Proceedings of the 8th International Conference on Intellectual ...

Gabriel Prananingrum Aryanindita and Andy Susilo Lukito Budi
This paper aimed to proposed new model <strong>of</strong> university rankings by <strong>the</strong>ir intellectual capital. The study
conducted by first, exploring <strong>the</strong> components <strong>of</strong> IC consisting <strong>of</strong> human capital, structural capital and
relational capital that been proposed by Bodnar et.al (2008). Three components are breaking down
into indicators <strong>of</strong> university's performance assessment. Fur<strong>the</strong>rmore, we proposed <strong>the</strong> university
rankings model based on <strong>the</strong>se indicators. Second, we analyzed <strong>the</strong> existing university rankings. We
used Times Higher Education (THE) University World Ranking components to compare.
The rest <strong>of</strong> this paper is composed according to <strong>the</strong> above framework. First, we present some
information about IC concept, implementation <strong>of</strong> IC in university, and THE ranking method. Fur<strong>the</strong>r,
we discuss <strong>the</strong> comparison <strong>of</strong> IC model and THE model and come up with suggestion for fur<strong>the</strong>r
research.
2. Literature review
2.1 Definition <strong>of</strong> intellectual capital
In <strong>the</strong> last twenty years, <strong>the</strong>oretical and practical framework <strong>of</strong> intangible assets has been in a large
debate. The practice <strong>of</strong> business found key point that knowledge becomes competitive advantage.
Fur<strong>the</strong>rmore, <strong>the</strong> development <strong>of</strong> competence-based <strong>of</strong> <strong>the</strong> firm, resource-based <strong>of</strong> <strong>the</strong> firm,
management <strong>of</strong> intangible assets as competitive source and multidimensional framework are <strong>the</strong>
explanatory aspect in performance diversity.
The development <strong>of</strong> IC is focusing on determinant intangible asset in organizational succeed.
Especially in creating value in intangible asset and knowledge improvement (Nonaka and Takeuchi,
1995). Galbraith is people who use <strong>the</strong> word (intellectual capital) for <strong>the</strong> first time. He wrote a letter to
a friend, Michael Kalecki, in 1969. He wrote “I wonder if you realize how much those <strong>of</strong> us <strong>the</strong> world
around haved owed to <strong>the</strong> intellectual capital you have provided over <strong>the</strong>se last decades” (Hudson,
1993).
Then, <strong>the</strong> intellectual capital becomes main issue in <strong>the</strong>oretical and empirical research. A number <strong>of</strong>
classifications <strong>of</strong> IC have been proposed by scholars but usually accepted constituent parts are
human, structural and relational capital (Intellectual Asset and Value Creation, OECD, 2006).
Intellectual Capital
Figure 1: The components <strong>of</strong> Intellectual Capital (Intellectual Assets and Value Creation, OECD,
2006, p13-14)
Human capital (HC) is <strong>the</strong> heart <strong>of</strong> IC. HC bring <strong>the</strong> potential <strong>of</strong> personnel’s activity to augment
competitiveness and to bring an organization to unique one. IC is human-based and particularly refers
to <strong>the</strong> use <strong>of</strong> skills and generation <strong>of</strong> new knowledge. It is an intangible asset consisting <strong>of</strong>
experience, thoughts, creative ability, intelligence and a set <strong>of</strong> insights which are known by a person
or a group <strong>of</strong> people in company (Maksimova and Tikhomirova, 2008).
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