bluuebunny/crossref_metadata_2025 huggingface dataset:
A quantitative analysis of the characteristics of rapid‐growth firms and their entrepreneurs in China
Authors: Zhang Yuli , Yang Xiaofei , Ma Fengling
Published: November 2008

Purpose

This study aims to compare rapid‐growth companies with slow‐growth ones in order to provide fresh insights into the attributes of Chinese rapid‐growth companies through an integrated research framework, which was adapted from the framework proposed by Wiklund and by Barringer.

Design/methodology/approach

To obtain data for analysis, the research selected the top 30 rapid‐growth firms and the bottom 30 slow‐growth firms from a data bank which contains complete financial data of 533 firms from 2001 to 2003. All data concerning rapid‐growth were coded either one or zero, and were analyzed by Fisher's Exact Test to find out the frequency of important growth variables.

Findings

It is found that the major differences between rapid‐growth and slow‐growth firms lie in different favorite firm resources and capacities, task environment, and entrepreneurial strategies. They can create greater value for success with certain entrepreneurs, and might spur those entrepreneurs to push their firms onto a rapid growth road. In addition, the variable of creating unique value emerges as a strong predictor of rapid growth. Entrepreneur orientation strategy is not found to be significantly facilitating rapid growth. This illustrates that all growth companies value highly entrepreneurship‐oriented strategy.

Practical implications

These research findings confirm that growth is not a random event and that entrepreneurs are not necessarily natural. These research findings will promote entrepreneurship education and entrepreneurship in China.

Originality/value

There are two originalities in this research. First, the authors developed a new integrated framework based on previous research achievements. Second, it is the first empirical study concerning company growth variables in China.
The impacts of external factors on the growth of Chinese entrepreneurial enterprises
Authors: Zhang Yanfeng , Si Chunlin
Published: November 2008

Purpose

The purpose of this paper is to explore the key external factors that are impacting on the performance of Chinese entrepreneurial enterprise (EE).

Design/methodology/approach

A linear regression model was developed that comprised three types of organisations(government, university and R&D institute, agency, financial institution) and three kinds of environmental factors(legal and institutional environment, culture, geographic location) which greatly influence Chinese venture enterprises growth. The model was validated using 91 responses obtained through a questionnaire survey carried out in Shanghai, Zhejiang, Jiangsu and Fujian Province of China.

Findings

Evidence suggests that a fine relationship with a financial organisation positively impacts on the growth of EEs and a close relationship with government shows a disadvantageous impact on the EE's growth. The significant influence of environmental factors appeared to come from entrepreneurial culture and atmosphere.

Practical implications

The findings suggest that Chinese EEs need more favorable financial support. And they also need to have more entrepreneurial learning in a good entrepreneurial culture and atmosphere. Chinese governmental departments should adjust their strategy and means to motivate EEs, not only to give them favourable policy and support but also to improve their competitive power.

Originality/value

The paper highlights the external factors which can significantly affect the growth of Chinese EEs and is, therefore, of practical use for Chinese EEs and support agencies in China. The analysis also offers a more comprehensive understanding about Chinese EEs' development context.
Local government's “black box” in small and medium‐sized private enterprises' trans‐ownership M&A failure
Authors: Wang Haisu , Han Gang
Published: November 2008

Purpose

This paper aims to examine the reasons for small and medium sized private enterprises' (SMPE) trans‐ownership M&A failure, with particular focus on the local government behavior in the multi‐property claimant environment.

Design/methodology/approach

Using evidence from two typical cases of private enterprises' trans‐ownership M&A failure, the study adopts a multi‐method approach to illuminating the important reason.

Findings

The findings show that the alienation of local government is the most important reason for the failure of M&As and this has more to do with the economic and political gains of some individuals or groups in local governments than the ideology prejudice of local governments.

Practical implications

The paper suggests that it is necessary for SMPEs not only to look into target corporation but also the local government, when they prepare to engage in trans‐ownership M&A activities.

Originality/value

The paper explores the alienation of local government, which largely results in SMPEs' trans‐ownership M&A failure in China.
Technological entrepreneurship and policy environment: a case of China
Authors: Zhang Gang , Peng Xuebing , Li Jun
Published: November 2008

Purpose

This study aims to better understand the level of China's regional technological entrepreneurship (TE) and the impact of entrepreneurship policy on TE through an integrated research framework.

Design/methodology/approach

The paper uses factor analysis and regression analysis to analyse regional TE and entrepreneurship policy with the data of 30 provinces in China in 2003 and 2004.

