Intellectual Capital and Competitive Advantage: An Analysis of the Biotechnology Industry
Intellectual capital measurement is a central aspect of knowledge management. The measurement and the evaluation of intangible assets play a key role in allowing an effective management of these assets as sources of competitiveness. For these reasons, managers and practitioners need conceptual and analytical tools taking into account the unique characteristics and economic significance of Intellectual Capital. Following this lead, we propose an efficiency and productivity analysis of Intellectual Capital, as a determinant factor of the company competitive advantage. The analysis is carried out by means of Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI). These techniques identify Bests Practice companies that have accomplished competitive advantage implementing successful strategies of Intellectual Capital management, and offer to inefficient companies development paths by means of benchmarking. The proposed methodology is employed on the Biotechnology industry in the period 2007-2010.
[1] R. Costa, "Assessing Intellectual Capital efficiency and productivity: an
application to the Italian yacht manufacturing sector," Expert Systems
with Applications, vol. 39, pp. 7255-7261, 2012.
[2] G. Capece, and R. Costa, "The new neighbourhood in the internet era:
network communities serving local communities," Behaviour and
Information Technology, doi: 10.1080/0144929X.2011.610825, 2011.
[3] B. Lev, Intangible assets: values, Measures and Risk, Oxford
Management Readers, 2003.
[4] Commission Of The European Communities, Study on the Measurement
of Intangible Assets and Associated Reporting Practices, April 2003.
[5] Y.-F. Wen, "An effectiveness measurement model for knowledge
management" Knowledge-Based Systems, vol. 22, pp. 363-367, 2009.
[6] K. E. Sveiby, Methods for Measuring Intangible Assets, available from
http://www.sveiby.com/articles/IntangibleMethods.htm, 2001-2010.
[7] A. Calabrese, "Service productivity and service quality: A necessary
trade-off?" International Journal of Production Economics, vol. 135, pp.
800-812, 2012.
[8] A. Calabrese, and F. Scoglio, "Reframing the past: a new approach in
service quality assessment" Total Quality Management & Business
Excellence, DOI: 10.1080/14783363.2012.733259, 2012.
[9] D. Campisi, and R. Costa, "A DEA Based Method to Enhance
Intellectual Capital Management", Knowledge and Process
Management, vol. 15, no. 3, pp. 170-183, 2008.
[10] J.C. Spender, and B. Marr, "How a knowledge-based approach might
illuminate the notion of human capital and its measurement" Expert
Systems with Applications, vol. 30, pp. 265-271, 2006.
[11] N. Bontis, "Managing organizational knowledge by diagnosing
intellectual capital, framing and advancing the state of the field",
International Journal of Technology Management, vol. 18, nos. 5-8, pp.
433-62, 1999
[12] S. Zambon, Study on the Measurement of Intangible Assets and
Associated Reporting Practices, Brussels: Official Study prepared for
the Commission of the European Communities, 2003.
[13] A. Calabrese, R. Costa, T. Menichini, and F. Rosati , "A positioning
matrix to assess and to develop CSR strategies" World Academy of
Science, Engineering and Technology, vol. 69, pp. 1352-1358, 2012.
[14] R. Costa, and T. Menechini, " A multidimensional approach for CSR
assessment: the importance of the stakeholder perception" Expert
Systems with Applications, vol. 40, no. 1, pp. 150-161, 2013.
[15] R. Costa, and S. Evangelista, "An AHP approach to assess brand
intangible assets" Measuring Business Excellence, vol. 12, no. 2, pp. 68-
78, 2008.
[16] G. Capece, and R. Costa., " Measuring knowledge creation in Virtual
Teams through the Social Network Analysis" Knowledge Management
Research & Practice, vol. 7, no. 4, pp. 329-336, 2009.
[17] T. Wu, H. Tsai, Cheng K., and Lai M., "Assessment of intellectual
capital management in Taiwanese IC design companies: using DEA and
the Malmquist productivity index", R&D Management, vol. 36, no.5, pp.
531-545, 2006.
[18] W. M. Lu, W. K. Wang, W. T. Tung, and F. Lin, "Capability and
efficiency of intellectual capital: The case of fabless companies in
Taiwan", Expert Systems with Applications, vol. 37, pp. 546-555, 2010.
[19] W. Y. Wu, M. L. Chang, and C. W. Chen, "Promoting innovation
through the accumulation of intellectual capital, social capital, and
entrepreneurial orientation", R&D Management, vol. 38, no. 3, pp. 265-
277, 2008.
