Document Type : Original Article

Authors

1 Department of Industrial Engineering, Yazd University, Yazd, Iran.

2 Department of Industrial Engineering, Tarbiat Modares University, Tehran, Iran.

Abstract

In the age of a knowledge-based economy, identifying, measuring, and managing the intellectual capital (IC) of organizations has become very significant. These depend on identifying the main components of intellectual capital and their relationships. So far, however, no study has been conducted to clarify the interactions among those components or to develop a model for laying out a hierarchy of IC components. There is, indeed, an urgent need to analyze the behavior of IC components so that the corresponding policies may be successfully implemented. This paper aims to prioritize the IC components based on the identified relationships among the IC components with a focus on the banking industry. A literature review was used to identify the 16 most important IC components. At the first stage, the Interpretive Structural Modeling technique was practiced to determine the interrelationships among these components, based on the data gathered from the Export Development Bank of Iran. The interconnections between the components were clarified. At the second stage, the application of Analytic Network Process for the prioritizing of IC components has been demonstrated. MICMAC analysis and classifying them into four categories including the autonomous, driver, dependent, and linkage components regarding their driving and dependence power is a new effort in the field of IC. A hierarchical structure was proposed through leveling of the components. And finally, the importance and priorities of the components are calculated with the help of the fuzzy analytic network process. The adoption of such an ISM-ANP model of IC components in the banking industry would provide insights for managers, decision-makers and policymakers for a better understanding of these components and to focus on the major components while managing their IC in their organizations.