Findings

The research finds that there are regional variations in the level of technological entrepreneurship in China and that regional entrepreneurship policy has considerable impact on technological entrepreneurship activity. Furthermore, a holistic rather than a fragmented policy is needed to improve the level of regional technological entrepreneurship activity.

Practical implications

The research findings are valuable for policy makers who are responsible for promoting technological entrepreneurship activity and for entrepreneurs who need to be aware of opportunities as a result of entrepreneurship policy.

Originality/value

A new integrated framework is developed for empirical analysis of technological entrepreneurship in China.
The impact of higher education on entrepreneurial intentions of university students in China
Authors: Wu Sizong , Wu Lingfei
Published: November 2008

Purpose

The aim of this article is to investigate the relationship between Chinese university students' higher educational background and their entrepreneurial intentions.

Design/methodology/approach

The TPB model was adopted and tested for the formation of Chinese university students' entrepreneurial intentions using structural equation modeling. Data were collected from students of Tongji University in Shanghai, China.

Findings

The main results of this empirical research suggest that diversity of educational background offers plausible explanations on the difference of entrepreneurial intentions of Chinese university students. Higher educational institutions should develop more flexible approaches with focus on different groups of students in accordance with their various educational backgrounds.

Practical implications

In response to the change of graduate labour market and the quest for sustainable competitive advantage in China, higher educational institutions have to integrate the change of mindset, skills and abilities about entrepreneurship in their general academic education in order to nurture university students' entrepreneurial intentions in China.

Originality/value

The paper provides comprehensive empirical evidence about the impact of higher education on entrepreneurial intentions of university students in mainland China and thus fills an important gap in the entrepreneurship literature.
From tradition to modern
Authors: Anderson Alistair R. , Yiu‐chung Lee Edward
Published: November 2008

Purpose

This article aims to examine one aspect of Chinese culture, guanxi. Guanxi, “special relationships” has long been employed to facilitate business in China. The authors ask whether this is likely to continue in the rapidly changing environment. China's long history of insularity has created a culture and business environment considered to be uniquely based on Confucian values. Yet in the last couple of decades China has opened its doors to globalisation. These forces, in conjunction with what many see as Confucian dynamism of Chinese entrepreneurship, have generated economic growth levels in excess of 11 per cent per annum. This blending of the old and the new raises questions about how practices may be changing.

Design/methodology/approach

The authors employed a survey of two groups; middle managers in Hong Kong and young middle class in mainland China. These groups represent the modern, Hong Kong as westernised; the old, but with new perspectives, the affluent middle classes of present day China. Open‐ended questions about perceptions of understanding and use of guanxi were asked.

Findings

The research finds many contrasts between the respondent groups. The Hong Kong respondents did not really understand guanxi, but still thought it important in China. The mainland group both understood and used guanxi, but similarly to the Hong Kong group, did not like it or enjoy its use. Both groups saw a diminishing application of guanxi as China's regulatory and market environment improves.

Originality/value

The paper establishes that guanxi persists and may remain essential in China. However guanxi will work in conjunction with markets and regulations, rather than as a replacement.
Networking and innovation in SMEs: evidence from Guangdong Province, China
Authors: Xu Zongling , Lin Jiali , Lin Danming
Published: November 2008

Purpose

This paper aims to investigate structural characteristics of a business network comprising small and medium‐sized enterprises (SMEs), and to explore the relationships between such network characteristics and innovative capabilities of the participating firms.

Design/methodology/approach

This paper adopts a survey approach and conducts empirical analysis by drawing data from 92 firms operating in the packaging and printing industry in Shantou City, Guangdong Province.

Findings

In relation to the participating firms' innovative capabilities, density, reciprocity and multiplicity of the business network are figured out as factors with positive association, while hypotheses concerning intensity, non‐redundancy and betweenness of the network are not supported.

Research limitations/implications

The authors only conducted a survey in a single industry in one location. Thus the extent to which the results of this study can be generalized remains to be further investigated.

Practical implications

Small and medium‐sized enterprises can enhance their innovative capability by understanding and leveraging the structure of the business network in which they participate.

Originality/value

This paper sheds additional insights to the relationship between a business network and firms' innovative capabilities in a Chinese context.
Entrepreneurship education in China: a case study approach
Authors: Millman Cindy , Matlay Harry , Liu Fan
Published: November 2008

Purpose

This paper aims to provide an overview of entrepreneurship education in the wider context of the Chinese educational system in transition and raise pertinent questions regarding its direction and future development.

