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Organisational capital modelling, measuring and contextualising

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Organisational Capital There is much debate as to how companies carry out their activities in the context of new information and communication technologies influencing organisations to decentralise and develop new managerial practices, including outsourcing and networking Recent theories have emphasised the importance of organising as a key component for building corporate competitive advantage and scholars have looked at this from a range of perspectives including in relation to intangible assets, human capital, work training and the process dimension Yet the concept of organisational capital as such – in spite of its indubitable relevance and attractiveness – is still to be clarified until now In this book the subject is approached in four ways First, from an analytical perspective: what is the status of organisational capital as a concept, and how is it defined? Second, from a ontological perspective: what type of (implicit) orders can be designed and implemented around organisations? Third, from the measurement perspective: what kind of frameworks and what type of metrics can be prototyped? And finally, the implementation perspective: how should organisations integrate the organisational capital perspective in the definition and implementation of their strategies for resources’ allocation The book provides the first multifaceted and international effort from a broad perspective, aiming at clarifying the concept of organisational capital and determining its analytical and operational implications Covering a large area of theoretical and empirical evidence, this book will be of great interest to students and researchers engaged with organisational design, innovation modelling and change management, as well as consultants in IT and organisational design Ahmed Bounfour is a professor at The University Paris-Sud, and the founder and titular of the European Chair On Intellectual Capital Management Routledge Studies in Innovation, Organisation and Technology Innovation in the US Service Sector Michael P Gallaher, Albert N Link and Jeffrey E Petrusa Industrial Innovation in Japan Edited by Takuji Hara, Norio Kambayashi and Noboru Matsushima Information and Communications Technologies in Society E-Living in a digital Europe Edited by Ben Anderson, Malcolm Brynin and Yoel Raban Managing and Marketing Radical Innovations Marketing new technology Birgitta Sandberg The Innovative Bureaucracy Bureaucracy in an age of fluidity Alexander Styhre Innovations and Institutions An institutional perspective on the innovative efforts of banks and insurance companies Patrick Vermeulen and Jorg Raab Knowledge and Innovation in Business and Industry The importance of using others Edited by Håkan Håkansson and Alexandra Waluszewski Knowledge and Innovation A comparative study of the USA, the UK and Japan Helen Brown Mobility and Technology in the Workplace Edited by Donald Hislop 10 Energizing Management Through Innovation and Entrepreneurship European research and practice Edited by Milé Terziovski 11 Innovating for Sustainability Green entrepreneurship in personal mobility Luca Berchicci 12 Organisational Capital Modelling, measuring and contextualising Edited by Ahmed Bounfour Organisational Capital Modelling, measuring and contextualising Edited by Ahmed Bounfour First published 2009 by Routledge Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Simultaneously published in the USA and Canada by Routledge 270 Madison Avenue, New York, NY 10016 Routledge is an imprint of the Taylor & Francis Group, an informa business This edition published in the Taylor & Francis e-Library, 2008 “To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.” © 2009 selection and editorial matter: Ahmed Bounfour; individual chapters: the contributors All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Organisational capital : modelling, measuring and contextualising / edited by Ahmed Bounfour p cm Includes bibliographical references and index Organizational learning Corporate culture Human capital Intellectual capital I Bounfour, Ahmed HD58.82.O74295 2008 658.4’038—dc22 2008025830 ISBN 0-203-88521-X Master e-book ISBN ISBN 13: 978-0-415-43771-4 (hbk) ISBN 13: 978-0-203-88521-5 (ebk) ISBN 10: 0-415-43771-4 (hbk) ISBN 10: 0-203-88521-X (ebk) Contents List of illustrations