Intellectual capital of an enterprise: current tendencies in evaluation and management

Abstract

The article contains results of the systemic study of intellectual capital (IC) at enterprise level. The analysis covers evolution of the manning of the notion “intellectual capital", IC structure, approaches to IC evaluation and strategies for IC management at enterprise level. An operative definition and structuring of IC, an effective program for IC management at enterprise level, based on the results is its components evaluation, are proposed. A model for IC management at enterprise level is constructed.

IC is defined as structured competencies and skills that have capabilities for development and value creation. IC of an enterprise covers personnel’s qualifications, experiences, motivations and competencies, technologies and communication channels, capable for creating value added and competitive advantages at the market. An enterprise striving to develop its IC makes heavy investments in internal R&7D and training. The market capitalization of this enterprise will be higher than its value in the accounts. The IC carriers at an enterprise are its personnel, organization components and clients; IC is, accordingly, structured as human, organization and client capitals.

The central idea of the guidelines for IC management at enterprise level is in creating a system for management of its intellectual assets, clear for enterprise managers. Intellectual assests are an integral component in creating value added. They, therefore, require effective management like any other category of assets. An attempt to manage IC separately from the other assets will decrease the overall management performance at an enterprise.

Tobin’s Q ratio is proposed for IC evaluation at enterprise level. When the enterprise's value is considerably higher than the value of its tangible assets, it means that its intangible assets are properly valuated. Tobin’s Q ratio is high and tends to increase at successful enterprises. Its high value is an evidence of correct measurement of economic effects from innovations and sales at the early phase of the innovation cycle.