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  1. 1 Humanities and Social Sciences: Latvia

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  1. 1 Titova N.

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  1. 1 2007

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THE INTELLECTUAL CAPITAL MANAGEMENT MOVEMENT: A NEW WAY TO THINK ABOUT THINKING

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Titova N.
Humanities and Social Sciences: Latvia
|
2007
|
issue 2(51)
18-36
EN
Financial performance measures derived from information in financial statements or other financial sources have been used by companies and organisations for many years. Such performance measures are based on historical and transaction-based information that does not take into account internally generated intangibles. There is the growing view that financial performance measures alone fail to provide adequate grounds for strategic decision-making. They need to be supplemented by non-financial measures. The focal point of calculation is intellectual capital as the key hidden source of wealth creation. Significant effort has gone into the search for methodologies and models to improve the management of intellectual capital, albeit with mixed success. The main reason for this is the nature of these assets and the fact that each business has its own particular knowledge mix, specific objectives, and market environment. This paper addresses the evolution and relevance of existing intellectual capital theories as pre-eminent guides to managing intangible assets.
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