List of contributors Introduction vii x AHMED BOUNFOUR Organizational capital: concept, measure, or heuristic? J C SPENDER The power and frailty of organisational capital 24 JAN MOURITSEN An intellectual capital view of business model innovation 40 GÖRAN ROOS AND STEVE PIKE Knowledge, recognition and “communautalism” 63 AHMED BOUNFOUR Designing sequences for knowledge exchange: the Hau-Ba model 76 AHMED BOUNFOUR AND GWENAËLLE GREFE Dynamic capabilities of communities 109 AHMED BOUNFOUR The dynamics of self-renewal: a systems-thinking to understanding organizational challenges in dynamic environments 119 PIRJO STÅHLE Applying KVA analysis, risk simulation and strategic Real Options: the shipyard case THOMAS HOUSEL, SANDRA HOM, JOHNATHAN MUN AND CHRISTINE L KOMOROSKI 147 vi Contents When IT does matter: setting up “value contracts” between stakeholders 186 YVES CASEAU 10 Mapping value creation of organizational capital 202 BERNARD MARR 11 Attention management in organizations: four levels of support in information systems 214 CLAUDIA RODA AND THIERRY NABETH 12 Leveraging organizational capital for innovation: the process of marketing knowledge co-creation 234 FLORIAN KOHLBACHER 13 Organisational capital and competence building 258 ANJALI BAKHRU 14 IT, organisational capital and the reporting (measurement) issue 268 AHMED BOUNFOUR Index 289 Illustrations Figures 2.1 3.1 3.2 3.3 3.4 3.5 4.1 5.1 5.2 5.3 5.4 5.5 5.6 5.7 6.1 6.2 6.3 7.1 8.1 8.2 8.3 8.4 8.5 8.6 8.7 Narratives of BS 7750 Level Navigator Level Navigator Effector plot Effector plot at Level Instrumental and intrinsic values of the resources The new capitalism map: Transaction Regime versus Community Regimes, Natural Communities versus Emerging Communities Key characteristics of knowledge and implications for action Modalities of organising: the triple Ba approach The building blocks of the Hau-Ba model The specific Ba active in the foundry workers’ community Hau-Ba model Active Ba in the foundry workers’ community Synthesis schema of the Hau-Ba model applied to the case of a community of foundry workers The articulation between Natural Communities and Emerging Communities Finland’s future path – the ‘Innovative Offer’: a tentative modelling A bundle of dynamic capabilities for Finland’s new path The autopoietic nature of systems DoD IT portfolio management decision-support interactions Market value vs book value over time (S&P 500) Classification of assets NPS valuation framework Measuring output Comparison of traditional accounting versus process-based costing Comparison of outputs traditional accounting benefits (revenues) versus process-based value 28 54 54 55 55 57 66 81 85 87 93 94 101 106 111 115 117 133 150 151 152 157 158 159 160 viii 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15 8.16 8.17 8.18 8.19 9.1 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 12.1 12.2 12.3 12.4 14.1 14.2 Illustrations Integrated Risk Analysis Terrestrial 3D laser scanning market forecast (hardware, software and services) NSRP Ship Check Data project preliminary results cost/time savings SIS laser scanning equipment Sample point cloud image (USNS ship exterior) Digital 3D model of USNS superstructure Overall PLM market growth history and forecast Evolution of PLM Planning yard core processes Potential reduction of work days for “Conduct ship check” process Potential reduction of work days for “Generate Drawings” process COA strategic options Efficiency value related to quality of service Apple tree analogy Organizational resources Classification of intangible resources Kaplan and Norton’s strategy map template Value creation map template Value creation map vs Balanced Scorecard Value creation map for Novo Nordisk Value Creation Reporting in Novo Nordisk Knowledge-based marketing processes Knowledge-based marketing processes (integrated model) The marketing knowledge co-creation process The marketing knowledge co-creation process and ba B2B and intangibles categories Organisational capital: key processes 162 167 168 169 170 171 172 172 174 179 180 181 196 203 204 204 206 208 208 210 211 235 235 247 248 280 282 Tables 4.1 Transactional regime, community regimes, types of resources and IPRs 5.1 The Hau-Ba Model, type of organisational regime, barriers and practices 5.2 What are the exchanges modalities that characterise the saving of the intra-organisational technical memory? 5.3 What are the exchanges modalities that characterise the saving of the intra-organisational technical memory? 