Title: An integrative taxonomy of intellectual capital: measuring the stock and flow of intellectual capital components in the firm

Authors: William H.A. Johnson

Addresses: Management Science Department, Schulich School of Business, York University, 4700 Keele Street, Toronto, Ontario M3J 1P3, Canada

Abstract: Building on the resource-based view of the firm, an intellectual capital framework is suggested to identify and measure important resources that may provide sustainable competitive advantage. The difficulty of measuring and managing the elements of intellectual capital is a result of management|s inherent tendency towards over-dependence on financial measures of performance. Typically, however, the intellectual capital assets of the firm are intangible and not easily amenable to financial measures as benchmarks. In attempting to operationalise the concept, the paper begins by developing an integrative taxonomy of intellectual capital based on recent literature. Each element of intellectual capital is then further developed by examining the various types of intangible assets that embody it. Using a software firm as an example, potential quantitative and qualitative indicators of the stock of intellectual capital within the firm are given. Direction towards measuring flows as indicators of intellectual capital strength is discussed.

Keywords: intellectual capital components; conceptual framework; balanced scorecard approach to intangible assets valuation; resource-based strategy.

DOI: 10.1504/IJTM.1999.002788

International Journal of Technology Management, 1999 Vol.18 No.5/6/7/8, pp.562-575

Published online: 06 Jul 2003 *

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