The dynamics of value creation: mapping your intellectual performance drivers

The paper highlights the importance of visual representations of strategic intent in order to understand how organizational resources – especially intangible assets and intellectual capital – are used to create value. Based on the literature the paper provides a taxonomy of organizational value drivers. Grounded in the resource‐based view of the firm, which argues that organizational resources or assets are bundled together and interdependent, it then highlights shortcomings in the strategy map approach based on the balanced scorecard. The paper then introduces the value creation map that utilizes both direct and indirect dependencies to map value creation. It is suggested that this approach complements the strategy map approach by extending its view of value creation from direct to both direct and indirect dependencies. Subsequently, the paper presents a case study of how the value creation map was applied to understand the new product development process in a leading furniture manufacturing firm.

[1]  Bernard Marr,et al.  Strategic management of intangible value drivers , 2005 .

[2]  J. Mouritsen,et al.  The 2nd wave of knowledge management: The management control of knowledge resources through intellectual capital information , 2005 .

[3]  Bernard Marr,et al.  The balanced scorecard and intangible assets: similar ideas, unaligned concepts , 2004 .

[4]  Bernard Marr,et al.  Measuring knowledge assets – implications of the knowledge economy for performance measurement , 2004 .

[5]  R. Kaplan,et al.  Information Resources , 2004 .

[6]  D. Larcker,et al.  Coming up short on nonfinancial performance measurement. , 2003, Harvard business review.

[7]  Hanne Nørreklit.  The Balanced Scorecard: what is the score? A rhetorical analysis of the Balanced Scorecard , 2003 .

[8]  Andy Neely,et al.  The Performance Prism: The Scorecard for Measuring and Managing Business Success , 2002 .

[9]  Paul W. Beamish,et al.  Survival and Profitability: The Roles of Experience and Intangible Assets in Foreign Subsidiary Performance , 2002 .

[10]  S. McGaughey,et al.  Strategic Interventions in Intellectual Asset Flows , 2002 .

[11]  J. Barney,et al.  The resource-based view of the firm: Ten years after 1991 , 2001 .

[12]  B. Lev.  Intangibles: Management, Measurement, and Reporting , 2001 .

[13]  R. Kaplan,et al.  Having trouble with your strategy? Then map it. , 2000, Harvard business review.

[14]  Hanne Nørreklit.  The Balance on the Balanced Scorecard: A Critical Analysis of Some of Its Assumptions , 2000 .

[15]  E. Ziegel,et al.  The Balanced Scorecard , 1998 .

[16]  S. Ghoshal,et al.  Social Capital, Intellectual Capital, and the Organizational Advantage , 1998 .

[17]  Johan Roos,et al.  Exploring the concept of intellectual capital (IC) , 1998 .

[18]  L. Edvinsson.  Developing intellectual capital at Skandia , 1997 .

[19]  A. Brooking.  The management of intellectual capital , 1997 .

[20]  J. Roos,et al.  Measuring your company's intellectual performance , 1997 .

[21]  D. Teece,et al.  Managing Intellectual Capital: Licensing and Cross-Licensing in Semiconductors and Electronics , 1997 .

[22]  R. Kaplan,et al.  Linking the Balanced Scorecard to Strategy , 1996 .

[23]  R. M. Hall,et al.  A framework linking intangible resources and capabilities to sustainable competitive advantage , 1993 .

[24]  Margaret A. Peteraf.  The cornerstones of competitive advantage: A resource‐based view , 1993 .

[25]  J. B. Quinn,et al.  Intelligent Enterprise: A Knowledge and Service Based Paradigm for Industry , 1992 .

[26]  R. Hall.  The strategic analysis of intangible resources , 1992 .

[27]  R. Grant.  The Resource-Based Theory of Competitive Advantage: Implications for Strategy Formulation , 1991 .

[28]  J. Barney.  Firm Resources and Sustained Competitive Advantage , 1991 .

[29]  Karel Cool,et al.  Asset stock accumulation and sustainability of competitive advantage , 1989 .

[30]  Richard Hall,et al.  The Management of Intellectual Assets: A New Corporate Perspective , 1989 .

[31]  D. Aaker.  Managing Assets and Skills: The Key to a Sustainable Competitive Advantage , 1989 .

[32]  B. Wernerfelt,et al.  A Resource-Based View of the Firm , 1984 .

[33]  S. Winter,et al.  An evolutionary theory of economic change , 1983 .

[34]  Theodore W. Schultz,et al.  Investing in People: The Economics of Population Quality. , 1982 .

[35]  E. Penrose.  The theory of the growth of the firm twenty-five years after , 1960 .

[36]  Peter F. Drucker.  Long-Range Planning---Challenge to Management Science , 1959 .

[37]  V. Ridgway.  Dysfunctional Consequences of Performance Measurements , 1956 .

[38]  M. Connolly.  Human Capital , 2004 .

[39]  J. Barney.  Is the Resource-Based “View” a Useful Perspective for Strategic Management Research? Yes , 2001 .

[40]  Richard L. Priem,et al.  Is the Resource-Based “View” a Useful Perspective for Strategic Management Research? , 2001 .

[41]  D. Teece.  Managing Intellectual Capital: Organizational, Strategic, and Policy Dimensions , 2000 .

[42]  D. Larcker,et al.  Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction , 1998 .

[43]  R. Kaplan,et al.  Using the balanced scorecard as a strategic management system , 1996 .

[44]  野中 郁次郎,et al.  The Knowledge-Creating Company: How , 1995 .

[45]  T. Roehl,et al.  Mobilizing invisible assets , 1987 .

[46]  R. Rumelt.  Towards a Strategic Theory of the Firm , 1984 .

[47]  S. Lippman,et al.  Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition , 1982 .

[48]  Søren Aggebo,et al.  Kenneth R. Andrews, The Concept of Corporate Strategy, Dow Jones-Irwin, Inc. Homewood, Illinois, 1971, 245 s. , 1972 .

[49]  K. Andrews.  The Concept of Corporate Strategy , 1971 .

[50]  A. Marshall,et al.  Principles of Economics , 1890 .