confirmation ppt

Intelligent Identification of Intellectual Capital(IC) for Value Creation in Knowledge-

intensive Organizations

Student Name: Cai Linlin

Student ID: 11903034R

Program : MPhil

Chief Supervisor: Prof. Eric Tsui

Co-Supervisor: Prof. Benny Cheung

Outline1.Introduction2. Literature review 3. Research questions 4. Methodology 5. Preliminary results6. Significance 7. Publications & Future plan

Introduction-What is IC?

Classification Definition

Human capital The knowledge embedded in people

Structural capital The knowledge embedded in the organization and its systems

Relational capital The knowledge embedded in customers and other relationships external to the organizations

Dumay, J., & Garanina, T. (2013). Intellectual capital research: a critical examination of the third stage. Journal of Intellectual capital, 14(1), 10-25. Guthrie, J., Ricceri, F., & Dumay, J. (2012). Reflections and projections: a decade of intellectual capital accounting research. The British Accounting Review.

Intoduction-4 stages of IC research Stages Features Shortfalls Values Leading

researchers

1st stage Raise the awareness ;Top-down

Lack empirical study

Not specific Sveiby; Edvinsson; Stewart; Kaplan and Norton

2nd stage

Management, measurement, reporting IC ;Top-down

Lack of relevance

Financial outcomes Guthrie; Abeysekera; Petty

3rd stage Critical examine IC research; Bottom-up

-

Worth and importance of the products and services to customers and other stakeholders

Guthrie; Mourisen; Dumay

4th stage

Establish IC eco-system-concern more human beings and environmental issues;

Lack of empirical study

Wellbeing of human can environment

Edvinsson; Wasiluk; Mary; Gary; Dumay

Dumay, J. (2013). The third stage of IC: Towards a new IC future and beyond. Journal of Intellectual capital, 14(1). Dumay, J., & Garanina, T. (2013). Intellectual capital research: a critical examination of the third stage. Journal of Intellectual capital, 14(1), 10-25.


researchers




2nd stage


Stuck into accounting issues; IC frameworks



-



4th stage



Wellbeing of human can environment




researchers




2nd stage


Stuck into accounting issues; IC frameworks



-



4th stage



Wellbeing of human and environment



Literature review -The focus of the IC research literature

Total %

External reporting-ICD other reports and media 132 31.2%

Auditing 1 0.2%

Accountability and governance 7 1.7%

Management control/strategy 160 37.8%

Performance measurement 77 18.2%

Other (including general ) 46 10.9%

Grand total 423 100%

Guthrie, J., Ricceri, F., & Dumay, J. (2012). Reflections and projections: a decade of intellectual capital accounting research. The British Accounting Review.

To mange IC, you must locate IC first

(Stewart,1997)

Literature review -The method of identifying IC Most commonly used Method

CA definition IC reporting channels

The purpose of Content analysis in the ICR research

Content analysis of various IC reporting places

Berelson (1952,p. 55) Annual reports; To examine the level/pattern/factors of ICR; Kerlinger (1964, p.544) IC reports;

prospectus; Paisley (1969,p .133) To examine the impact of the ICR on capital market;

Website social media space;

Budd, Thorpe, and Donhew (1967, p.2)

Presentations to the analysts ;

To examine the information gap between the reporter and receiver/user;

Krippendorff (1980)

conference calls; Cole (1988)

Analysts report; Guthrie & Petty (2000) Interviews with

stakeholders

Literature review -The definition of Content analysis Definition

Berelson (1952,p. 55)

Content analysis is a research technique for the objective, systematic, and quantitative description of the manifest content of communication.

Kerlinger (1964, p.544)

Content analysis, while certainly a method of analysis, is more than that. It is… a method of observation. Instead of observing people’s behavior directly, or asking them to respond to scales, or interviewing them, the investigator takes the communications that people have produced and asks questions of the communications.

Paisley (1969,p .133) Content analysis is a phase of information-processing in which communications content is transformed, through objective and systematic application of categorization rules, into data that can be summarized and compared.

Budd, Thorpe, and Donhew (1967, p.2)

Content analysis is a systematic technique for analyzing message content and message handling-it is a tool for observing and analyzing the overt communication behavior of selected communications.

Krippendorff (1980) Content analysis is a research method for making replicable and valid inferences from data to their context, with the purpose of providing knowledge, new insights, a representation of facts and a practical guide to action.

Cole (1988) Content analysis is a method of analyzing written, verbal or visual communication messages.

Guthrie & Petty (2000)

Content analysis is a method that involves codifying qualitative and quantified information into pre-defined categories.

