Use of intellectual capital as a surrogate for productivity measurement

Use of intellectual capital as a surrogate for productivity measurement

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Article ID: iaor201525714
Volume: 15
Issue: 3
Start Page Number: 357
End Page Number: 380
Publication Date: Apr 2015
Journal: International Journal of Productivity and Quality Management
Authors: , ,
Keywords: knowledge management, information, quality & reliability
Abstract:

The ongoing trends in global outsourcing and use of knowledge workers greatly impacted how productivity is measured. As a result, the research explores a possible surrogate for productivity measurement, especially at the organisational level. In this study, the term intellectual capital or IC is selected. The research methodology applies the correlation analysis which pairs the IC with key productivity indicators at the organisational levels. The correlation analysis shows that all selected key organisational productivity indicators such as value‐added labour productivity demonstrate the positive relationships with the IC. In conclusion, under the emerging changes in business environment which the intangible assets have been very influential in an organisation's value creation, it is possible to use the IC as a surrogate for productivity measurement.

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