Proceedings of the 3rd European Conference on Intellectual Capital

Intellectual Capital Management: Case Study Portugal
Versus Romania
Florinda Matos 1 , Albino Lopes 2 , Marta-Christina Suciu 3 and Alex Ghitiu 3
1
ISCTE – University Institute <strong>of</strong> Lisbon, Lisboa, Portugal
2
ISCSP - Technical University <strong>of</strong> Lisbon, Portugal
3
Academy <strong>of</strong> Economic Studies Bucharest, Romania
Florinda.Matos@iscte.pt
alopes@iscsp.utl.pt
suciuchristina@yahoo.com
alexghitiu@yahoo.com
Abstract: The new economy requires new approaches and methods to measure both tangible and intangible
assets. Well-designed indicators, based on a coherent <strong>the</strong>oretical framework, are like words and syntax <strong>of</strong> a
language. This can help managers to develop a new way <strong>of</strong> thinking and to understand better <strong>the</strong> relationship
between people within <strong>the</strong>ir organizations and how <strong>the</strong>y can make pr<strong>of</strong>its in <strong>the</strong>ir company based mostly on <strong>the</strong>
value added by intangible assets and intellectual capital. In most <strong>European</strong> countries, <strong>the</strong> management <strong>of</strong>
intellectual capital is at a very early stage, regarding <strong>the</strong> awareness <strong>of</strong> <strong>the</strong> critical role it has in more competitive
countries. Appeal to intangible assets to create and develop value added is a significant challenge for
pr<strong>of</strong>essionals in countries such as Portugal and Romania. Many organizations, both from <strong>the</strong> national and
international level are concerned with <strong>the</strong> promotion within <strong>the</strong>m <strong>of</strong> new models <strong>of</strong> intellectual capital reporting
and <strong>of</strong> monitoring <strong>the</strong> effectiveness <strong>of</strong> <strong>the</strong> policies <strong>the</strong>y develop in this direction. We believe that both in Portugal
and Romania, such a scientific approach applied locally, is quiet novelty mostly from <strong>the</strong> practical point <strong>of</strong> view. In
<strong>the</strong> case <strong>of</strong> Portuguese and Romanian companies, with numerous problems <strong>of</strong> competitiveness, <strong>the</strong> acceptance
<strong>of</strong> intellectual capital management implies <strong>the</strong> existence <strong>of</strong> quantifiable returns that justify <strong>the</strong> investment.
However, in <strong>the</strong>se countries, we can find cases <strong>of</strong> successful companies with business activities directed to <strong>the</strong>
permanent innovation, which appears associated with a long-run sustainable investment in <strong>the</strong> strategic
management <strong>of</strong> talent and creativity. The aim <strong>of</strong> this paper is to present an empirical research conducted with
Romanian and Portuguese Small and Medium-sized Enterprises (SMEs), which seem to demonstrate a clear
association between <strong>the</strong> intellectual capital management and organizational performance. Ano<strong>the</strong>r objective is to
apply <strong>the</strong> Intellectual Capital Model - ICM developed by <strong>the</strong> first two authors (Matos and Lopes) in 2008 for
Portugal in different business and cultural contexts (Portuguese and Romanian). The research is based also on
<strong>the</strong> categorization methodology defined by Yin (2003) as a multiple case study. The sample consists <strong>of</strong> some
SMEs chosen both from Portugal and Romania that develop <strong>the</strong>ir economic activity in <strong>the</strong> production <strong>of</strong> tangible
and intangible assets. The paper presents briefly and compares <strong>the</strong> results obtained in research carried out in
both countries. Despite <strong>the</strong> differences between <strong>the</strong> two countries, <strong>the</strong> findings indicate <strong>the</strong> strategic need to
invest in intellectual capital management as a key element <strong>of</strong> improving <strong>the</strong> SMEs organizational performance
and <strong>of</strong> assuring and developing a long-run sustainable competitive advantage for SME. This research aims to
contribute to <strong>the</strong> international recognition <strong>of</strong> intellectual capital management as a new paradigm <strong>of</strong> business
management. Our research is at a starting point but it might be a useful prerequisite for possible future <strong>the</strong>oretical
and empirical investigations. This paper seeks to develop both in Portugal and Romania a framework <strong>of</strong> IC
reporting by starting to learn and to adapt some best practices identified abroad.
Keywords: intellectual capital management, SMEs, talent management, knowledge-based economy, intangible
assets, competitive advantage
1. Introduction
According to <strong>the</strong> new paradigm, intellectual capital is seen to have taken progressively more <strong>of</strong> a
leading role in companies as it is through it that information can be changed into knowledge.
However, considering <strong>the</strong> current context, where <strong>the</strong> markets become more competitive, forcing
companies to be constantly innovating, strategic management <strong>of</strong> intellectual capital seems to be <strong>the</strong>
most valuable asset, as <strong>the</strong> main driver <strong>of</strong> competitive advantage.
Competitiveness requires that companies differentiate through continuous innovation. Therefore,
knowledge has a vital role in all types <strong>of</strong> innovation.
In Europe, SMEs are an important driver <strong>of</strong> economic growth, and <strong>the</strong>ir importance as a source <strong>of</strong>
innovation and technological development has been rediscovered. Fur<strong>the</strong>rmore, SMEs may gain
competitive advantage if <strong>the</strong>y use knowledge effectively, making intellectual capital management
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