Literature review -The methods of ICR research Most commonly used method

CA definition IC reporting channels-communication contents

The purpose of Content analysis in the ICR research

Content analysis of various IC reporting Channels

Berelson (1952,p. 55)Kerlinger (1964, p.544)Paisley (1969,p .133)Budd, Thorpe, and Donhew (1967, p.2)Krippendorff (1980)Cole (1988)Guthrie & Petty (2000)

Annual reports; IC reports; prospectus; Website social media space; presentations to the analysts ; conference calls; Analysts report; Interviews with stakeholders

To examine the level/pattern/factors of ICR;

To examine the impact of the ICR on capital market;


Literature review -Critical analysis of ICR channels Channel Places Advantages Disadvantages Communicati

on types

Public Annual report Prepare for nearly all the stakeholders

Not immediate; historicalInformation;Biased disclosure;

One-way ;


on types



One-way ;

Public IC reports Cover comprehensive IC aspects Not immediate; Biased disclosure;Reporting before empirical study

One-way ;


on types



One-way ;


One-way ;

Public IPO Prospectus Cover the future IC information , more accurate IC aspects

Biased disclosure; limited audience (investors)

One-way ;


on types



One-way ;


One-way ;



One-way ;

Public Website; social media space

Immediate; not structural Difficult to track the IC information

Two-way;


on types



One-way ;


One-way ;



One-way ;



Two-way;

Private Presentations to the analysts ; conference calls;

Disclosure more IC information; More instant; involves in communication

Biased disclosure; Limited audience (analysts & investors); difficult to track due to the unclear laws

Two-way;


on types



One-way ;


One-way ;



One-way ;



Two-way;




Two-way;

Private Analysts report Show how analysts use the IC to evaluate the company; assist investment decision makers.

Don’t understand IC in a right way; threaten the information safety ;

One-way;


on types



One-way ;


One-way ;



One-way ;



Two-way;




Two-way;

Private Analysts report Show how analysts use the IC to evaluate the company; assist investment decision makers.

Don’t understand IC in a right way; threaten the information safety ;

One-way;

Private Interviews with stakeholders

More communication; the sources of information is flexible ; enrich the understanding of the organizational interactions

Time-consuming to collect data; Two-way;

Literature review-The numbers of ICR channels used

annual report

IC re-ports

prospec-tus

website social media space

presen-tations

Aanlysts report

inter-views

Se-ries1

52 1 3 1 1 5 3

5

15

25

35

45

55

Series1

num

bers

one-way communication

two-way communication

0 10 20 30 40 50 60 70

Series1

Literature review -The methods of ICR research Most commonly used method

IC definition IC reporting channels Inference VS The purpose of Content analysis in the ICR research

Content analysis of various IC reporting places

Berelson (1952,p. 55)Kerlinger (1964, p.544)Paisley (1969,p .133)Budd, Thorpe, and Donhew (1967, p.2)Krippendorff (1980)Cole (1988)Guthrie & Petty (2000)

Annual reports; IC reports; prospectus; Website social media space; presentations to the analysts ; conference calls; Analysts report; Interviews with stakeholders

To examine the level/pattern/factors of ICR;

To examine the impact of the ICR on capital market;


Literature review-Content analysis & ICRMain purposes Findings Good Bad

A1: To examine the level/pattern/factors of ICR

Relational capital is the most reported; there is no framework for IC reporting; be low and in qualitative rather than quantitative form

Raise the IC awareness (mission accomplished )Facilitate the work of standard

Mislead understand IC ;Stuck IC into frameworks and accounting;






A2: To examine the impact of the ICR on capital market

Highly significant effect for the ICD ;Good news increases share price and bad news decreases share price; Internal capital (not relational) has the greatest impact on share price

Examine the IC disclosure critically

Still use the annual reports






A2: To examine the impact of the ICR on capital market

Highly significant effect for the ICD ;Good news increases share price and bad news decreases share price; Internal capital (not relational) has the greatest impact on share price

Examine the IC disclosure critically

Still use the annual reports

A3: To examine the information gap between the reporter and receiver/user

Disclosure on intangibles is higher than the level of this information is used;

Facilitates the work of standard setter;Increase the relevance of information disclosure

Ignore the information safety

Literature review -Content analysis & ICR

Main purposes

A1 To examine the level/pattern/factors of ICR

A2 To examine the impact of the ICR on capital market

A3 To examine the information gap between the reporter and receiver/user

A1 A2 A3

Series1 59 5 3

5

15

25

35

45

55

65

num

bers

Research questions 1

How to identify the information gap between the organization and stakeholder /potential stakeholders through the two-way communication channels?