5.4 The fulfilment of the Hau cycle inside the Ba 7.1 The paradigms of systems thinking 7.2 Self-organizing systems according to Prigogine 73 90 92 93 103 123 128 Illustrations 7.3 8.1 8.2 8.3 8.5 8.6 8.7 8.8 8.9 8.10 8.11 14.1 14.2 14.3 Description of self-referential systems Performance measurement models KVA metrics Approaches to KVA calculation Potential DoD applications of KVA and Real Options Discussion of KVA methodology used in case study Case analysis – baseline data assumptions Core planning yard process overview KVA results – analysis of costs KVA results – analysis on ROI Summary of Results Elements of relational capital Elements of market capital A possible structure for intangibles (organisational) B2B reporting: the horizontal dimension 14.4 A proposed structure for an ad hoc annex on B2B (intangibles) cross-sectoral reporting 14.5 A possible structure for intangibles (organisational) B2B reporting: the vertical dimension ix 139 154 160 161 165 175 176 177 178 181 183 281 281 283 283 285 Boxes 5.1 14.1 14.2 The Hau-Ba in case 1: the ‘6 A model’ A review of recent researches on IT, IS and competitive strategies A review of the literature on the importance of organisational processes 105 273 274 280 A Bounfour dimensions are to be considered for qualification and quantification: resources (investment in), processes (the hub of the analysis) and outputs (alias impacts) In fact, looking into the details of how the analysis is conducted, it is clear that the organisational dimension is the main focus of the project, and therefore that any development at this level will substantially increase the awareness and understanding of intangibles, in Europe, but also on a more global scale By focusing on processes – including their standardisation – B2B is expected to provide valuable inputs into the ongoing debate on intangibles in the international arena The debate is just starting; it is both analytical and practical This option is certainly the most coherent one The project’s main focus: the organisational dimension As has been underlined earlier, at the analytical level, over the last ten years, several theories and works have emphasised the importance of the organisational dimension as a key component for building corporate – and, more generally, organisations’ – competitive advantage Resource-based views, as well as capabilities approaches, have strongly contributed to such an emphasis Several scholars have tried to circumscribe the concept of organisational capital by considering it from the general perspective of intangible assets For B2B, organisational capital is defined as a set of processes designed to improve performance within the value-added chains of companies and industries These processes are mainly organised in modules and might be used for defining ad hoc metrics and statistical reporting Categories of intangibles By considering the hub of B2B Metrics – the four modules – it is clear that the categories used are closely related to, and included within, the intangibles categories (Figure 14.1) Figure 14.1 B2B and intangibles categories IT, organisational capital and the reporting (measurement) issue 281 Table 14.1 Elements of relational capital Relational capital (upstream)/ e-procurement Relational capital (vertical)/ e-collaboration Process time reduction Process time reduction Integration of systems Increase in product quality Standardisation of systems Market (formative) power Reliability of supply Market (formative) power Table 14.2 Elements of market capital Process time reduction Increased transparency/availability of information Turnover Market share Share of new products in % of total turnover Turnover with existing customers/customer retention Customer satisfaction, service Outside companies, and therefore within the value-added chain, it is clear that e-procurement, SCM and e-collaboration are designed to reinforce corporate relational capital This relational capital includes a specific component dedicated to innovation resulting from e-collaboration The main elements of relational capital – for which ad hoc metrics can be defined – are indicated hereafter (see Table 14.1 and Figure 14.2) CRM processes are naturally defined and implemented with the aim of reinforcing companies’ market capital Specific components of market capital are indicated in Table 14.2 B2B Metrics and statistical reporting The problematic of managerial and