Organisational Capital: Modelling, Measuring and Contextualising

309 Pages·2008·3.594 MB·English

by  Ahmed Bounfour

Organisational Capital
There is much debate as to how companies carry out their activities in the context
of new information and communication technologies infl uencing organisations
to decentralise and develop new managerial practices, including outsourcing and
networking. Recent theories have emphasised the importance of organising as a key
component for building corporate competitive advantage and scholars have looked
at this from a range of perspectives including in relation to intangible assets, human
capital, work training and the process dimension. Yet the concept of organisational
capital as such – in spite of its indubitable relevance and attractiveness – is still to
be clarifi ed until now.
In this book the subject is approached in four ways. First, from an analytical
perspective: what is the status of organisational capital as a concept, and how
is it defi ned? Second, from a ontological perspective: what type of (implicit)
orders can be designed and implemented around organisations? Third, from the
meas urem ent perspective: what kind of frameworks and what type of metrics
can be prototyped? And fi nally, the implementation perspective: how should
organisations integrate the organisational capital perspective in the defi nition and
implementation of their strategies for resources’ allocation. The book provides
the fi rst multifaceted and international effort from a broad perspective, aiming at
clarifying the concept of organisational capital and determining its analytical and
operational implications.
Covering a large area of theoretical and empirical evidence, this book will be
of great interest to students and researchers engaged with organisational design,
innovation modelling and change management, as well as consultants in IT and
organisational design.
Ahmed Bounfour is a professor at The University Paris-Sud, and the founder and
titular of the European Chair On Intellectual Capital Management.
Routledge Studies in Innovation, Organisation and
Technology
1 Innovation in the US Service 7 Industrial Innovation in Japan
Sector Edited by Takuji Hara, Norio
Michael P. Gallaher, Albert N. Kambayashi and Noboru
Link and Jeffrey E. Petrusa Matsushima
2 Information and 8 Managing and Marketing
Communications Technologies in Radical Innovations
Society Marketing new technology
E-Living in a digital Europe Birgitta Sandberg
Edited by Ben Anderson, Malcolm
Brynin and Yoel Raban 9 Mobility and Technology in the
Workplace
3 The Innovative Bureaucracy Edited by Donald Hislop
Bureaucracy in an age of fl uidity
Alexander Styhre 10 Energizing Management
Through Innovation and
4 Innovations and Institutions Entrepreneurship
An institutional perspective on the European research and practice
innovative efforts of banks and Edited by Milé Terziovski
insurance companies
Patrick Vermeulen and Jorg Raab 11 Innovating for Sustainability
Green entrepreneurship in personal
5 Knowledge and Innovation in mobility
Business and Industry Luca Berchicci
The importance of using others
Edited by Håkan Håkansson and 12 Organisational Capital
Alexandra Waluszewski Modelling, measuring and
contextualising
6 Knowledge and Innovation Edited by Ahmed Bounfour
A comparative study of the USA,
the UK and Japan
Helen Brown
Organisational Capital
Modelling, measuring and contextualising
Edited by Ahmed Bounfour
First published 2009
by Routledge
2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
Simultaneously published in the USA and Canada
by Routledge
270 Madison Avenue, New York, NY 10016
Routledge is an imprint of the Taylor & Francis Group, an informa
business
This edition published in the Taylor & Francis e-Library, 2008.
“To purchase your own copy of this or any of Taylor & Francis or Routledge’s
collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.”
© 2009 selection and editorial matter: Ahmed Bounfour; individual
chapters: the contributors
All rights reserved. No part of this book may be reprinted or reproduced or
utilised in any form or by any electronic, mechanical, or other means, now
known or hereafter invented, including photocopying and recording, or in
any information storage or retrieval system, without permission in writing
from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloging-in-Publication Data
Organisational capital : modelling, measuring and contextualising / edited
by Ahmed Bounfour.
p. cm.
Includes bibliographical references and index.
1. Organizational learning. 2. Corporate culture. 3. Human capital.
4. Intellectual capital. I. Bounfour, Ahmed.
HD58.82.O74295 2008
658.4’038—dc22 2008025830
ISBN 0-203-88521-X Master e-book ISBN
ISBN 13: 978-0-415-43771-4 (hbk)
ISBN 13: 978-0-203-88521-5 (ebk)
ISBN 10: 0-415-43771-4 (hbk)
ISBN 10: 0-203-88521-X (ebk)
Contents
List of illustrations vii
List of contributors x
Introduction 1
AHMED BOUNFOUR
1 Organizational capital: concept, measure, or heuristic? 5
J. C. SPENDER
2 The power and frailty of organisational capital 24
JAN MOURITSEN
3 An intellectual capital view of business model innovation 40
GÖRAN ROOS AND STEVE PIKE
4 Knowledge, recognition and “communautalism” 63
AHMED BOUNFOUR
5 Designing sequences for knowledge exchange: the
Hau-Ba model 76
