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The intellectual capital impact on Polish construction companies during the transformation period

The intellectual capital impact on Polish construction companies during the transformation period Purpose – The different models have been used in recent intellectual capital (IC) studies to understand better the outcome of company intangible asset components. The purpose of this paper is to develop and apply the index of IC of construction companies in relation to the growth of their net profit. Design/methodology/approach – Evaluation of the relationship between an IC index and company net profit employs a scoring method of evaluation of individual components of IC, which include human capital, investment capital, process capital, relations capital and management styles. The correlation method, based on rank correlation index, has been used to calculate the strength and character of the relationships. Findings – A quantitative method of evaluation of qualitative components of IC has been developed as well as a way of finding a relationship between the quality of IC and the growth of net profit earned by a company. The obtained findings support the hypothesis: the higher the value of IC, the greater the net profit growth. Research limitations/implications – The paper covers the procedure of measuring IC, determination of its effect on company results and creating IC in the context of long‐term competitiveness. Practical implications – The method can be applied by construction companies in order to determine the value of intellectual assets and to assess how they influence profit growth. Originality/value – The solutions presented in the paper provide an approach to qualitative assessment of intellectual assets, in the strategic and universal aspect. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Human Resource Costing & Accounting Emerald Publishing

The intellectual capital impact on Polish construction companies during the transformation period

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Publisher
Emerald Publishing
Copyright
Copyright © 2009 Emerald Group Publishing Limited. All rights reserved.
ISSN
1401-338X
DOI
10.1108/14013380910995502
Publisher site
See Article on Publisher Site

Abstract

Purpose – The different models have been used in recent intellectual capital (IC) studies to understand better the outcome of company intangible asset components. The purpose of this paper is to develop and apply the index of IC of construction companies in relation to the growth of their net profit. Design/methodology/approach – Evaluation of the relationship between an IC index and company net profit employs a scoring method of evaluation of individual components of IC, which include human capital, investment capital, process capital, relations capital and management styles. The correlation method, based on rank correlation index, has been used to calculate the strength and character of the relationships. Findings – A quantitative method of evaluation of qualitative components of IC has been developed as well as a way of finding a relationship between the quality of IC and the growth of net profit earned by a company. The obtained findings support the hypothesis: the higher the value of IC, the greater the net profit growth. Research limitations/implications – The paper covers the procedure of measuring IC, determination of its effect on company results and creating IC in the context of long‐term competitiveness. Practical implications – The method can be applied by construction companies in order to determine the value of intellectual assets and to assess how they influence profit growth. Originality/value – The solutions presented in the paper provide an approach to qualitative assessment of intellectual assets, in the strategic and universal aspect.

Journal

Journal of Human Resource Costing & AccountingEmerald Publishing

Published: Sep 4, 2009

Keywords: Intellectual capital; Construction industry; Profit; Intangible assets; Poland

References