statistical reporting in the knowledge economy is one of those justifying the conduct of B2B Metrics and other similar projects within the IST programme By conducting surveys and generating monographs on a relatively large scale, including the international perspective, the project is contributing to a better understanding of the knowledge (and virtual) economy as a concept For instance, in the automotive sector, the pilot phase tends to suggest that B2B as an organisational design is still limited in terms of diffusion, even though it is also largely recognised that such a path will be adopted by many of the value-added chain players There are still important barriers upstream and downstream the value-added chain Most of these are related to the complementary assets (training of managers) as well as to the weak absorptive capacity of these organisations Figure 14.2 Organisational capital: key processes Table 14.3 A possible structure for intangibles (organisational) B2B reporting: the horizontal dimension Investment in (Organisational capital) Impact of investment (other components of intellectual capital) E-procurement processes for direct resources Relational capital – upstream E-procurement processes for indirect resources Relational capital – upstream Supply chain management processes Relational capital – upstream CRM processes Market capital E-collaboration processes Relational capital Standardisation of all processes Complementary innovation Relational capital Human capital Table 14.4 A proposed structure for an ad hoc annex on B2B (intangibles) cross-sectoral reporting Dimension of Examples of the main items B2B Reporting Accounting rule Present accounting channel for disclosure Process Indexes Expenditures on: – Organisational Generic processes such capital e-procurement, SCM, e-collaboration, CRM, standardisation of processes, complementary innovation Registration at Profit and loss their internal costs statement According to Ad hoc annex a harmonised definition Impact Indexes – Relational capital, market capital, human capital Expenditures on ad hoc business processes These processes have to be agreed at the sectoral level They have to be very limited in number (10 processes maximum) and agreed among ad hoc professional associations Registration at Profit and loss their internal costs statement According to Ad hoc annex a harmonised definition Calculated Indexes such as: Market capital Overall market shares Market share maintenance (development) Share of turnover due to new products Process time reduction Increase in transparency Relational capital – upstream, lateral and downstream process time reduction standardisation of systems reliability of supply formative power Human capital Investment in training Investment in new organisational forms Assessment Balance sheetof outputs Ad hoc annex performance based on voluntary ad hoc basis (Benchmarking groups, eventually supported within the IST programme) 284 A Bounfour From the managerial/statistical reporting, B2B Metrics has contributed to the clarification – and recommendation – of different types of statistical reporting schemes For instance, some items – those relating to objectives, barriers and infrastructures – are already easily subject to traditional reporting initiatives Those of more sophisticated forms and contents (impacts, organisational forms) might need the building – and initiating – of voluntary communities of practice These might consist of professional associations and companies who are ready to share relatively sensitive information that they control, in terms of production and access From the analytical elements available today, it is clear that intangibles can be better reported on a more ‘community of practice’ level The horizontal versus vertical dimension for reporting on intangibles According to the IC-dVAL® approach (Bounfour, 2003), two dimensions for reporting are suggested: • • The horizontal dimension, which refers to the definition and implementation of cross-sectional information It requires better harmonisation, in order to reinforce the meaning of the information by reinforcing its reliability and comparability The vertical dimension, which refers to the necessary contingent nature of an organisation, sectional business strategies, process strategy and performance Horizontal (cross-sectoral) reporting Horizontal reporting is based on very few indicators, comparable from one sector to another A potential structure