Design/methodology/approach

A case study approach is used to provide an in‐depth analysis of the challenges and outcomes of the “Know about your business” (KAB) programme initiated by the International Labour Organisation and piloted at the China Youth University for Political Sciences in Beijing.

Findings

The evaluation of the KAB pilot programme showed that it proved largely successful: 43.9 per cent of participating students were very satisfied with it, 52.6 per cent claimed to be satisfied and only 3.5 per cent were not content with it. Student feedback highlighted a small number of problems with this programme, including issues relating to a lack of market research knowledge, limited contact hours, a shortage of business plan models and difficulties in managing related team work.

Originality/value

The results of the pilot programme could be used to further improve and develop entrepreneurship education in general and the KAB programme in particular, with a view to implement it more widely in selective business schools across China.
In pursuit of technological innovation
Authors: Ding Xuedong , Li Jun , Wang Jia
Published: November 2008

Purpose

This paper intends to examine the change of R&D fiscal policies in China since 1978 and its impact on China's drive to become an innovation‐oriented country.

Design/methodology/approach

This paper adopts an archive approach and undertakes an overview of the policy changes and their implications.

Findings

It is found that policy changes have gradually made enterprises the focal point of the national innovation system and that correspondingly a new financial and fiscal mechanism has been created to create incentives for innovation in firms.

Originality/value

This paper provides a comprehensive overview of the changing financial and fiscal policies in support of technological innovation in China.
Benchmarking practices of quality function deployment: results from a field study
Authors: Augusto Cauchick Miguel Paulo , Carnevalli José Antonio
Published: November 2008

Purpose

This paper continues the analysis of the data collected in a survey of quality function deployment (QFD) carried out in Brazil, and deepens the study by carrying out interviews at some of the companies which participated in the survey to identify best practices on QFD application.

Design/methodology/approach

To analyze the data collected in a survey of QFD and interviews, eight exemplary criteria based on the QFD literature were considered. The paper then presents and discusses best practices in QFD application.

Findings

The results of analyzing the interviews showed that there were exemplary aspects in the use of the method and the key points in the QFD implementation that should be considered were related to: support from upper management, carrying out training, creating the team, frequency and length of meetings, and creating a conceptual model, among other aspects.

Research limitations/implications

It is important to stress that the importance of some of these exemplary aspects varies with the type of company and the product developed with QFD, and could be less important for other products and industries.

Practical implications

The results showed that there were key points in the QFD implementation that should be considered depending on type of company and the product.

Originality/value

The key points in the QFD implementation identified in this paper may be useful to QFD users and academics.
Relative balanced measurement of trainee civil servants: a case example from Greece
Authors: Vasilakis Athanasios G.
Published: November 2008

Purpose

The purpose of this paper is to present the concept of relative balanced measurement as benchmarking tool for public training centers and public services.

Design/methodology/approach

Borrowing the concept of balanced scorecard we have modified the perspectives to reflect the special circumstances of Civil Service. Each perspective is assigned a number of key performance indicators, which are ranked in a Linker scale, in order to create rankings for each perspective. Then the rankings of each perspective are averaged in order to create a unique final ranking, which sets the performance frontier.

Findings

The real case example for Civil Servants Trainee's Work Unit (TWU) validates the relative balanced measurement conceptual framework.

Research limitations/implications

One of the limitations of this paper is that the conclusion is drawn from a single Training Center at Greek Ministry of Economy and Finance and a limited number of TWUs. A linked research should follow, with field researches for trainees and supervisors of the trainees (Heads of Trainee Work Units) in order to enrich and validate further the concept.

Practical implications

In the proposed concept the establishment of performance frontier, consisting of the best performing TWUs, could be used as a guide of inefficient TWU compare to the other in order to undertake their own improvements.

Originality/value

This paper provides a new concept for relative balance measurement of TWU of Public Services Training Centers. No such concept or method has been proposed and implemented to date.
Provider‐perceived dimensions of total quality management in healthcare
Authors: Duggirala Mayuri , Rajendran Chandrasekharan , Anantharaman R.N.
Published: November 2008

Purpose

The purpose of this paper is to highlight key dimensions of provider‐perceived total quality management (TQM) in the healthcare sector in India. Further, the impact of the dimensions of provider perceived TQM on hospital performance is examined.

Design/methodology/approach

A questionnaire has been developed based on an extensive literature review of research in service quality and based on responses of the pilot survey among medical professionals. The instrument thus developed has been examined for its psychometric properties using tests of reliability and validity. Multiple regression analysis has been used to examine the impact of the dimensions of provider‐perceived TQM on hospital performance.

