Measuring intellectual capital efficiency: Going beyond the VAIC model

Document Type

Book Chapter

Publication Title

Research Handbook on Intellectual Capital and Business

Publisher

Edward Elgar Publishing

School

School of Business and Law

RAS ID

43304

Comments

Nadeem, M., & Zaman, R. (2021). Measuring intellectual capital efficiency: going beyond the VAIC model. In Research Handbook on Intellectual Capital and Business. Edward Elgar Publishing.

https://doi.org/10.4337/9781785365324

Abstract

With the shift in world’s economy from mainly physical-asset-based to a more knowledge-based one, intellectual capital or intangible assets have become key to firm’s value creation for multiple stakeholders. This new trend makes the measurement and management of intellectual capital an important issue for organisations. The academic scholarship has made enormous progress on this front by introducing several models to measure intellectual capital – one such model is the Value Added Intellectual Coefficient (VAIC). This chapter reviews the existing literature on the VAIC model, progress made towards overcoming its criticism, and then provides insights into a broader concept of value creation and argues why future scholarship should focus on developing a model that should cater for competing interests from multiple stakeholders.

DOI

10.4337/9781785365324

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