for reporting on organisational intangibles might be as shown in Table 14.3 How to report At the accounting level, this reporting can be the subject of an ad hoc annex within the general accounting system of companies Accounting rules to be implemented can be based on those suggested in Table 14.4 This reporting can be carried out with national statistics, using an amended version of the B2B questionnaire Vertical (sector specific) reporting The vertical dimension is specifically necessary for reporting at the level of sectors, communities of practice or individual companies It is recommended here because we assume that, in the knowledge economy, idiosyncrasy of performance is an important dimension, often neglected by statistical reporting The approach here might be organised from two perspectives (see Table 14.5): IT, organisational capital and the reporting (measurement) issue 285 Table 14.5 A possible structure for intangibles (organisational) B2B reporting: the vertical dimension Pure narrative approach Mix of narrative and metrics Vision Vision Effective organisational models/structure/ processes Effective organisational models/structure/ processes Emerging organisational models/structure/ processes Related metrics Registered/expected performance Emerging organisational models/structure/ processes Lessons learned: failures versus successes Related metrics Lessons learned: failures versus success • • A pure narrative perspective: here what is important is the description of visions, and already effective or prospective organisational modes; A mix of narrative and quantitative data How to report Vertical reporting 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technology and firm performance: a study of the valve manufacturing sector’, Information Systems Research, Vol 3, No (December): pp 307–33 Weill, P., Subramani, M and Broadbent, M (2002) ‘Building IT infrastructure for strategic agility’, Sloan Management Review, Vol 44, No 1: pp 57–65 Index absorptive capacity 46, 59, 82, 281 accounting 7, 13–14, 21, 22, 38–9, 151–2, 156, 159–60, 97–100–190, 212, 278, 279–284 acquisition 3, 47, 147–51, 156, 165, 173, 180, 182–5, 215, 218 apple tree analogy 202–3 Argyris 121, 142, 216, 232 attention management 213–233 automation 171, 179, 227 autopoiesis theory 119, 133–134, 144 ba 3, 75, 84–93, 99–103, 240, 248–49 Bailey 214, 226, 229, 231 Baker 43, 59, 239, 251 Bakhru 4, 258, 260–4, 266 balanced scorecard 14–21, 154, 205–8, 213 Ballow 151–2, 185 Barnard 15, 18, 20 Barney 10, 20, 49–53, 59, 212, 266, 276, 287 Bartram 220, 229 Bass 201 Beck 19, 215, 228–30 behaviour 65–8, 99, 199 benchmarking 149, 173, 190, 210, 283, 285 Bharadwaj 271–3, 275, 273, 286 bifurcation 124, 126, 127–8,135, 140 Bontis 14–5, 20, 25, 38, 155–6, 253, 259–60, 266 bottom-line benefits 246 bounded cognitive capabilities 216 Bounfour 1–3, 63–96, 98, 100, 107, 115, 117, 200, 229, 234, 241, 252, 276, 280, 284, 286 Bourdieu branding 116 Brown 119, 142, 201, 230, 245, 252, 269 Brynjolfsson 270, 273, 279, 286 business ecosystem 234, 242, 251 business model 1–2, 14, 40–62, 72, 168, 232, 242, 262, 272, 297 Caillé 69, 75, 90, 93, 109 capabilities-based planning 149 CAPEX 188 Carr 196, 199–200, 268–9, 296 Caseau 3, 186–201 Chandler 262, 266 chaos 121, 123–128, 133, 140, 145 Chesbrough 42, 45, 241–2, 254 Christensen 42–3, 59, 139, 142, 230–1 cities 3, 65–9, 75, 107, 110, 112, 117–8, 201 cluster 101, 103–4, 118, 236, 241 CMU view of the firm 15 codified knowledge 32 cognitive 46, 56, 77, 142, 142–3, 214, 216–8, 230, 232, 263 Coleman 7–9, 20 collaborative technology 171 Collis 110, 118, 212 combinative capabilities 119, 118, 241, 245, 254 commonalities 110, 242, 264 communautalism 3–4, 63–75, 107 community 8–20, 22, 28–9, 63–112, 215, 224, 227–8, 284; community development 3; community regime 63–66, 72, 75, 84, 107, 113–116, 118; constrained community 111; natural community 65; organic community 67, 93; quasi-organic community 93 compensation 24, 97, 154, 195 competence 3–4, 24, 30, 44, 52, 60–1, 80–4, 102, 108–12, 129, 212, 243, 255–6, 258–60, 277–8 competitive: competitive edge 251–2; competitive environment 48, 119, 140, 253, 266; competitive processes 274 290 Index contractual activity 10 conversion processes 274 core capabilities 62, 241, 254, creation: knowledge creation 3–4, 61, 75–83, 89–95, 103–4, 107–8, 128, 133,144, 152, 214, 228, 234–5, 240–60; value creation 1–3, 24, 27, 35, 52, 59, 154–5, 186–91, 202, 205, 207–13, 244, 250, 256, 