The Intellectual Capital Navigator as a Strategic Tool

The Intellectual Capital Navigator as a Strategic Tool

Göran Roos (Nanyang Technological University, Singapore)
DOI: 10.4018/978-1-4666-4753-4.ch001


This chapter outlines a grounded and proven tool for evaluating the effectiveness with which firms deploy the resources at their disposal. The chapter draws on the resource-based view of the firm literature as well as the intellectual capital literature combined with systems theory and matrix algebra to develop a theoretical lens and a practical tool for the optimization of the effectiveness by which the firm deploys its resources. The resources covered in the chapter are both normal monetary and physical resources as well as relational, organisational, and human intellectual capital resources capturing both the tangible and intangible aspects of these resources. The chapter takes a step-by-step approach and illustrates each step as well as providing guidelines for how to interpret the results. The practicality and validity of the tools have been proven through applications in more than one thousand firms.
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One of the key questions that need to be addressed both from a managerial and operational point of view as well as from a strategic analysis point of view is “are the firm’s resources put to use in such a way that I have maximised the firm’s value creating potential? In this chapter we will outline a way to answer this important question.

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