Keywords

Adams, R., Bessant, J., and Phelps, R., (2006). "Innovation management measurement: A review", International Journal of management reviews, vol. 8, no. 1, pp. 21-47.
ahmed haji, a., and mubaraq, s., (2012). "the trends of intellectual capital disclosures: evidence from the nigerian banking sector", journal of Human Resource Costing And Accounting, Vol. 16, No. 3, pp. 184-209.
Al-Musali, M.A.K., and Ismail, K.N.I.K., (2012). "Intellectual capital performance and board characteristics of gcc banks", Gstf Business Review (Gbr), Vol 2,  No. 1, pp. 219-226.
Aminbeidokhti, A., and Darvishkhadem, S., (2012). "A study of effects of intellectual capital on organizational performance: A case study of Keshavarzi Bank Branches in Semnan province of Iran", Management Science Letters, Vol. 2, No. 3, pp. 971-978.
Anatolievna Molodchik, M., Anatolievna Shakina, E., and Barajas, A., (2014). "Metrics for the elements of intellectual capital in an economy driven by knowledge", Journal of Intellectual Capital, Vol. 15, No. 2, pp. 206-226.
Attri, R., Dev, N., and Sharma, V., (2013). "Interpretive structural modelling (ISM) approach: An overview", Research Journal of Management Sciences, Vol. 2, No. 2, Pp. 3-8.
Ax, C., and Marton, J., (2008). "Human capital disclosures and management practices". Journal of Intellectual Capital, Vol. 9, No. 3, pp. 433-455.
Bakar, N.A., and Yusop, H., (2011). "Intellectual capital efficiency: Study on Malaysian banking sectors",   Proceedings Of Asia-Pacific Business Research Conference, pp. 1-9.
Baxter, R., and Matear, S., (2004). "Measuring intangible value in business-to-business buyer–seller relationships: An intellectual capital perspective", Industrial Marketing Management, Vol. 33, No. 6, pp. 491-500.
Beattie, V., and Smith, S.J., (2010). "Human capital, value creation and disclosure", Journal of Human Resource Costing & Accounting, Vol. 14, No. 4, pp. 262-285.
Bianchi Martini, S., Corvino, A., Doni, F., and Rigolini, A., (2016). "Relational capital disclosure, corporate reporting and company performance: evidence from Europe", Journal of intellectual capital, vol. 17, no. 2, pp. 186-217.
Boisot, M., (2002). "The creation and sharing of knowledge", The Strategic Management of Intellectual Capital and Organizational Knowledge, pp. 65-77.
Bontis, N., (1998). "Intellectual capital: An exploratory study that develops measures and models", Management Decision, Vol.36, No. 2, pp. 63-76.
Bontis, N., Crossan, M.M., and Hulland, J., (2002). "Managing An Organizational Learning System By Aligning Stocks And Flows", Journal of Management Studies, Vol. 39, No. 4, pp. 437-469.
Bontis, N., Keow, W.C.C. and Richardson, S., (2000). "Intellectual capital and business performance in Malaysian industries", Journal Of Intellectual Capital, Vol. 1,No. 1, pp. 85-100.
Bozbura, F.T., (2004). "Measurement and application of intellectual capital in Turkey", The Learning Organization, Vol. 11, No. 4/5, pp. 357-367.
Bozbura, F.T., and Beskese, A., (2007). "Prioritization of organizational capital measurement indicators using fuzzy AHP", International Journal of Approximate Reasoning, Vol. 44, No. 2, pp. 124-147.
Bozbura, F.T., Beskese, A., and Kahraman, C., (2007). "Prioritization of human capital measurement indicators using fuzzy Ahp", Expert Systems with Applications, Vol. 32, No. 4, pp. 1100-1112.
Bozzolan, S., Favotto, F., and Ricceri, F., (2003). "Italian annual intellectual capital disclosure: An empirical analysis", Journal of Intellectual Capital, Vol. 4, No. 4, pp. 543-558.
Bueno Campos, E., Salmador, M.P., and Merino, C., (2006). "Towards a model of intellectual capital in public administrations", International Journal of Learning and Intellectual Capital, Vol. 3, No. 3, pp. 214-232.
Cabrita, M.D.R., and Vaz, J.L., (2006). "Intellectual Capital And Value Creation: Evidence From The Portuguese  Banking  Industry", The  Electronic  Journal  of  Knowledge  Management, Vol. 4, No. 1, pp. 11-20.
Campbell, D., and Abdul Rahman, M.R., (2010). "A longitudinal examination of intellectual capital reporting in marks & spencer annual reports, 1978-2008", The British Accounting Review, Vol. 42, No. 1, pp. 56-70.
Canibano, L., Garcia-Ayuso, M., and Sanchez, P., (2000). "Accounting for intangibles: A literature review", Journal of Accounting Literature, Vol. 19, pp. 102-130.
Carlucci, D., (2010). "Evaluating and selecting key performance indicators: An ANP-based model", Measuring Business Excellence, Vol. 14, No. 2, pp. 66-76.
Chang, A.-Y., Hu, K.-J., and Hong, Y.-L., (2013). "An ISM-ANP approach to identifying key agile factors in launching a new product into mass production", International Journal of Production Research, Vol. 51, No. 2, pp. 582-597.
Chen, J., Zhu, Z., and Xie, H.Y., (2004). "Measuring intellectual capital: A new model and empirical study", Journal of Intellectual Capital, Vol. 5, No. 1, pp. 195-212.
Chen, S.-H., Lee, H.-T., and Wu, Y.-F., (2008). "Applying Anp approach to partner selection for strategic alliance", Management Decision, Vol. 46, No. 3, pp. 449-465.