266–79; co-creation 4, 234, 236, 238, 242–4, 247–8, 254, 254 CRM 34, 183, 236, 237, 239, 281, 283 cross-fertilization 245 customer-linking capability 237, 239 customers: 2, 4, 7–11, 14, 17, 30–5, 43, 46–53, 56–62, 80, 154, 159, 173, 188–95, 203–6, 212, 216, 234–62, 270, 281; customer-linking capability 237–40 Cusumano 237, 240, 252, 255 cybernetics 120–1, 144–8 Czerwinski 222, 225, 229–30 Davenport 215, 228–30, 238–9, 252 Day 237, 239, 243, 252 DCF 187–8, 200 decision-making 16–7, 22, 198, 233, 236, 264 deliberative level 217, 221–2 demand side perspective 114 De Marco 201 Desouza 238, 243–4, 252 Devaraj 278, 286–7 diaspora 67, 69, 75, 112, 114, 116 dissemination 3, 72, 76, 82, 120, 171 division of labor 5, 17 DOD 147–8, 158, 163, 165, 178, 182, 185, 216, 230 Dooley 120, 142 Drucker 6, 21, 52, 60, 234, 241, 252 dual focus 278 Dyer 237, 249, 252 dynamic: dynamic capabilities 2–3, 39, 52, 62, 68, 109–18, 241, 246, 253–58, 277, 266–7; dynamic environment 3, 119, 124, 142; e-commerce 60–1, 263, 266, 285, 297 economic: economic agent 2; economic asset 3, 69; economic value 13, 154, 156, 189 economists 1, 5, 11–2, 21–2, 51, 59–62, 77, 107, 128, 141–4, 152, 185, 212, 271, 286 education 5–11, 17–20, 34, 41, 114, 143–7 Edvinsson 7, 21, 24, 38, 75, 107, 155, 200–1, 212 Ekelund 5, 21 empathic design 240, 250 enabler 234, 241, 248 entrepreneurship 15, 20, 27, 52, 60, 111, 116, 252, 260, 266–7 entropy 124–6, 140–1 environment 3, 8, 17–8, 25, 27–31, 37, 44, 48, 52, 82, 107–24, 119–20, 131–44, 154, 160, 165, 169, 178, 219, 213, 223, 216, 244, 249, 265–6, 274 equality 136, 139, 141 equity principle 113 ERP 34, 286 EVA 154, 289–90, 200 evolving system 119, 144 experience 9, 26, 38, 47, 71–2, 88, 96, 98–101, 108, 137–9, 173, 184, 187, 195, 203, 213, 221, 229, 232, 243–4, 250, 252, 256, 259, 262 Faulkner 21, 142, 145 Field 7–8, 10, 12, 30–1 Finland model 113, 114 Fjeldstad 4, 50, 52–3,62 Fogarty 226, 230 Forrester 120–21, 143, 229 forum 243 freelancers 67, 116 Furukawa 120–1, 143, 229 Giddens 11, 21, 115, 118 gift 69, 71–5, 84, 87, 91–2, 95, 98–105 goodwill 13, 102, 88, 95 Gort 5–6, 20–1 governance 64, 66–7, 84, 111, 114, 142, 154, 183, 194, 200, 256 Grant 7, 9, 21, 245, 253, 261–2, 264, 277 Grefe 3, 76–108 GRID systems 25 group level attention 223 group perception 218–20 Halpern 8, 21, 172 Hamel 24, 39, 42, 45, 49, 60, 62, 212 HAU BA theory 3, 83–4, 96, 102, 104 Helfat 51, 60, 263–66 Hom 147 Honneth 3–4, 65, 69–70, 75, 90, 93, 108 Horvitz 222, 225–6, 239–40 Housel 3, 147–185 Index human asset 5, 154, 156, 275 human capital 2, 5, 6–11, 15, 29–37, 34–8, 52–3, 57, 60, 79, 86, 153, 156–7, 184, 188, 212, 229, 259–60, 277, 283 human resource 21, 49, 58, 80, 84, 113, 156, 203, 214, 219, 233, 266, 276–8 humpty dumpty style 15 Iansiti 52, 60, 240, 253 IC methodologies 51 IC-dVAL 200, 284 IC-index 15 Ichijo 108, 234, 241, 245, 247–8, 253–4, 257 ICN Intellectual Capital Navigator 50 ICT 113–14 identity 25, 32–3, 38, 70, 88, 97–8, 100, 103, 131–4, 139–0 idiosyncratic resources 73–4 incentive system 80 industry boundaries 45 information: information comprehension 218–9; information selection 218; information system 3, 30, 34, 73, 187–201, 193, 195, 197–199, 214–215, 271, 273, 275–6, 278, 286–7; information technology 34, 39, 60, 147, 178, 183, 200, 263, 268, 269, 271, 273, 276, 286–8 Inkpen 249, 254 innovation 8, 14, 25, 40–49, 51, 53, 56–62, 67–8, 75–79, 82–7, 107, 112, 116, 119, 123, 126, 128, 130, 139, 143, 156, 166, 206, 210, 214, 228, 234, 253, 256–62, 267, 269, 281, 283 intangible asset 11, 13–4, 51, 63, 75, 82, 151–3, 155–6, 185, 188, 256, 258–61, 265, 271, 280 intangible capital 7, 11–2, 16, 69 intangible value 4, 152, 186–8, 188, 200 intellectual capital 14, 25, 23, 25–41, 45, 47–51, 53, 57–60, 111–14, 118, 145, 133–54, 245, 253, 258–63, 265–67, 283 intellectual property 16, 19, 26, 68, 72–5, 112, 258–62 intelligence 14, 27, 73, 112, 116, 119, 128–9, 164, 183–4, 201, 212, 230–1, 241, 260, 274 intelligent organization 116 interaction 7–15, 21, 33, 42, 46, 51–2, 60, 68, 70, 87, 89, 99–100, 103, 120, 122, 125–6, 129–52, 134–40, 130, 152, 214–7, 228–32, 238, 243–4, 246, 257, 261, 265, 276 291 investments 4–7, 9, 21, 32, 32, 86, 148–53, 156, 158, 160, 164, 168, 181, 196, 198–9, 240–43, 275, 278–79, 286–8 Itami 24, 32, 60, 78 iteration 124, 126, 128, 164, 175, 193 Jackson 123, 143 joint intellectual property 75 joint knowledge creation 242 Kaplan 14, 20–1, 154, 205–6, 212–3 Kaptelinin 225, 221 Karseras 10, 21 Keiretsu 237, 255 