Intellectual capital - source of competitiveness Online publication date: Thu, 31-Mar-2016
by Ramona Diana Leon
International Journal of Learning and Intellectual Capital (IJLIC), Vol. 13, No. 2/3, 2016
Abstract: Although there are some remarkable attempts of measuring a company's IC, these are either reflecting the current stage of development or they are highlighting an average performance. Besides, they overlook the fact that a firm's competitiveness depends on competitors' actions. Therefore, we aim to develop a benchmarking tool capable of capturing a company's competitive position and future evolution, based on its IC efficiency. We create a composite index, entitled Competitiveness Intellectual Capital Index (CICI), for 20 Romanian firms listed on BSE. The results of our longitudinal study highlight that a firm is competitive only when it manages its knowledge assets more efficiently than its competitors. By using CICI, managers can obtain a complete image on what's happening in the environment; they can notice where do they stand (compared with their direct and indirect competitors); they can monitor change and develop future strategies. Therefore, it may serve as a managerial early warning system.
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