Cohen Kalafut, P., and Low, J., (2001). "The value creation index: Quantifying intangible value", Strategy & Leadership, Vol. 29, No. 5, pp. 9-15.
Cricelli, L., and Grimaldi, M., (2008). "A dynamic view of knowledge and information: a stock and flow based methodology", International Journal of Management and Decision Making, Vol. 9, No. 6, pp. 686-698.
Edvinsson, L., and Malone, M.S., (1997). Intellectual capital: Realizing your company's true value by finding its hidden brainpower, New York: Harper Collins Buiness.
Gogan, M.-L., (2014). "An innovative model for measuring intellectual capital", Procedia-Social and Behavioral Sciences, Vol. 124, pp. 194-199.
Goh, P.C., (2005). "Intellectual capital performance of commercial banks in Malaysia", Journal of Intellectual Capital, Vol.6, No. 3, pp. 385-396.
Grajkowska, A., (2011). "Valuing intellectual capital of innovative start-ups", Journal of Intellectual Capital, Vol.12, No. 2, pp. 179-201.
Grasenick, K., and Low, J., (2004). "Shaken, Not Stirred: Defining and connecting indicators for the measurement and valuation of intangibles", Journal of Intellectual Capital, Vol.5,No. 2, pp. 268-281.
Green, A., and Ryan, J.J.C.H., (2005). "A framework of intangible valuation areas (fiva) aligning business strategy and intangible assets", Journal of Intellectual Capital, Vol. 6, No. 1, pp. 43-52.
Grimaldi, M., Cricelli, L., and Rogo, F., (2013). "A theoretical framework for assessing managing and indexing the intellectual capital", Journal of Intellectual Capital, Vol. 14, No. 4, pp. 501-521.
Guthrie, J., Petty, R., and Ricceri, F., (2006). "The voluntary reporting of intellectual capital: comparing evidence from Hong Kong and Australia", Journal of Intellectual Capital, Vol. 7, No. 2, pp. 254-271.
Han, D., and Han, I., (2004). "Prioritization and selection of intellectual capital measurement indicators using analytic hierarchy process for the mobile telecommunications industry", Expert Systems with Applications, Vol. 26, No. 4, pp. 519-527.
Hosseini, M., and Owlia, M.S., (2016). "Designing a model for measuring and analyzing the relational capital using factor analysis: Case study, Ansar Bank", Journal of Intellectual Capital, Vol. 17, No. 4, pp. 734-757.
Itami, H., and Roehl, T.W., (1991). Mobilizing Invisible Assets, Harvard University Press.
Joshi, M., Cahill, D., and Sidhu, J., (2010). "Intellectual capital performance in the banking sector: an assessment of australian owned banks", Journal of Human Resource Costing & Accounting, Vol. 14, No. 2, pp. 151-170.
Kannan, G., Pokharel, S., and Kumar, P.S., (2009). "A hybrid approach using ism and fuzzy topsis for the selection of reverse logistics provider", Resources, Conservation and Recycling, Vol. 54, No. 1, pp. 28-36.
Kanungo, S., and Bhatnagar, V.V., (2002). "Beyond generic models for information system quality: the use of interpretive structural modeling (ISM)", Systems Research and Behavioral Science, Vol. 19, No. 6, pp. 531-549.
Khan, I., and Rahman, Z., (2015). "Brand experience anatomy in retailing: an interpretive structural modeling approach", Journal Of Retailing and Consumer Services, Vol. 24, pp. 60-69.
Lentjusenkova, O., and Lapina, I., (2016). "The transformation of the organization's intellectual capital: from resource to capital", Journal of Intellectual Capital, Vol.17, No. 4, pp. 610-631.
Liu, X., Chakpitak, N., Yodmongkol, P., and Cang, S., (2014). "Analysis of intellectual capital disclosure in cross-cultural e-tourism enterprises", Journal of Intellectual Capital, Vol. 15, No. 2, pp. 249-263.
Lytras, M.D., Edvinsson, L., and Ordonez De Pablos, P., (2008). The intellectual capital statements: evolution and how to get started. Knowledge Management Strategies: A Handbook Of Applied Technologies. Igi Global.
Marr, B., Schiuma, G., and Neely, A., (2004). "Intellectual capital-defining key performance indicators for organizational knowledge assets", Business Process Management Journal, Vol. 10, No. 5, pp. 551-569.
Martinez-Torres, M.R., (2006). "A procedure to design a structural and measurement model of intellectual capital: An exploratory study", Information & Management, Vol. 43, No. 5, pp. 617-626.
Mat Husin, N., Hooper, K., and Olesen, K., (2012). "Analysis Of Intellectual Capital Disclosure-An Illustrative Example", Journal Of Intellectual Capital, Vol. 13, No. 2, pp. 196-220.
Mavridis, D.G., (2004). "The intellectual capital performance of the japanese banking sector", Journal of Intellectual Capital, Vol. 5, No. 1, pp. 92-115.
Mcgregor, J., Tweed, D., and Pech, R., (2004). "Human capital in the new economy: Devil's bargain?", Journal of Intellectual Capital, Vol. 5, No. 1, pp. 153-164.
Mention, A.-L., and Bontis, N., (2013). "Intellectual capital and performance within the banking sector of Luxembourg and Belgium", Journal of Intellectual Capital, Vol. 14, No. 2, pp. 286-309.
Moon, Y.J., and Kym, H.G., (2006). "A model for the value of intellectual capital", Canadian Journal of Administrative Sciences, Vol. 23, No. 3, pp. 253-269.
