Combining the measurement and management approaches: the fuzzy logic methodology

The chapter focuses on the use of a well-known quantitative method, the Fuzzy Logic Methodology, to measure Intellectual Capital (IC), defined as a dynamic system of intangible, knowledge-based resources and activities capable of creating value for stakeholders. Considerable attention has been paid over the years to two supposed alternative strategies seen to deal with IC, namely measurement and management. In the chapter we argue that the main advantage of measuring IC through the fuzzy expert system model is its capability to combine management and measurement views, to reflect the newest concepts regarding IC and to take into consideration the ‘vague’ interactions between IC categories. Thus, the aim of the chapter is to combine measurement and management views by presenting a different way to determine a comprehensive IC index through applying fuzzy logic as a system beneath the fuzzy expert system (FES) model.