. (2005). The balanced scorecard: measures that drive performance. Harvard Business Review, 83(7), 71-79.
Khalique, Isa and Shaari. (2013). Predicting the Impact of Intellectual Capital Management on the Performance of SMEs in Electronics Industry in Kuching, Sarawak, The IUP Journal of Knowledge Management, 6(4), 53-61.
Khan, M. W. J. (2014). Identifying the Components and Importance of Intellectual Capital in KnowledgeIntensive Organizations. Business and Economic Research, 4(2), 297-307.
Kitts, B., Edvinsson, L., & Beding, T. (2001). Intellectual capital: from intangible assets to fitness landscapes. Expert Systems with Applications, 20(1), 35-50.
Kozak, M. (2011). Strategic Approach to Intellectual Capital Development in Regions. International Journal of Learning and Intellectual Capital, 8(1), 76-93.
Krstić, B., & Bonić, L. (2016). EIC: a new tool for intellectual capital performance measurement. Prague Economic Papers, 2016(6), 723-741.
Lev, B. and Mintz, S.L. (1999). Seeing Is Believing: A Better Approach to Estimating Knowledge Capital. CFO Magazine, 15(2), 29-37.
Lindblom, C. K. (1994). The implications of organizational legitimacy for corporate social performance and disclosure. Paper presented at the Critical Perspectives on Accounting Conference, New York.
Marr, B., Schiuma, G., & Neely, A. (2002). Assessing strategic knowledge assets in e-business. International Journal of Business Performance Management, 4(2-4), 279-295.
Mouritsen, J. (2004). Reporting on intellectual capital: why, what and how? Measuring Business Excellence, 8(1), 46-54.
Nazari, J. A. (2015). Intellectual capital measurement and reporting models. In Knowledge Management for Competitive Advantage During Economic Crisis (pp. 117-139). IGI Global.
Patten, D. M. (1991). Exposure, legitimacy, and social disclosure. Journal of Accounting and Public Policy, 10(4), 297-308.
Petty, R., Cuganesan, S., Finch, N., & Ford, G. (2009). Intellectual capital and valuation: challenges in the voluntary disclosure of value drivers. Retrieved November 22, 2019, from SSRN: http://dx.doi.org/10.2139/ssrn.1490208
Pulic, A. (1998). Measuring the performance of intellectual potential in knowledge economy. In 2nd McMaster Word Congress on Measuring and Managing Intellectual Capital by the Austrian Team for Intellectual Potential (pp. 1-20).
Rodov, I. and Leliaert, P. (2002). FiMIAM: financial method of intangible assets measurement. Journal of Intellectual Capital, 3(3), 323-336.
Roos, G., & Roos, J. (1997). Measuring your company's intellectual performance. Long Range Planning, 30(3), 413-426.
Starovic, D., & Marr, B. (2003). Understanding corporate value: managing and reporting intellectual capital: CIMA.
Sveiby, K. E. (1997). The Intangible Assets Monitor. Journal of Human Resource Costing & Accounting, 2(1), 73-97.
Sveiby, K. E. (2007). Methods for Measuring Intangible Assets. Retrieved January 29, 2020, from https://www.sveiby.com/article/Methods-for-Measuring-Intangible-Assets
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571-610.
Sullivan, P. H. (2000). Valuing intangibles companies–An intellectual capital approach. Journal of Intellectual Capital, 1(4), 328-340.
Taliyang, S. M., & Jusop, M. (2011). Intellectual capital disclosure and corporate governance structure: evidence in Malaysia. International Journal of Business and Management, 6(12), 109-117.
Verbano, C., & Crema, M. (2013). Measuring IC following a semi-qualitative approach: An integrated framework. Intangible Capital, 9(3), 539-558.
Yilmaz, I., & Aacar, G. (2018). The effects of intellectual capital on financial performance and market value: Evidence from Turkey. Eurasian Journal of Business and Economics, 11(21), 117-133.