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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JUNE 2011
VOL 3, NO 2
2- Roos, Roos, Dragonetti, and Edvinson (1997), through extensive research and experimental
test has found that the increase and decrease (changes) in intellectual capital affects the
organization’s financial performances increasingly.
Therefore, in order to obtain competitive advantages, the organizations need to increase
and develop their resources strategically. It is not exaggeration to say that all the organizational
capabilities are based on their knowledge and performance because this kind of knowledge and
information gives the company identification, power, preserving and restoring the qualification
and competence.
Measuring intellectual capital
Management is tied to measurement and evaluation since things, which have basis foe
measurement, would be managed. In general measurement is inevitable in effective management.
A consulting center in Swiss conducted some studies in the field of intellectual capital and found
that only %20 of the organization’s knowledge was used and the reason is known to be the lack
of appropriate measurement of intellectual and knowledge capitals. To measure each capital, the
created value (return) in it should be identified. In a simple definition, intellectual capital is
defined as a difference between book and market value, and this difference indicates the
intellectual capital return so that the whole organization value is more that what was reported
earlier.
For better description of the matter, Sveiby’ measurement (1997) states that suppose a person is
in charge of measuring stream’s water. Different ways may exist for measuring the water, but the
measurer should pay attention to the measurement objectives and the consumers. He also
believes that the risk of changes and the drying of the stream should be taken into account.
Therefore, what is the purpose of measuring the intellectual capital? Perhaps the answer is to
maximize the owners’ wealth through developing and optimal allocation of resources. General
framework of intellectual capital is as follows (see Figure 1).
Intellectual capital
measurement
Development
&allocation of
optimal resources
Maximizing the
wealth of capital
holders
Figure 1: Measurement and Management Link
Report of
measurement
result
Clarity in report
management and
improvement
Making a valid
report
Who uses intellectual capital reporting? As it is, clear for improving traditional report,
intellectual capital should be included. Therefore, measuring intellectual capital as well as other
conventional reports can be used by a wide range of users such as managers, actual and potential
investors, creditors, government agencies and so on. Intellectual capital with its gained
significance would affect logical users’ decision-making about reports and financial statements.
Skandia’s intellectual capital model
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