Comparative justification on intellectual capital
With the development of computerization and networking capabilities, there is a significantly enhanced opportunity for sharing information and knowledge world-wide. For an organization to survive in these turbulent times, there is a great need for its continuous renewal through the
introduction of new, innovative products and processes that are based on new knowledge. As a result, the management and measurement of intellectual capital have attracted a lot of attention in recent years both in the media and from academia. This paper assesses different methodologies of
intellectual capital measurements, both from a macro valuation standpoint and from the operating perspective. Valuation metrics are suggested and it demonstrates how it is applied to a cross-section of firms. The paper also shows that there is no conceptual framework commonly accepted and
there is a considerable lack of consistency both inter-country and intra-country. This paper has taken three firms from distinct industries and has applied human, relational or structural capital metrics depending on which is the most relevant.