Intellectual Capital Value To Determine The Value Of The Company Model

Knowledge, which is a dominant factor in 21st century, is graduallyreplacing the traditional factors of production, i.e. capital, labor andland, and becoming the chief resource of the company value creation.In this process, intellectual capital plays an important role as it affectsboth the implementation of the corporate strategy and the long termsustainability of the business operations. Therefore, academe andcorporations shows great enthusiasm in intellectual capital. Aroundthe topic of the relationship between intellectual capital and companyvalue, I in this thesis explore the creation, transformation and valuerealization of intellectual capital inside the company as well asmeasurement and assessment of it.This thesis consists of three parts: in the first part,I demonstratehow the conception of intellectual capital came into being and itsdevelopment. Furthermore, I give an analysis of what the concept ofintellectual capital contains. I also make use of the already existedresearch results on this topic to reveal flaws of the current theories,then further divide intellectual capital, in a horizontal way, into humancapital, structure capital and customer capital as well as4longitudinally into individual intellectual capital, team intellectualcapital and organization intellectual capital to explore the resource ofits value. Building the model on relationship between intellectualcapital and corporate value I put forward the theoretical frameworkusing the value network theory to explain the relationship. In thesecond part, firstly I establish the microcosmic mechanism of valuecreation inside the company—knowledge flow, then build the valuetransformation model of the three integrants to demonstrate how thedifferent forms of intellectual capital contribute to the corporate valueand realize the value transformation based on the knowledge. In partthree, with the groundwork of the scholars' model of evaluating theintellectual capital, I redesign the variables from the view ofknowledge management to test the relationship among the keyintegrants and how they advance the corporate value together.Studies on relationship between intellectual capital and companyvalue are almost untouched so far. I in this thesis try to study on thevalue realization process of intellectual capital through integrating therelevant subjects such as economics, administration, andorganizational behaviorism, etc. In this thesis, the transformationorganism and the relevant factors of intellectual capital are analyzedand explored. However, there still are some places in this researchready for modification for the limitation of time, length of this thesisand my capability. Therefore, further and deeper research is requiredin this area.