Findings

Findings highlight 14 distinct dimensions of provider‐perceived TQM and the relationships among them. Positive and significant relationships among the dimensions and hospital performance have been found.

Research limitations/implications

Contribution to research on healthcare quality by the development of a comprehensive instrument of provider‐perceived healthcare quality.

Practical implications

This instrument would enable hospitals to examine the quality of care being delivered by them to the patients. Hospital administrators and medical professionals could use this feedback to assess hospital performance, and benchmark their performance against that of other competitive hospitals.

Originality/value

Comprehensive instrument of provider‐perceived healthcare quality
Benchmarking applications in public sector principal‐agent relationships
Authors: Andersen Bjørn , Henriksen Bjørnar , Spjelkavik Ingrid
Published: November 2008

Purpose

The purpose of this paper is to explore the range of benchmarking applications that can be used in a principal‐agent relationship setting often found in the public sector.

Design/methodology/approach

Collection and critical analysis of secondary data from relevant publications addressing applications of benchmarking in the public sector. Extraction of knowledge from several research projects where the authors have been involved in studying and developing benchmarking approaches for different public sector organizations. Induction of new theory about the use of benchmarking in principal‐agent relationships in the public sector, grounded through empirical evidence from case studies.

Findings

A number of new approaches to benchmarking in the public sector have been identified and described, some of which are already used in real life cases, others which need further development before being implemented. All of these can introduce benefits to both principals and agents involved in such benchmarking efforts.

Research limitations/implications

The paper explores benchmarking applications that are almost exclusively relevant in a public sector setting, although some of them might be adapted to certain private sector conditions.

Originality/value

Whereas most work on benchmarking in the public sector tend to view only improvement‐oriented, voluntary benchmarking as relevant and useful, this paper demonstrates how many different imposed benchmarking schemes with other purposes can be useful.
Understanding benchmarking in Egyptian organizations: an empirical analysis
Authors: Magd Hesham A.E.
Published: November 2008

Purpose

The intention of this study is to investigate the state of benchmarking in a variety of organizations in Egypt. More specifically, the study aims to understand the state of benchmarking in Egyptian organizations as well as the driving forces, benefits behind undertaking benchmarking and the reasons for not benchmarking in non‐benchmarking organizations. Also investigates the most important influential factors for effective benchmarking.

Design/methodology/approach

The present study is based upon the results of an empirical research in which the state of benchmarking in Egyptian organizations is studied. Mail surveys carried out on 500 organizations and 45 percent responded.

Findings

Results indicated that the most important reasons for initiating benchmarking are to maintain and increase competitive advantage, increased profitability and achieve continuous improvement. Moreover, the most important benefits derived from benchmarking include improved customer satisfaction and improved response time. Further, top management commitment was found to be an important influential factor for effective benchmarking.

Research limitations/implications

Egyptian managers should be aware of the importance of top management commitment, employee involvement and participation and effective communication for effective benchmarking implementation. Also, benchmarking should be made consistent with organization's strategic direction and the provision of the appropriate resources.

Originality/value

It adds to the body of knowledge in the field of benchmarking in developing countries, with a particular focus on Egypt.
Benchmarking: methods and tools for SME
Authors: Maire Jean‐Luc , Bronet Vincent , Pillet Maurice
Published: November 2008

Purpose

The purpose of this paper is to present a benchmarking process that can assist small to medium‐sized enterprises (SME).

Design/methodology/approach

The paper describes how the steps of a benchmarking process can be positioned with the steps of the plan‐research‐observe‐analyzes‐adapt‐improve cycle (PROAAI) and shows that the tools proposed to carry out these steps are mostly reserved for big companies. We therefore detail a set of tools and methods to assist SMEs in the deployment of the steps of a benchmarking process (observe and analyse steps).

Findings

The tools and methods which are described in this paper especially target the description of the processes (process to be improved and reference process) using the description of the current practices used, and the comparison of these processes leading to suggestions of improvements to carry out on the process to improve.

Research limitations/implications

In this paper, the identification of the subject to be benchmarked is currently based on a description of the differences observed between a reference process and the process to be improved. Our future research is to determine how just one interview could be carried out instead of two.

Practical implications

The methods and tools have been applied in several manufacturing plants at TECUMSEH Europe.

Originality/value

Practical help to a SME to carry out a benchmarking.
Benchmarking in public procurement
Authors: Raymond Jeanette
Published: November 2008

Purpose

This paper investigates the technique of benchmarking to improve the quality of the public procurement process and discusses the importance of benchmarking to overcome perceived weaknesses with these processes. This is followed by a case study of Sri‐Lanka, exploring the difficulties faced by public sector employees in separating the daily business of government from the political influences of its elected leaders.

