Intellectual Capital

Table of Context
Introduction2
Research Question3
Background4
What are Intangible Assets (Intellectual Capital)?4
Intellectual Capital Classification5

Existing theories of IC measurement8

Organizational performance 11

Value creation 11

VALUE-CREATION MODELS12

counterpane IN THE LITERATURE18

HYPOTHESIS19

REFERENCES20

INTRODUCTION
The importance of financial assets in the determination of a companys market place is decreasing fast and it is equally recognised that non-financial (or intangible) assets (IA) are at once the main drivers of performance and market value.
Wealth and growth in todays economy are primarily operate by intangible (intellectual) assets. The rise of new economy has highlighted the situation that the value created depends far slight on their physical assets than on their intangible ones. These assets, often described as intellectual capital, are being recognised as the foundation of individual, organizational and subject field competitiveness in the twenty-first century (Wigg, 1997; Bounfour and Edvinsson, 2005). As notice by Pike et al.



(2002:659), as the business society is developed, the break step in value creation has ascended an intellectual staircase.
The latest surveys confirm the fact that nowadays that one terzetto of all the effected investment solutions is based on the live Intangible Assets, and that the decisions made on the basis of IA allow them to charter a more accurate prediction of income and profitability of a company in the future, and, hence, the companys value for the shareholders.
However, comparatively little is known about how intellectual capital in reality affects a firms performance. Given the highly colonial and ambiguous nature of intellectual capital, this is hardly surprising. Even less is known about the impact and implications of intellectual capital for innovative...If you involve to get a full essay, order it on our website: Orderessay



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