[20] A. Charnes, W. W. Cooper, and E. Rhodes, "Measuring the efficiency of
decision making units", European Journal of Operational Research,
vol. 2, no. 4 , pp. 429-444, 1978.
[21] R. D. Banker, A. Charnes, and W. W. Cooper, "Some models for
estimating technical and scale inefficiencies in Data Envelopment
Analysis", Management Science, vol. 30, pp. 1078-1092, 1984.
[22] T. J. Coelli, D. S. Prasada Rao, G. E. Battese, An introduction to
efficiency and productivity analysis, Boston, Kluwer, 1998
[23] S. Grosskopf, Efficiency and Productivity. In: H.O. Fried, C.A.K.
Lovell, and S.S. Schmidt, eds., The Measurement of Productive
Efficiency, New York, Oxford University Press, 1993.
[24] R. Fare, S. Grosskopf, M. Norris, and Z. Zhang, Productivity growth,
technical change and efficiency change in industrialized countries,
American Economic Review, vol. 84, no. 1, pp 66-83, 1994.
[25] Commission of the European Communities, The EU Industrial R&S
Investment SCOREBOARDS, 2007-2010, available at
http://iri.jrc.ec.europa.eu.
[26] H. C. Huang, M. C. Lai, and T. H. Lin, "Aligning intangible assets to
innovation in biopharmaceutical industry", Expert Systems with
Applications, vol. 38, pp. 3827-3834, 2012.
[27] M. A. Sastre Castillo, and I. Danvila del Valle, "Human capital and
sustainable competitive advantage: an analysis of the relationship
between training and performance", International Entrepreneurship and
Management Journal, vol. 5, pp. 139-163, 2009.
[28] G. Capece, D. Campisi, "User satisfaction affecting the acceptance of an
e-learning platform as a mean for the development of the human
capital", Behaviour & Information Technology, DOI:
10.1080/0144929X.2011.630417, 2011.
[1] R. Costa, "Assessing Intellectual Capital efficiency and productivity: an
application to the Italian yacht manufacturing sector," Expert Systems
with Applications, vol. 39, pp. 7255-7261, 2012.
[2] G. Capece, and R. Costa, "The new neighbourhood in the internet era:
network communities serving local communities," Behaviour and
Information Technology, doi: 10.1080/0144929X.2011.610825, 2011.
[3] B. Lev, Intangible assets: values, Measures and Risk, Oxford
Management Readers, 2003.
[4] Commission Of The European Communities, Study on the Measurement
of Intangible Assets and Associated Reporting Practices, April 2003.
[5] Y.-F. Wen, "An effectiveness measurement model for knowledge
management" Knowledge-Based Systems, vol. 22, pp. 363-367, 2009.
[6] K. E. Sveiby, Methods for Measuring Intangible Assets, available from
http://www.sveiby.com/articles/IntangibleMethods.htm, 2001-2010.
[7] A. Calabrese, "Service productivity and service quality: A necessary
trade-off?" International Journal of Production Economics, vol. 135, pp.
800-812, 2012.
[8] A. Calabrese, and F. Scoglio, "Reframing the past: a new approach in
service quality assessment" Total Quality Management & Business
Excellence, DOI: 10.1080/14783363.2012.733259, 2012.
[9] D. Campisi, and R. Costa, "A DEA Based Method to Enhance
Intellectual Capital Management", Knowledge and Process
Management, vol. 15, no. 3, pp. 170-183, 2008.
[10] J.C. Spender, and B. Marr, "How a knowledge-based approach might
illuminate the notion of human capital and its measurement" Expert
Systems with Applications, vol. 30, pp. 265-271, 2006.
[11] N. Bontis, "Managing organizational knowledge by diagnosing
intellectual capital, framing and advancing the state of the field",
International Journal of Technology Management, vol. 18, nos. 5-8, pp.
433-62, 1999
[12] S. Zambon, Study on the Measurement of Intangible Assets and
Associated Reporting Practices, Brussels: Official Study prepared for
the Commission of the European Communities, 2003.
[13] A. Calabrese, R. Costa, T. Menichini, and F. Rosati , "A positioning
matrix to assess and to develop CSR strategies" World Academy of
Science, Engineering and Technology, vol. 69, pp. 1352-1358, 2012.