Literature review -The process of content analysis in the IC research

qualitative

quantitative

Good

bad

words

sentence

phrase

Literature review -Critical analysis of manual CA in ICD research IC terms list Disadvantages Coding rules Disadvantages Unit of analysis Disadvantages

IC triple model –Guthrie and Petty (1999)

Academic IC terms list and classification limits the diversity of practical IC information

-None disclosure -Obscure disclosure-Immaterial disclosure

The coding rules mislead the IC disclosure types; The functions of them are still in IC disclosure or not and measuring IC or not

-Word-phrase-sentence

Too small unit of analysis (word; phrase) will convey not enough IC context; too large (pages) will make the context blur Keywords

list – Bontis (2003)

-qualitative disclosures –quantitative disclosure

-Paragraph-page

-historical information-Forward-looking

-events IC index with explanation Schneider & Samkin (2008) -Good

-Bad-Neutral

Time-consuming

Literature review -Critical analysis of other content analysis methods

Methods types Advantages Disadvantages

Electronic search (Bontis, 2003)

Semi-automatic Save time and labor

(1)Difficult to recognize the synonyms;(2)Context of the keywords is ignored;(4) Fail to recognize the IC critically

Software ”Concordance” (Oliveras et al. 2008)

Automatic Save time and labor

(1)The accuracy is quite low(2) Fail to recognize the IC critically(3)Context of the keywords is ignored

Off-the-shelf tool “Factiva” (Lee& Guthrie, 2010)

Third party-aided method

Save time and labor

Bottom-up to identify the practical IC terms

(1)Difficult to be used in the public domain(2)The context is ignored(3)The context is ignored

Save time and labor

Research Questions 2

How to develop an intelligent mechanism for identifying IC ?

Methodology 51 IC reports

from the Banks

bad

Map IC keywords that describe IC elements with IC triple model

Good

Two –way communication

materials IC

taxonomy

Identify IC

Extract IC elements r

IC events

Intelligent tool

Neutral

IC events summarization

Existing situation

Expecting situation

Preliminary results

IC-related keywords about “training”

Human Capital Structural capital Relational capital

Employee/Staff Program Client

Specialist Courses Relationship

Skill Initiative Management school Full-time Technical External

… … …

Preliminary results

Training

Operator

Content

Internal; external; online

Full-time; employee; manager; specialist

Monitor; professional

Participant

Type

Place

Center; management

school

Skill; course; Initiatives

Preliminary resultsSample texts from websites Identified category Entity

Good An integrated community is cultivated by providing lifelong learning opportunities for people with mental disabilities, and encouraging social participation, during the program, bank employees have volunteered to tutor various institute courses including interpersonal skills and job interview techniques

Participant: mental disabilities Operator: employeesContent: courses; interpersonal skills; job interview techniques

Neutral HSBC Graduate Bermuda Development Program (GDP) is a two-year program which provides accelerated training and practical business experience.

Content: practical business experience

Bad HSBC staff training cut by 15% in past year. Participant: staff

Critical analysis of my methodology

Advantages Disadvantages Identify the practical IC terms Time- consuming in terms of IC

summarizationUnderstand IC in the context Intelligent tool far mare

perfect, results also need to be reviewed

Recognize the critical IC information

The taxonomy is difficult to be used in other industry

Significance of my research

Significance How to reach the goal

Recognize the critical IC information automatically

Intelligent mechanism

Increase the relevance of IC by communicating with the stakeholders

Examine the existing (good & bad) & expecting (good & bad) IC management through collecting data from the two-way communication channels

My future plan Months Plan Detailed action

1 Data collection 1. Identify the participants 2. Identify the materials that can be

used to analysis3. Compile the data 2

3 Prepare for a Journal/conference paper

1. Construct the paper structure 2. Modification and summation 4

5

6 Thesis writing and the final examination

1. Construct the thesis structure2. Writing 7

8

9

10

11

12

Publications

• Cai, L., E.Tsui, & C.F.Cheung. (2013). A Taxonomic approach to the identification of Intellectual Capital from company reports. Paper will present at the International conference on Software Engineering and Service(System)Sciences.

• Cai, L., E.Tsui, & C.F.Cheung. (2013). A Critical Analysis of Intellectual Capital Reports in The Banking Industry from 1994 to 2011. Paper abstract is accepted at the International Conference on Intellectual Capital, Knowledge Management and Organizational Learning (ICICKM).

Thank you very much!

confirmation ppt

Technology