Design/methodology/approach

Initially the literature review was used to examine the key principles of government procurement and how they could be benchmarked. This formed the theoretical base for the discussion. The case study of Sri‐Lanka has been used very effectively to discuss the experiences of developing countries.

Findings

It is revealed that reform solutions within government procurement systems must include measures that address issues of accountability, transparency, value for money, a professional work force and ethics.

Research limitations/implications

The major limitation of this study is that it relies solely only on the experience of Sri‐Lanka. Perhaps including the experiences of other developing countries such as India, Bangladesh and Indonesia could increase the transference of findings of Sri‐Lanka to these countries as well.

Practical implications

Poor procurement practices hinder sustainable development and negatively impact upon economic growth. Therefore, developing countries need to recognise the importance of the technique of benchmarking to improve the public procurement process.

Originality/value

Provides an effective framework to public sector employees in developing countries to benchmark and overcome weaknesses in the public procurement process.
National intellectual capital: comparison of the Nordic countries
Authors: Yeh‐Yun Lin Carol , Edvinsson Leif
Published: November 2008

Purpose

This study proposes a model to measure national intellectual capital that can be easily replicated for trend analysis. Key dimensions include human capital, market capital, process capital, renewal capital, and financial capital.

Design/methodology/approach

With longitudinal data spanning the period from 1994 to 2005, this study compares the national intellectual capital of 40 countries based on an IC map of 29 indicators.

Findings

The overall intellectual capital ranking of the five Nordic countries is: 1 Sweden, 2 Finland, (3 Switzerland), 4 Denmark, (5 USA), 6 Norway, and 7 Iceland in the 40‐country list.

Practical implications

The results confirm the general perception that the Nordic countries have a high degree of national intellectual capital. The research findings clarify the status of national intellectual capital of the Nordic countries, thereby providing valuable information for stakeholders and policy makers to formulate effective strategies for building sustainable national competitiveness. In order to do this, it is necessary to elaborate on the proposed IC framework and to gather relevant and valid IC indicators.

Originality/value

The results of this study can provide a map for the Nordic countries – and other countries – as they prepare for future challenges, such as those associated with globalization and its implications on potential wealth creation. A deeper study of why and how might be a part of forthcoming studies.
Investigating market value and intellectual capital for S&P 500
Authors: Wang Jui‐Chi
Published: November 2008

Purpose

The purpose of this study is to examine and answer the following research questions: how does the US electronic industry perform from an intellectual capital (IC) perspective? What is the relationship between IC and company market value in the US electronic industry? This study investigated the relationship between IC and company market value in the US Standard & Poor's 500 (US S&P 500) publicly traded electronic companies from 1996 to 2005.

Design/methodology/approach

The Ohlson model theory was reviewed and to form the research models. Secondary data were retrieved from S&P's Compustat for quantitative analysis.

Findings

When applying multiple regression technique to the research hypotheses, there emerges a positive relationship between IC and market value of the company. Apparently, US electronic companies are knowledge intensive and utilize IC to create their market capitalization.

Originality/value

This is one of the first empirical researches that quantitatively examine the market value of US S&P's 500 electronic companies from IC perspective in the long‐term.
Measuring knowledge work: the knowledge work quantification framework
Authors: Ramirez Yuri W. , Steudel Harry J.
Published: November 2008

Purpose

The purpose of this paper is to present the knowledge work (KW) quantification framework – a mathematical model to quantify KW. The framework calculates a knowledge work score (KWS) that positions each worker in the KW continuum.

Design/methodology/approach

The framework states that KW is a continuum and that eight KW dimensions can be used to differentiate between manual and KW. A methodology was developed that follows a series of steps to calculate the KWS. Operational definitions are presented and explained.

Findings

By assigning a knowledge work intensity score to the tasks a worker does, the knowledge work quantification framework (KWQF) calculates the intensity score for the job hence an intensity score for the worker. KWSs are calculated for two example jobs to illustrate the KWQF and the allocation of the jobs in the KW continuum.

Research limitations/implications

Since there have been no previous studies like this, it is difficult to compare results. A larger sample of workers for different work types would provide more data points in the KW continuum. Other limitations are discussed in the paper.

Practical implications

The knowledge worker (KWr) has become the predominant type of worker in today's economy. With most of manual work being researched and optimized, it is in scientifically improving our understanding of the KWr where the opportunities for improving productivity lie.