[14] R. Costa, and T. Menechini, " A multidimensional approach for CSR
assessment: the importance of the stakeholder perception" Expert
Systems with Applications, vol. 40, no. 1, pp. 150-161, 2013.
[15] R. Costa, and S. Evangelista, "An AHP approach to assess brand
intangible assets" Measuring Business Excellence, vol. 12, no. 2, pp. 68-
78, 2008.
[16] G. Capece, and R. Costa., " Measuring knowledge creation in Virtual
Teams through the Social Network Analysis" Knowledge Management
Research & Practice, vol. 7, no. 4, pp. 329-336, 2009.
[17] T. Wu, H. Tsai, Cheng K., and Lai M., "Assessment of intellectual
capital management in Taiwanese IC design companies: using DEA and
the Malmquist productivity index", R&D Management, vol. 36, no.5, pp.
531-545, 2006.
[18] W. M. Lu, W. K. Wang, W. T. Tung, and F. Lin, "Capability and
efficiency of intellectual capital: The case of fabless companies in
Taiwan", Expert Systems with Applications, vol. 37, pp. 546-555, 2010.
[19] W. Y. Wu, M. L. Chang, and C. W. Chen, "Promoting innovation
through the accumulation of intellectual capital, social capital, and
entrepreneurial orientation", R&D Management, vol. 38, no. 3, pp. 265-
277, 2008.
[20] A. Charnes, W. W. Cooper, and E. Rhodes, "Measuring the efficiency of
decision making units", European Journal of Operational Research,
vol. 2, no. 4 , pp. 429-444, 1978.
[21] R. D. Banker, A. Charnes, and W. W. Cooper, "Some models for
estimating technical and scale inefficiencies in Data Envelopment
Analysis", Management Science, vol. 30, pp. 1078-1092, 1984.
[22] T. J. Coelli, D. S. Prasada Rao, G. E. Battese, An introduction to
efficiency and productivity analysis, Boston, Kluwer, 1998
[23] S. Grosskopf, Efficiency and Productivity. In: H.O. Fried, C.A.K.
Lovell, and S.S. Schmidt, eds., The Measurement of Productive
Efficiency, New York, Oxford University Press, 1993.
[24] R. Fare, S. Grosskopf, M. Norris, and Z. Zhang, Productivity growth,
technical change and efficiency change in industrialized countries,
American Economic Review, vol. 84, no. 1, pp 66-83, 1994.
[25] Commission of the European Communities, The EU Industrial R&S
Investment SCOREBOARDS, 2007-2010, available at
http://iri.jrc.ec.europa.eu.
[26] H. C. Huang, M. C. Lai, and T. H. Lin, "Aligning intangible assets to
innovation in biopharmaceutical industry", Expert Systems with
Applications, vol. 38, pp. 3827-3834, 2012.
[27] M. A. Sastre Castillo, and I. Danvila del Valle, "Human capital and
sustainable competitive advantage: an analysis of the relationship
between training and performance", International Entrepreneurship and
Management Journal, vol. 5, pp. 139-163, 2009.
[28] G. Capece, D. Campisi, "User satisfaction affecting the acceptance of an
e-learning platform as a mean for the development of the human
capital", Behaviour & Information Technology, DOI:
10.1080/0144929X.2011.630417, 2011.
@article{"International Journal of Business, Human and Social Sciences:56473", author = "Campisi Domenico and Costa Roberta", title = "Intellectual Capital and Competitive Advantage: An Analysis of the Biotechnology Industry", abstract = "Intellectual capital measurement is a central aspect of knowledge management. The measurement and the evaluation of intangible assets play a key role in allowing an effective management of these assets as sources of competitiveness. For these reasons, managers and practitioners need conceptual and analytical tools taking into account the unique characteristics and economic significance of Intellectual Capital. Following this lead, we propose an efficiency and productivity analysis of Intellectual Capital, as a determinant factor of the company competitive advantage. The analysis is carried out by means of Data Envelopment Analysis (DEA) and Malmquist Productivity Index (MPI). These techniques identify Bests Practice companies that have accomplished competitive advantage implementing successful strategies of Intellectual Capital management, and offer to inefficient companies development paths by means of benchmarking. The proposed methodology is employed on the Biotechnology industry in the period 2007-2010.
", keywords = "Data Envelopment Analysis, Innovation, Intangible
assets, Intellectual Capital, Malmquist Productivity Index.", volume = "6", number = "11", pages = "3079-6", }