key resources 49, 79, 202, 207, 263 knowledge co-creation 234, 236, 238, 242–3, 247–50, 234 knowledge creation 3–4, 61, 45–78, 82–3, 89 knowledge economy 1–3, 59, 72–3, 76, 83, 86, 109, 252, 258, 260, 268, 269, 281, 284 knowledge strategy initiative 209 knowledge value added 3, 147, 157 Kogut 52, 60, 109, 118, 241, 245, 254 Kohlbacher 4, 234, 236, 238, 240, 242, 230, 252–6 Kohli 252, 278, 286 Komoroski 147 KPI 182, 209 KVA analysis 3, 147–51, 153, 157–61, 163–75, 177–8, 183–5, 221–2, 231 KVA ROI model 164 Kyriakopoulos 245, 246, 254 lead users 244, 257 learning 6–7, 16–23, 38, 43, 46, 50, 52, 59, 60, 102, 107–8, 118–21, 134, 136, 142, 144–5, 158–61, 175–6, 206, 212, 216, 219–20, 229–33, 236, 239, 243, 245, 249, 251, 252–5, 259, 266–7, 270 Leonard 234, 240, 241, 244, 254 Leonard-Barton 52, 119, 143, 240, 254 Lev 24, 35, 38, 151, 156, 184–5, 279, 287 Lincoln 171, 237, 255 Lippman 49, 60 Lorenz 121, 123, 126, 143, 234 Luhmann 119, 130, 134–44 Lülfesmann 6, 21 Lumpkin 52, 61 Lüthje 47, 61 Mahmood 272, 286–7 maintenance 102, 122–3, 130–3, 147–9, 292 Index maintenance (continued) 158, 165–68, 173, 176–8, 180, 182, 185, 193, 203, 283 mapping 3, 10, 15, 35, 38, 66, 72, 74, 202–3, 205, 207, 209, 212–3 March 10, 12, 15, 22, 61, 229, 245, 254–5, 286–8 market 1, 6, 9–10, 14, 26–7, 30–32, 42–47, 50–2, 56–65, 82, 86, 90, 113, 124, 142, 151–160, 167, 171–2, 185, 187–8, 210, 236–46, 249–57, 262, 266, 271–2, 277, 279, 281, 283, 286 marketing 4, 6, 30, 42, 51–2, 59–60, 79, 88, 234–9, 242–57, 272, 278; marketing knowledge 234–7, 242, 245–53 Markides 49, 61, 262, 266 Markus 273–4, 287–8 Marr 3, 25, 35, 38, 202–4, 206, 208, 210, 212–3, 261, 266 Marshall 5, 21, 212 Maturana and Varela 130–34 maturity metrics 190 Mauss 69, 71, 75, 84, 86, 89, 93, 108 McCrickard 210, 229, 231 measurement 2, 14, 16, 21, 38, 145, 147–8, 152, 154, 156, 166–70, 185, 201, 212–3, 268–71, 273, 275, 277, 279, 281, 285, 287 merchant model 57–8 meta-cognition 4, 216 meta-cognitive level 217–8, 228 metanational innovator 241 method of valuation 13–4 Miller 222, 245, 255, 261, 267 mindset 238, 240, 262 monetary resources 52, 203 money commodity capital cycle 16 monitoring 80, 192–3, 210, 224, 227 Moorman 93, 108, 245–60, 255 Morgan 10, 22 motivation 29, 32, 91–2, 96, 105, 209, 217, 221, 223 Mouritsen 2, 24–39 multitasking 214, 216, 221–5, 228, 230, 232 Mun 147, 153, 161, 183–5 Nabeth 3, 214, 216–32 Nagata 215, 226, 232, 254 Naohide 133, 144 Nardi 216, 232 narrative of achievement 35, 36 nation 25, 68, 111, 167, 270 Nelson 14, 22; Nelson & Winter’s model 14 network 7, 11, 17, 21, 26, 32–3, 35, 48, 50, 52, 65, 89, 113, 129–34, 136, 184–5, 236, 244, 249, 251–55 networking 1, 65, 67, 84, 88, 129, 133, 269 Nicolis 110–4, 116, 127, 131 Nobeoka 237, 240, 249, 251–2, 255 Nonaka 4, 17, 22, 52, 61, 75, 77–9, 82–5, 93, 95, 100, 108, 119, 128, 141, 144, 216, 234–6, 239–55 Normann 2, Norton 14, 20–1, 154, 205–6, 212–3 O’Reilly 246, 256–7 OECD 41, 61 Okada 133, 144 open source 62, 75 operational level 217–8, 222, 224, 227 OPEX 89 organic space 66, 68 organisational capabilities 24, 77, 262, 264, 266 organisational capital 5, 7, 9–21, 23, 183–5, 203–6, 209, 234–5, 237, 239, 241, 243, 247–51, 257, 267 organisational change 262 organisational design 1, 76, 82–3, 109, 268, 281 organisational memory 91–3 Orlikowsky 34, 39 patent 25–33, 82, 269, 277 PDM 236–7 Penrose 18–9, 22, 48–9, 61 perceptual level 217–8, 220–1 performance 4, 7, 22, 27, 32, 37–42, 47, 59–64, 70, 107–12, 118, 146–60, 165, 175, 179, 183–4, 180, 182, 199–200, 219, 212–4, 217, 222, 224, 226, 229–33, 242, 255, 259, 264–80, 283–7 Picard 219, 232 Pigou 5, 22 Pike 2, 39–40, 42, 44–52, 61–2 Pisano 39, 51, 62, 118, 256, 267 planning yards 167, 173, 176–7, 179, 184 Polanyi 77–8, 99, 108, 141, 145 Porter 4, 7, 17, 22, 45, 61, 120, 145, 191, 201, 271, 297 portfolio management process 149–50 Pöyhönen 110, 118–9, 145 Prahalad 24, 39, 49, 62, 212, 232, 243–4, 250–1, 256 Prigogine 121–123–4, 132, 142–5 Index private space 66, 68 processing meaning 135, 137 product development 44, 46–7, 51, 62, 110, 234, 236, 240, 245–6, 250–6, 264 productivity 21, 24, 29, 30, 34, 41, 51, 73, 141, 148, 158, 160, 165, 166, 171, 179, 182, 97, 217, 228, 251, 254, 270–3, 286–7 prominence 217–8, 210 property rights 19, 68, 72–5, 112 prospective memory 221–2, 231–2 psychological contract 92–3, 95, 98, 108–4 Putnam 8, 22, 201 quality of service 187, 192, 195–7 Ramirez 1–2, real options analysis 148, 157, 160, 164, 180, 183, 185 reciprocity 71, 