Originality/value

In the past, the field has lacked a scientific approach and has been studies more in terms of opinions and theories rather than an empirical research frame of mind. This paper is the first attempt to create a methodology that quantifies KW.
The evolving research on intellectual capital
Authors: Pew Tan Hong , Plowman David , Hancock Phil
Published: November 2008

Purpose

The purpose of the paper is to serve as a useful reference for anyone embarking on research into intellectual capital (IC). It provides a succinct summary of the seminal works on this research area.

Design/methodology/approach

The paper reviews the seminal literature arranges it into a chronology of the evolving research into IC.

Findings

The findings show that IC has undergone a number of development stages from definitions, models through to measures and applications of IC to business and management issues.

Research limitations/implications

The review is limited to refereed journals and books published before March 2007.

Practical implications

IC is an area of interest to numerous parties, including shareholders, institutional investors, scholars, policymakers and managers. This paper serves as a useful reference on the stages of development of IC and the applications to business and management issues.

Originality/value

The study of IC has undergone a number of stages, from early conscious awareness efforts, to classification of IC and to the search for appropriate measures of IC. This paper provides a taxonomy on IC research as suggestions about future research directions.
Intellectual capital: definitions, categorization and reporting models
Authors: Keong Choong Kwee
Published: November 2008

Purpose

The purpose of this paper is to develop a conceptual framework that can be used to formalise a reporting model for intellectual capital (IC).

Design/methodology/approach

This paper proposes a reporting model with a formal definition and classifications of IC to analyse and report on the IC generated by a firm.

Findings

This paper demonstrates that the field is maturing to one in which it is possible to analyse existing definitions and classifications of IC to construct a formal body of items that can be considered as IC for use in the study and application of IC.

Practical implications

The paper presents a formal reporting model which can be used generally in the analysis of the IC generated from the production process of a firm.

Originality/value

This study examines the characteristics of items that can be considered as IC in order to provide a formal classification system of IC that can be instilled in a reporting system which can be used generally in any organization that involves the use of IC.
Censoring model for evaluating intellectual capital value drivers
Authors: Cheng Meng‐Yuh , Lin Jer‐Yan , Hsiao Tzy‐Yih , Lin Thomas W.
Published: November 2008

Purpose

The purpose of this paper is to examine the relationship between firms' value drivers and their intellectual capital (IC).

Design/methodology/approach

The health care sector (GICS 35) firms listed in the S&P500 were used to build a research censoring Tobit model by adopting financial data to determine value drivers.

Findings

The results of the study show that innovation capital, customer capital and human capital are significant positive drive factors for firms to create more IC and hence more intangible value. Process capital exerts moderating effects on IC; organizations with greater process capital must raise customer capital to enhance intellectual value.

Originality/value

This is the first empirical study that uses a censoring Tobit model and tests of the association between competitive advantage and the value drivers of firms. This research successfully combines management perspectives with financial data to describe the value drivers of firms.
Valuing human resources: an analytical framework
Authors: Samudhram Ananda , Shanmugam Bala , Lock Teng Low Kevin
Published: November 2008

Purpose

The purpose of this paper is to develop an analytical framework that links the expenditures on human capital to the resulting long‐term benefits, and thus provide a model for reporting human capital on balance sheets. The framework identifies different kinds of accounting treatments for different kinds of human capital related expenses.

Design/methodology/approach

This paper sub‐divides expenditures related to human capital into four categories, based on the expenditure‐long‐term benefits relationships, using a Cartesian axes‐based approach.

Findings

The paper shows that a sub‐class of expenditures occur that are within the control of the organisation and provide economic benefits over several periods. As such, these expenditures can be capitalised. Furthermore, expenditures that do not provide long‐term benefits or result in lower productivity also exist. These need to be addressed by the management.

Research limitations/implications

This model needs to be formally field‐tested.

Practical implications

The analytical framework may be used in practice by managers for analysing the benefits of the different types expenditures on human capital. It can also be used by researchers to analyse the benefits of the expenditures on different types of intellectual capital and financial accounting standard setters to standardise the appropriate accounting treatments for different types of human capital related expenditures.

Originality/value

This is the first study that breaks down the human capital related expenditures into comprehensive categories based on the expenditures‐benefits relationships such that positive and negative intangibles are identified, and examines the financial accounting and strategic managerial accounting implications of both kinds of intangibles.
Differentiation in financial markets: the human capital approach
Authors: Royal Carol , O'Donnell Loretta
Published: November 2008

Purpose

How can organisations and their key stakeholders, including the financial markets, benefit from the increased understanding of the role of intangibles in value creation in listed firms? One response is to challenge the finance industry to create innovative investment products based on analysis of intangibles, including human capital (HC), which can act as a lead indicator of future financial performance. This may require qualitative research specialist expertise in finance houses. The purpose of this paper is to address these issues.

