Measures for organizations engaged in a knowledge economy
Housel, Thomas J.
MetadataShow full item record
Purpose - The financial reporting practices of modern day organizations operating in a knowledge-based economy will eventually change as intangible assets increasingly become such organizations’ most valuable assets. Financial reports need to be supported by intangible performance metrics, in order to ensure that the reports are rigorously interpreted and applied, and if any issues or problematic practices exist, they may be identified and resolved in a timely fashion. This paper aims to focus on this issue. Design/methodology/approach - This paper provides support for the use of knowledge value-added (KVA) metrics to assist firms in better understanding, evaluating, and reporting intangible assets, and to provide them with more transparency in their operations. Currently, the general consensus seems to be that before any real progress can be made in converging intangible performance metrics with traditional financial reports, modern day organizations need to more actively depict their intangible assets. Findings - A case study demonstrated how KVA measures support financial ratios of a company as well as providing for a better comparison of one industry with another. Further, from this case study the KVA methodology provided an approach for objectively obtaining information about the performance of knowledge assets as well as a means of benchmarking organizations operating in a knowledge economy. Research limitations/implications - Future research should empirically test whether an organization’s performance and operations is better captured by the added value of intangible measures, such as KVA metrics. Originality/value - The paper shows that implementing intangible asset measures, along with traditional financial measures may provide a better overall platform that is understandable to managers, creditors, investors, and public institutions.
The article of record as published may be found at http://dx.doi.org/10.1108/14691930910977770
Showing items related by title, author, creator and subject.
Rodgers, Waymond; Housel, Thomas J. (2006-06);Global reporting practices will eventually change as the dominance of intangible assets is increasingly dominating organizations most valuable commodities. Yet, the general consensus seems to be that before any real ...
Naval Postgraduate School Center for Homeland Defense and Security (CHDS) (Monterey, California. Naval Postgraduate SchoolCenter for Homeland Defense and Security, 2009-01);January 2009. In this issue of Homeland Security Affairs we offer one essay that outlines some of the important homeland security issues of 2008 and a set of essays that describes a potentially significant change in the ...
Hudgens, Bryan; Petit, Carey; Jordan, Rita; Mable, Leon (Monterey, California. Naval Postgraduate School, 2006); NPS-AM-06-075The following article is taken as an excerpt from the proceedings of the annual Acquisition Research Program. This annual event showcases the research projects funded through the Acquisition Research Program at the Graduate ...