From intellectual capital to company's competitiveness

Purpose - Researches made in the last 25 years presented knowledge as a dynamic and fluid resource, critical for company's success. Although there are some remarkable attempts of measuring knowledge assets and intellectual capital of a firm, their analysis tend to be static. They are either reflecting the current stage of development or they are highlighting an average performance. Besides, they overlook the fact that company's competitiveness depends on competitors' characteristics and actions. Starting from these, we aim to develop a benchmarking tool capable of capturing company's competitive position and future evolution, based on its efficiency of using intellectual capital. Design/methodology/approach - Developing an exploratory research, we combine the qualitative with the quantitative analysis. We create a composite index, entitled Competitiveness Intellectual Capital Index (CICI), for 20 Romanian companies listed on the Bucharest Stock Exchange (BSE). Our longitudinal study has three phases. First, we establish CICI's value during 2009 - 2012, for each company. Then, we determine the average annual growth rate registered during 2009 - 2012. In the third stage, we develop a strategic knowledge map, using CICI's value and the average annual growth rate. Based on these coordinates, we split the companies in four categories: leaders, chasing stars, followers and traditionalists. Originality/value - This methodology brings forward the relative character of intellectual capital and its long term relationship with company's competitiveness. First of all, it reflects that intellectual capital means more than money; it's about creating, disseminating and using knowledge; it's about valuing company's human resources and its relationships with all the stakeholders. Secondly, it highlights that a company is competitive only when it manages its knowledge assets more efficiently than its competitors. Taking this into account, CICI is the first instrument that evaluates a company's intellectual capital by comparing its performance with the one registered by the direct and indirect competitors. Practical implications - The outcomes of developing and using this instrument focus on strategic issues. First of all, by using CICI, managers can have a complete image on what's happening in the environment in which they operate. Secondly, they can notice where do they stand (compared with their competitors and companies from different fields of activity); they can identify potential threats and opportunities, they can monitor change and they can develop future strategies. In other words, it may serve as a managerial early warning system.