Design/methodology/approach

The paper uses qualitative data from the trading floor of Merrill Lynch in Sydney and Hong Kong, drawing on participatory action research, by the first author. It also draws on field research interview data with biotechnology executives, using a case study approach, by the second author.

Findings

The findings suggest that finance industry may need to move beyond the use of indices and ethical investment screens to more clearly understand the role of intangibles, such as HC, in value creation.

Originality/value

This paper described the evolution of a set of HC analysis models, and applies them to the biotechnology industry. The results indicate that more qualitative information on listed companies can be analysed and interpreted to make the investment process more transparent to all stakeholders, including securities analysts. This may influence other researchers to extend these approaches to improve the quality of intangibles analysis.
Intellectual capital and corporate performance in Indian pharmaceutical industry
Authors: Bharathi Kamath G.
Published: November 2008

Purpose

The purpose of this paper is to study the relationship, if any, between the intellectual capital (IC) components, namely human, structural, and physical capitals with the traditional measures of performance of the company, namely profitability, productivity and market valuation.

Design/methodology/approach

Value added by IC (VAIC™) for top 25 firms in the drug and pharmaceutical industry in India, for a ten‐year period from 1996 to 2006 is estimated. The evaluation is done on the basis of the ranking obtained by each firm in the VAIC index estimated. The analysis of correlation and simple linear multiple regression is done for the set of variables representing the performance of the firm and IC.

Findings

The domestic firms seem to be performing well and efficiently utilizing their IC as seen by the VAIC rankings. The empirical analysis found that the human capital was the one which was seen to have the major impact on the profitability and productivity of the firms over the period of study. Though there is a growing importance and efficiency in the utilization of the intellectual resources in the Indian pharmaceutical industry, the reflection of the same in creating an impact on the financial performance of the industry is seen to be missing in the empirical analysis.

Research limitations/implications

The results suggest that in Indian scenario, the market is under developed and yet to reflect the performance of the firms especially in terms of the efficiency parameters and more so in terms of IC efficiency. The stakeholders still perceive the performance of the firm in terms of tangible assets and less in terms of intangible assets. This opens up vistas for further exploration of the findings to prove/disprove the same in other industries.

Practical implications

The paper has strong theoretical foundations, which have a proven record and applications. The methodology adopted has been research tested. There is an urgent and immediate need that the policy makers and corporate decision makers wake up to the need and start taking up the voluntary disclosures of IC, so that the perception among the stakeholders regarding value creation in the firm may get even more transparent.

Originality/value

This is one of the pioneering and seminal attempts to evaluate the IC and its relationship with the traditional measures of corporate performance in Indian pharmaceutical industry. This paper adds to the existing literature, provides a new dimension of performance measurement for knowledge industries in emerging economies and would evoke further research interests to explore different aspects of IC management and measurement in these economies.
Intellectual capital disclosure trends: Singapore and Sri Lanka
Authors: Abeysekera Indra
Published: November 2008

Purpose

The purpose of this paper is to investigate the intellectual capital (IC) disclosure trends and disclosure category differences of top 20 listed firms in a developing nation, Sri Lanka, and moderately developed nation, Singapore. The paper aims to highlight the differences in IC disclosure practice between developing and developed nations.

Design/methodology/approach

The study investigates the top 20 firms by market capitalization listed on the Colombo stock exchange in 1998‐2000. Using the content analysis method, it reviews the annual reports of these firms to determine IC disclosure trends in Sri Lanka. It then compares these findings with a similar unpublished study undertaken in Singapore during the same period.

Findings

The study identified IC disclosure differences between Sri Lankan and Singapore firms, and suggest reasons for differences from country perspectives. The paper highlights the need for a uniform methodology in intellectual disclosure framework to establish consistent disclosure practices.

Practical implications

This study highlights the need to establish a uniform methodology for financial disclosure under International Financial Reporting Standards that can mobilize globally uniform disclosure IC disclosure practices.

Originality/value

This study offers insights into comparative trends in IC disclosure practices between a moderately developed and a developing country.
Partial abandonment as an exit strategy for troubled IT projects
Authors: Pan Gary
Published: November 2008

Purpose

The purpose of this paper is to conduct a stakeholder analysis to find out what factors contribute to partial abandonment and also to examine stakeholders' roles and role conflicts in a partial abandonment implementation process.

