Measuring and Reporting Knowledge - Based Resources : the Intellectual Capital Report

The purpose of this empirical study is to investigate the current state of best practices in the transdisciplinary field of intellectual capital management and measurement. The paper examines the proposition that intellectual capital report is a key element in firm’s sustainable competitive advantage. This relevance will be reflected by way of disclosure of intellectual capital in the annual report or intellectual capital report. The disclosure of organizational intellectual capital contributes to the formation of a more detailed picture of the organization. It clearly signals organizational compromise on key elements, human capital, relational capital and organizational capital, which forms the “invisible” roots of the organizational value. However, intellectual capital measurement tool as well as intellectual capital reports contribute to make visible these hidden roots. Firms which have responded to the challenge of measuring and reporting intellectual capital are able to visualize their intellectual capital, and with this strategic view, they are able to compete and gain a sustainable competitive advantage. Firstly, this paper is intended to provide a conceptual framework for IC analysis in the Knowledge Economy. Secondly the paper explores interesting factors regarding the dynamics of measuring and reporting IC in pioneering firms from Asia, Europe and The Middle East. After in-depth case analysis of leading firms in this field, an integrative IC model is discussed, which involves managing, measuring and reporting on IC.