Nedjati, A., and Izbirak, G., (2013). "Evaluating the intellectual capital by anp method in a dairy company", Procedia-Social and Behavioral Sciences, Vol. 107, No., pp. 136-144.
Ordonez De Pablos, P., (2002). "Evidence of intellectual capital measurement from asia, europe and the middle east", Journal of Intellectual Capital, Vol. 3, No. 3, pp. 287-302.
Ordonez De Pablos, P., (2003). "Intellectual capital reporting in spain: a comparative view", Journal of Intellectual Capital, Vol. 4, No. 1, pp. 61-81.
Ordonez De Pablos, P., (2004). "Measuring and reporting structural capital: Lessons from european learning firms", Journal of Intellectual Capital, Vol. 5, No. 4, pp. 629-647.
Ordonez De Pablos, P., and Lytras, M.D., (2008). "Competencies and human resource management: implications for organizational competitive advantage", Journal of Knowledge Management, Vol. 12, No. 6, pp. 48-55.
Perez, J.R., and Ordonez De Pablos, P., (2003). "Knowledge management and organizational competitiveness: A framework for human capital analysis", Journal of Knowledge Management, Vol. 7, No. 3, pp. 82-91.
Petty, R., and Guthrie, J., (2000). "Intellectual capital literature review: measurement, reporting and management", Journal of Intellectual Capital, Vol. 1, No. 2, pp. 155-176.
Rindermann, H., Kodila-Tedika, O., and Christainsen, G., (2015). "Cognitive Capital, Good Governance, And The Wealth Of Nations", Intelligence, Vol. 51, pp. 98-108.
Roos, G., and Roos, J., (1997). "Measuring your company's intellectual performance", Long Range Planning, Vol. 30, No. 3, pp. 325-426.
Roos, J., Roos, G., Dragonetti, N.C., and Edvinsson, L., 1997. Intellectual capital: Navigating in the new business landscape, macmillan, houndsmills, basingtoke.
Roshani, K., 2018. A model for measuring intellectual capital in banks, Ph. D, Yazd University.
Saaty, T.L., (1986). "Axiomatic foundation of the analytic hierarchy process", Management Science, Vol. 32,  No. 7, pp. 841-855.
Saaty, T.L., (2004). "Fundamentals of the analytic network process-dependence and feedback in decision-making with a single network", Journal Of Systems Science And Systems Engineering, Vol. 13, No. 2, pp. 129-157.
Sadatrasoul, S.M., and Hajimohammadi, Z., (2018). "Investigating the missing data effect on credit scoring rule based models: the case of an iranian bank", Journal Of Industrial Engineering And Management Studies, Vol. 5, No. 2, pp. 1-12.
Seetharaman, A., Lock Teng Low, K., And Saravanan, A.S., (2004). "Comparative justification on intellectual capital", Journal Of Intellectual Capital, Vol. 5, No. 4, pp. 522-539.
Shih, K.-H., Chang, C.-J. and Lin, B., (2010). "Assessing knowledge creation and intellectual capital in banking industry", Journal Of Intellectual Capital, Vol. 11, No. 1, pp. 74-89.
Singh, M.D., Shankar, R., Narain, R. and Agarwal, A., (2003). "An interpretive structural modeling of knowledge management in engineering industries", Journal of Advances In Management Research, Vol. 1, No. 1, pp. 28-40.
Soleimani, H., and Fattahi Ferdos, T., (2017). "Analyzing and prioritization of hse performance evaluation measures utilizing fuzzy ANP (Case Studies: Iran Khodro and tabriz petrochemical)", Journal Of Industrial Engineering And Management Studies, Vol. 4, No. 1, pp. 13-33.
St-Pierre, J., and Audet, J., (2011). "Intangible assets and performance: Analysis on manufacturing SMES", Journal Of Intellectual Capital, Vol. 12, No. 2, pp. 202-223.
Stewart, T., and Ruckdeschel, C., 1998. Intellectual Capital: The New Wealth Of Organizations, Wiley Online Library.
Sydler, R., Haefliger, S., and Pruksa, R., (2014). "Measuring intellectual capital with financial figures: Can we predict firm profitability?", European Management Journal, Vol. 32, No. 2, pp. 244-259.
Thakkar, J., S.G., Deshmukh, Gupta, A.D., and Shankar, R., (2007). "Development of a balanced scorecard: an integrated approach of interpretive structural modeling (ISM) and analytic network process (ANP)", International Journal of Productivity and Performance Management, Vol. 56, No. 1, pp. 25-59.
Tsui, E., Wang, W.M., Cai, L., Cheung, C.F., and Lee, W.B., (2013). "Knowledge-based extraction of intellectual capital-related information from unstructured data", Expert Systems with Applications, Vol. 41, No. 4, pp. 1315-1325.
Warfield, J.N., (1974a). "Developing Interconnection Matrices In Structural Modeling", Systems, Man And Cybernetics, IEEE Transactions on, Vol.Smc-4, No. 1, pp. 81-87.
Warfield, J.N., (1974b). "Developing Subsystem Matrices In Structural Modeling", IEEE Transactions on Systems, Man, and Cybernetics.
Wiig, K.M., (1997). "Integrating Intellectual Capital And Knowledge Management", Long Range Planning, Vol. 30, No. 3, pp. 399-405.
Yi, C.-G., (2012). "Intellectual Capital Indicators For The Korean Public Research Institute", International Journal of Intelligent Enterprise, Vol. 1, No. 3-4, pp. 199-214.
Yildiz, S., Meydan, C., and Guner, M., (2014). "Measurement Of Intellectual Capital Components Through Activity Reports Of Companies", Procedia-Social and Behavioral Sciences.