Design/methodology/approach

A case study of a partially abandoned electronic procurement system project is discussed and analyzed within a small‐and‐medium enterprise in Australia. Semi‐structured interviews, on‐site observation and documentation were the data collection method adopted in this study.

Findings

Based on the findings derived from the study, this paper proposes a stakeholder assessment framework of partial abandonment to examine stakeholders' roles and role conflicts in influencing organizational decisions to partially abandon troubled IT projects.

Originality/value

The framework will help both researchers and practitioners to shed light on stakeholder‐related issues of partial abandonment, as it offers the flexibility to accommodate understanding of various causes that may have contributed to the partial abandonment decision.
Communities of enterprise: developing regional SMEs in the knowledge economy
Authors: Mason Cecily , Castleman Tanya , Parker Craig
Published: November 2008

Purpose

This paper proposes the concepts of communities of enterprise (CoEs) and virtual communities of enterprise (VCoEs) to describe business networking patterns in regional areas where there is no central organisational or industry focus and small and medium enterprises dominate the economy.

Design/methodology/approach

Based on analysis of the literature this paper builds on theoretical understandings of knowledge management, clustering and regional development.

Findings

The concept of CoEs is most appropriate for regional areas characterised by many small enterprises in diverse industries. CoEs enhance development of regional clusters by contributing to their intellectual capital, innovation culture, value networks and social capital. The incorporation of information and communication technologies (ICT) creates VCoEs which provide added potential by enabling regions to expand their learning potential through innovation.

Research limitations/implications

This paper provides a conceptual foundation for empirical research into regional network or cluster development using ICT.

Practical implications

VCoEs value creation potential is substantial but only when the socioeconomic elements of regional clusters are understood. The VCoE approach addresses the fact that without an industry focus it can be difficult to engage and link small and medium enterprises (SMEs) from different industries, although this is where the greatest potential for value creation in regional clusters is to be found.

Originality/value

The VCoEs concept specifically addresses the unique requirements of SMEs in regions. It has the potential to provide value for regions in a way few ICT based regional development initiatives have been able to achieve.
Knowledge use in ICT investment decision making of SMEs
Authors: Rantapuska Torsti , Ihanainen Outi
Published: November 2008

Purpose

The purpose of this paper is to discuss how managers use knowledge when making ICT investment decisions. ICT investments are complex processes and also have strategic implications for organizations. The focus of the study is to reveal how the organizational process of knowledge creation affects the individual‐level of decision making and how knowledge conversions between tacit and explicit knowledge occur in this process.

Design/methodology/approach

The data consists of information collected by six semi‐structured interviews from six small‐ or medium‐sized companies. Knowledge use in ICT investment decision making is analyzed qualitatively and found categories of the different decision maker types are presented.

Findings

In ICT investments, there are three contributing factors: problem, product, and provider. The results show significant differences in how the tacit and explicit dimensions of knowledge act by forming a cognitive model of decision‐makers' use of knowledge.

Research limitations/implications

Owing to the qualitative approach, the findings do not show the frequencies of a certain type of a decision maker in the SMEs in general.

Practical implications

To be more effective, the models of ICT investment decision making for SMEs should emphasise the tacit knowledge used in the process.

Originality/value

The paper presents rare empirical findings on how the decision makers in the SME context use knowledge in their ICT investment processes.
IT consultants, salesmanship and the challenges of packaged software selection in SMEs
Authors: Howcroft Debra , Light Ben
Published: November 2008

Purpose

This paper seeks to analyse the process of packaged software selection in a small organization, focussing particularly on the role of IT consultants as intermediaries in the process.

Design/methodology/approach

This is based upon a longitudinal, qualitative field study concerning the adoption of a customer relationship management package in an SME management consultancy.

Findings

The authors illustrate how the process of “salesmanship”, an activity directed by the vendor/consultant and focussed on the interests of senior management, marginalises user needs and ultimately secures the procurement of the software package.

Research limitations/implications

Despite the best intentions the authors lose something of the rich detail of the lived experience of technology in presenting the case study as a linear narrative. Specifically, the authors have been unable to do justice to the complexity of the multifarious ways in which individual perceptions of the project were influenced and shaped by the opinions of others.

Practical implications

Practitioners, particularly those from within SMEs, should be made aware of the ways in which external parties may have a vested interest in steering projects in a particular direction, which may not necessarily align with their own interests.

Originality/value

This study highlights in detail the role of consultants and vendors in software selection processes, an area which has received minimal attention to date. Prior work in this area emphasises the necessary conditions for, and positive outcomes of, appointing external parties in an SME context, with only limited attention being paid to the potential problems such engagements may bring.