AHMED BOUNFOUR AND GWENAËLLE GREFE
6 Dynamic capabilities of communities 109
AHMED BOUNFOUR
7 The dynamics of self-renewal: a systems-thinking to
understanding organizational challenges in dynamic
environments 119
PIRJO STÅHLE
8 Applying KVA analysis, risk simulation and
strategic Real Options: the shipyard case 147
THOMAS HOUSEL, SANDRA HOM, JOHNATHAN MUN AND
CHRISTINE L. KOMOROSKI
vi Contents
9 When IT does matter: setting up “value contracts”
between stakeholders 186
YVES CASEAU
10 Mapping value creation of organizational capital 202
BERNARD MARR
11 Attention management in organizations: four levels
of support in information systems 214
CLAUDIA RODA AND THIERRY NABETH
12 Leveraging organizational capital for innovation:
the process of marketing knowledge co-creation 234
FLORIAN KOHLBACHER
13 Organisational capital and competence building 258
ANJALI BAKHRU
14 IT, organisational capital and the reporting
(measurement) issue 268
AHMED BOUNFOUR
Index 289
Illustrations
Figures
2.1 Narratives of BS 7750 28
3.1 Level 1 Navigator 54
3.2 Level 2 Navigator 54
3.3 Effector plot 55
3.4 Effector plot at Level 1 55
3.5 Instrumental and intrinsic values of the resources 57
4.1 The new capitalism map: Transaction Regime versus
Community Regimes, Natural Communities versus Emerging
Communities 66
5.1 Key characteristics of knowledge and implications for action 81
5.2 Modalities of organising: the triple Ba approach 85
5.3 The building blocks of the Hau-Ba model 87
5.4 The specifi c Ba active in the foundry workers’ community 93
5.5 Hau-Ba model 94
5.6 Active Ba in the foundry workers’ community 101
5.7 Synthesis schema of the Hau-Ba model applied to the case of a
community of foundry workers 106
6.1 The articulation between Natural Communities and Emerging
Communities 111
6.2 Finland’s future path – the ‘Innovative Offer’: a tentative
modelling 115
6.3 A bundle of dynamic capabilities for Finland’s new path 117
7.1 The autopoietic nature of systems 133
8.1 DoD IT portfolio management decision-support interactions 150
8.2 Market value vs. book value over time (S&P 500) 151
8.3 Classifi cation of assets 152
8.4 NPS valuation framework 157
8.5 Measuring output 158
8.6 Comparison of traditional accounting versus process-based
costing 159
8.7 Comparison of outputs traditional accounting benefi ts
(revenues) versus process-based value 160
viii Illustrations
8.8 Integrated Risk Analysis 162
8.9 Terrestrial 3D laser scanning market forecast (hardware,
software and services) 167
8.10 NSRP Ship Check Data project preliminary results cost/time
savings 168
8.11 SIS laser scanning equipment 169
8.12 Sample point cloud image (USNS ship exterior) 170
8.13 Digital 3D model of USNS superstructure 171
8.14 Overall PLM market growth history and forecast 172
8.15 Evolution of PLM 172
8.16 Planning yard core processes 174
8.17 Potential reduction of work days for “Conduct ship check”
process 179
8.18 Potential reduction of work days for “Generate Drawings”
process 180
8.19 COA strategic options 181
9.1 Effi ciency value related to quality of service 196
10.1 Apple tree analogy 203
10.2 Organizational resources 204
10.3 Classifi cation of intangible resources 204
10.4 Kaplan and Norton’s strategy map template 206
10.5 Value creation map template 208
10.6 Value creation map vs. Balanced Scorecard 208
10.7 Value creation map for Novo Nordisk 210
10.8 Value Creation Reporting in Novo Nordisk 211
12.1 Knowledge-based marketing processes 235
12.2 Knowledge-based marketing processes (integrated model) 235
12.3 The marketing knowledge co-creation process 247
12.4 The marketing knowledge co-creation process and ba 248
14.1 B2B and intangibles categories 280
14.2 Organisational capital: key processes 282
Tables
4.1 Transactional regime, community regimes, types of resources
and IPRs 73
5.1 The Hau-Ba Model, type of organisational regime, barriers and
practices 90
5.2 What are the exchanges modalities that characterise the saving
of the intra-organisational technical memory? 92
5.3 What are the exchanges modalities that characterise the saving
of the intra-organisational technical memory? 93
5.4 The fulfi lment of the Hau cycle inside the Ba 103
7.1 The paradigms of systems thinking 123
7.2 Self-organizing systems according to Prigogine 128
Illustrations ix
7.3 Description of self-referential systems 139
8.1 Performance measurement models 154
8.2 KVA metrics 160
8.3 Approaches to KVA calculation 161
8.5 Potential DoD applications of KVA and Real Options 165
8.6 Discussion of KVA methodology used in case study 175
8.7 Case analysis – baseline data assumptions 176
8.8 Core planning yard process overview 177
8.9 KVA results – analysis of costs 178
8.10 KVA results – analysis on ROI 181
8.11 Summary of Results 183
14.1 Elements of relational capital 281
14.2 Elements of market capital 281
14.3 A possible structure for intangibles (organisational) B2B
reporting: the horizontal dimension 283
14.4 A proposed structure for an ad hoc annex on B2B (intangibles)
cross-sectoral reporting 283
14.5 A possible structure for intangibles (organisational) B2B
reporting: the vertical dimension 285
Boxes
5.1 The Hau-Ba in case 1: the ‘6 A model’ 105
14.1 A review of recent researches on IT, IS and competitive
strategies 273
14.2 A review of the literature on the importance of organisational
processes 274