100, 103 recognition 3, 25, 63, 65, 67–9, 82, 86–105, 110–15, 117, 121, 133, 138, 140 region 3, 9, 38, 41, 60, 65, 68–9, 75, 107, 110–11, 117, 201 relationship asset 275 reporting 4, 27, 72, 152, 155, 156, 161, 185, 210–2, 268–70, 275, 277, 273–5, 287 reputation 8, 10, 65, 74, 112, 186, 203, 209 resource allocation 2, 12, 15–16, 90, 149, 192 resource based view 40, 48, 51, 109, 246, 258–9, 266–7, 276–7, 280; RBV 48, 51–2, 109, 261–2 restructuration 11 return 5, 24–5, 41, 43, 64, 73, 95, 101–5, 127, 142, 147–55, 159–60, 163–4, 169, 175, 182–2, 198–9, 225, 245, 271 Richardson 275, 288 Ricoeur 3–4, 65, 69, 71–2, 74–5 Riesenberger 239, 253 risk simulation 3, 147, 149, 151, 153, 157, 159, 161, 163, 165, 167, 169, 171, 173, 175, 177, 179, 181, 183, 185 RO framework 153, 157, 160, 165–6, 175 ROCE 188–9, 200 Roda 3, 214–32 ROI 38, 148, 151–2, 157–8, 175, 179, 181, 186–9, 191–2, 194, 199 Roos 2, 39–62, 110, 118, 141, 145–6, 185, 212 Sawhney 242–4, 256 Schlegelmilch 235–6, 238, 242, 256 293 Schreyögg 264, 267 scoring methods 190 SECI 190 sedimentation 193 self: self-organization 119, 123, 124–31, 140–1, 143–4; self-referential system 134–5, 136–9 semi-public goods Senge 121, 125, 216, 283 service stack 189, 192, 194 Shane 260, 267 sharing 20, 34, 75, 79, 92, 97, 100, 104, 166, 171, 178, 193, 200, 209, 236, 238, 243, 246, 249–50, 252 Sircar 273, 287 Skandia 14–5, 21 Smith 5–6, 15, 108, 172, 249, 252 SOA 198 social capital 2, 5, 7–13, 22, 141, 260–1 social cohesion 113, 116 social translucence 220, 230 societal functionalities 114 socioeconomic system 1, 14, 63–4, 84, 107 software bus 198, 275 Solow 5, 7, 99, 270, 287 Song 51, 62, 239, 245, 256 space 15–7, 25, 31–3, 36, 45, 48, 62, 65–6, 68–9, 83, 84, 86–90, 97, 100, 104, 110, 112, 114, 116–17, 167–8, 171, 229, 232, 242, 250 Spender 2, 5–22 Ståhle 3, 110, 117–18, 123–4, 128, 130, 132–46 stakeholders 150, 152, 156, 184, 186–95, 200, 203, 206, 208, 213, 251 Stewart 24, 35, 39, 154 Stone 227, 229, 231, 233 strategic guidance 210 strategic real option 3, 147–185 strategy 1, 21–2, 27–8, 36, 41, 42–5, 49, 59–61, 134, 142, 149, 154, 160, 163, 182, 201–2, 205–9, 212–3, 216, 220, 227, 241, 245, 248, 249, 251, 254–5, 267, 263–4, 284, 285–7 supply chain 32, 236–7, 253, 283 Sveiby 24, 39 tacit dimension 78–80, 108 tacit knowledge 17, 73–4, 77–80, 82, 91, 236, 238, 242, 246–7, 249, 252, 254–5, 257, 259 Takeuchi 4, 7, 22, 75, 82, 93, 95, 100, 108, 119, 144, 216, 232, 234, 239, 248–50, 251, 254–56 294 Index tangible capital 14 task 18, 36, 98, 173, 174, 191, 214, 216–20, 223–27, 229–33, 238–9, 262; task delegation 227 taylorised resources 73 TCO 189 team-based mechanism 237 technology asset 275 Teece 16, 19, 23–4, 39, 49, 51–2, 62, 79, 82, 108–10, 108, 241, 245–6, 256, 263–4, 267 terrestrial three-dimensional technology 167 Thomke 238–9, 243–4, 256 Tonniës 63, 65, 75, 98, 108 tradable asset 25 trade 15, 91, 97–9, 154, 194, 259, 285 transaction regime 64–5, 75, 107, 113–14, 116 transformation 1, 10, 13, 30, 42, 49–53, 63–5, 108, 140, 173, 189, 193, 215, 239–41, 257, 269–71 trust 10, 30, 79, 99, 101, 103–4, 136–9, 141–3, 262–3 52, 59, 154–5, 186–7, 191, 202–3, 205, 207–13, 244, 264, 256, 266, 268, 270, 275–90, 278–9 value extraction 49 Vargas 276, 298 venture capitalism 116 von Bertalanffy 120, 122, 138, 142 Von Hippel 46, 62 Von Krogh 98, 108 VRIN 262 usage processes 274 Zack 243, 257 Zander 52, 60, 109, 118, 241, 245, 254 Zeleny 144, 146 Zijlstra 214, 226, 233 Zollo 109, 108, 264, 267 value chain 4, 41, 61, 156, 191, 243 value contract 187, 192–6, 199 value creation 1–3, 24–5, 27, 35–6, 38, WACC 189 Walsh 93, 108 Weick 108, 119, 129, 146 Weill 42, 45, 62, 272–4, 288 Wiener 120, 146 Wikström 238, 243, 257 Wilkins 85, 108, 232 Winter 14, 21–2, 77–8, 80–1, 108–9, 118, 254, 263–4, 267 workable heuristic 18 Yang 200–1, 230, 286 Yelle 6, 13 ... mobility Luca Berchicci 12 Organisational Capital Modelling, measuring and contextualising Edited by Ahmed Bounfour Organisational Capital Modelling, measuring and contextualising Edited by Ahmed... Cataloging-in-Publication Data Organisational capital : modelling, measuring and contextualising / edited by Ahmed Bounfour p cm Includes bibliographical references and index Organizational learning... issue of organisational capital, taking a broad theoretical perspective It discusses the semantic issue of organisational capital by relating it to other categories of capital – human capital and

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