Purpose – The purpose of the paper is to analyze, from a methodological point of view, the Value Added Intellectual Coefficient (VAIC), introduced by Pulic (1998; 2000; 2008), as a measure of Intellectual Capital Efficiency (ICE).Our paper examines some conceptual problems regarding the VAIC methodology. We describe VAIC through its calculation formulas to establish what exactly it measures. We argue also that, in order to appreciate all the aspects of the business performance, the VAIC methodology has to be used together with other performance evaluation measures. Design/methodology/approach – Other authors discuss the critical aspects of the VAIC method (Andriessen, 2004; Stahle et al., 2011). Our paper examines some conceptual problems regarding the VAIC methodology. Furthermore we argue that the performance measure proposed by Pulic (VAIC) is not a genuine rival of traditional methodologies (for example the EVA). In fact, VAIC and EVA measure different aspects of the performance and, therefore, may usefully live together in a context in which the performance is measured through multicriteria methodologies, such as the Balanced Scorecard (Kaplan and Norton, 1992), Skandia Navigator (Edvinsson and Malone, 1997) or Intangible Asset Monitor (Sveiby, 1997).Originality/value – If not properly interpreted, the VAIC methodology for measuring the capital efficiency is not valid because it has some contradictions. The study described in the paper contributes to better understand: (i) the way to calculate and to interpret the efficiency of Intellectual Capital in a correct manner; (ii) the role of Intellectual Capital on firm multicriteria performances.Practical implications – The main results of the work are: (i) the correct placing of Pulic’s contribution into the Accounting Principles Theory; (ii) the manner for using the VAIC methodology in a multicriteria performance evaluation. Both aspects have relevant implications for business practice.
Some Methodological Remarks on the Concept of Value Added Intellectual Coefficient (VAIC)
IAZZOLINO, Gianpaolo;Laise D.
2012-01-01
Abstract
Purpose – The purpose of the paper is to analyze, from a methodological point of view, the Value Added Intellectual Coefficient (VAIC), introduced by Pulic (1998; 2000; 2008), as a measure of Intellectual Capital Efficiency (ICE).Our paper examines some conceptual problems regarding the VAIC methodology. We describe VAIC through its calculation formulas to establish what exactly it measures. We argue also that, in order to appreciate all the aspects of the business performance, the VAIC methodology has to be used together with other performance evaluation measures. Design/methodology/approach – Other authors discuss the critical aspects of the VAIC method (Andriessen, 2004; Stahle et al., 2011). Our paper examines some conceptual problems regarding the VAIC methodology. Furthermore we argue that the performance measure proposed by Pulic (VAIC) is not a genuine rival of traditional methodologies (for example the EVA). In fact, VAIC and EVA measure different aspects of the performance and, therefore, may usefully live together in a context in which the performance is measured through multicriteria methodologies, such as the Balanced Scorecard (Kaplan and Norton, 1992), Skandia Navigator (Edvinsson and Malone, 1997) or Intangible Asset Monitor (Sveiby, 1997).Originality/value – If not properly interpreted, the VAIC methodology for measuring the capital efficiency is not valid because it has some contradictions. The study described in the paper contributes to better understand: (i) the way to calculate and to interpret the efficiency of Intellectual Capital in a correct manner; (ii) the role of Intellectual Capital on firm multicriteria performances.Practical implications – The main results of the work are: (i) the correct placing of Pulic’s contribution into the Accounting Principles Theory; (ii) the manner for using the VAIC methodology in a multicriteria performance evaluation. Both aspects have relevant implications for business practice.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
