Intellectual capital transformation evaluating model

PurposeThe purpose of this paper is to present a framework that is developed for analysis of intellectual capital transformation into companies’ value, including an identification of the key factors of this process.Design/methodology/approachThe paper employs intellectual capital on the intersection of value‐based management (VBM) and the resource‐based view (RBV). Starting from a review of the results provided in the literature regarding intellectual capital (IC) evaluation and its link with firm performance, a system of proxy indicators related to IC transformation in both concepts has been designed. The evaluation ability of the developed model was justified using regression analyses.FindingsA detailed algorithm for intellectual capital evaluation in terms of input‐outcome transformation. The intellectual capital transformation evaluating model (ICTEM) provides a holistic view of intellectual resources as companies’ strategic investments.Research limitations/implicationsThe paper emphasizes that the ICTEM framework could be mostly applied for the analysis of a firm as a typical representative of the industry or the country. In that sense it is not applicable for specific feature analysis of a company.Practical implicationsThe paper highlights the ICTEM as a tool of investment decisions, mostly taking into account common trends, the prospects of industries, and economies’ development.Originality/valueThe ICTEM provides the ostensive framework of intellectual capital transformation analysis using a statistical approach.