This document discusses the importance of intellectual capital and innovation in the agricultural insurance sector. It begins by outlining the importance of insurance services for agricultural producers and sectors. Intellectual capital is defined as the knowledge, skills, and experiences of employees, while innovation refers to new processes, services, marketing methods, and organizational changes. The relationship between intellectual capital and innovation is then explored, finding they have a reciprocal relationship that can boost company performance. Specifically within insurance companies, intellectual capital and innovation are crucial assets that allow companies to develop new services, gain competitive advantages, and better serve customer needs. Overall, the document argues that effectively managing intellectual capital and fostering innovation are important for the success and sustainability of agricultural insurance companies.
Managing the intellectual capital of an organisation is more important than ever. View to see how to best manage your intellectual capital so that it maximizes your company's bottom line
Managing the intellectual capital of an organisation is more important than ever. View to see how to best manage your intellectual capital so that it maximizes your company's bottom line
HireLabs Perspective: Increasing Vc Returns In Talent Assessment FirmsHireLabs Inc.
The VCs must ask themselves if they have CEOs who are capable of driving companies
as the recession bottoms.
Looking at the current slowdown in non-farm employment and the subsequent rebound strategies, HireLabs can forecast a recovery in the international labor market - lead by the US - sometime around Feb 2010 (Q1 2010).
Very few CEOs of venture-backed companies have experience of riding a company
through a recession successfully.
The questions that investors should ask there CEOs is
whether they are able to monetize on market-indicators as the recovery approaches.
Investors who are looking to capitalize on the recovery should predominantly understand the teams that are running the companies, and assess the teams’ ability to analyze and perform the market indicators....
Considerations for a sustainable corporate venture program by Robert Ackerma...the Hartsook Letter
Reputation is Key to the Success/Failure of a CVC Program
* Corporate Venturing is Here to Stay
* Increased Scrutiny Requires Deliberate Steps
* Model will Evolve Based on Lessons Learned
* Working with the Venture Community is Critical
* Every Transaction, Every Engagement, Every Partnership contributes to the Corporate Reputation
The study on success factors in strategic corporate venturing is based on extensive qualitative and quantitative market research among corporate venturing units and independent venture capitalists. The research project was established in close collaboration with Berlin Institute of Technology and the Steinbeis University Berlin.
Buy-side M&A - Qualifying Your Seller & Finding ValueFirmex
Watch Full Webinar here: http://www.firmex.com/Qualifying-Your-Seller-Finding-Value-Sign-Up
How to avoid surprises and common mistakes, analyzing business issues in due diligence and how data rooms are playing a role in the due diligence process
The present book is a great step in forward direction of Indian Insurance sector ; and I have no doubt that after studying this book in detail and getting through the examination successfully, the insurance agent will gain substantially in accomplishing the tasks that are assigned to him or her. I would keenly look forward to its huge success in the Indian insurance domain in the days to come.
HireLabs Perspective: Increasing Vc Returns In Talent Assessment FirmsHireLabs Inc.
The VCs must ask themselves if they have CEOs who are capable of driving companies
as the recession bottoms.
Looking at the current slowdown in non-farm employment and the subsequent rebound strategies, HireLabs can forecast a recovery in the international labor market - lead by the US - sometime around Feb 2010 (Q1 2010).
Very few CEOs of venture-backed companies have experience of riding a company
through a recession successfully.
The questions that investors should ask there CEOs is
whether they are able to monetize on market-indicators as the recovery approaches.
Investors who are looking to capitalize on the recovery should predominantly understand the teams that are running the companies, and assess the teams’ ability to analyze and perform the market indicators....
Considerations for a sustainable corporate venture program by Robert Ackerma...the Hartsook Letter
Reputation is Key to the Success/Failure of a CVC Program
* Corporate Venturing is Here to Stay
* Increased Scrutiny Requires Deliberate Steps
* Model will Evolve Based on Lessons Learned
* Working with the Venture Community is Critical
* Every Transaction, Every Engagement, Every Partnership contributes to the Corporate Reputation
The study on success factors in strategic corporate venturing is based on extensive qualitative and quantitative market research among corporate venturing units and independent venture capitalists. The research project was established in close collaboration with Berlin Institute of Technology and the Steinbeis University Berlin.
Buy-side M&A - Qualifying Your Seller & Finding ValueFirmex
Watch Full Webinar here: http://www.firmex.com/Qualifying-Your-Seller-Finding-Value-Sign-Up
How to avoid surprises and common mistakes, analyzing business issues in due diligence and how data rooms are playing a role in the due diligence process
The present book is a great step in forward direction of Indian Insurance sector ; and I have no doubt that after studying this book in detail and getting through the examination successfully, the insurance agent will gain substantially in accomplishing the tasks that are assigned to him or her. I would keenly look forward to its huge success in the Indian insurance domain in the days to come.
The article sought to review the contemporary challenges and their policy interventions in the Kenyan insurance industry in terms of the external and internal challenges affecting the insurance business and which require leadership and managerial actions. The researcher reviewed the contemporary challenges and the performance of insurance companies in Kenya by looking at the external business environmental challenges and how they affect the management of Insurance companies. Secondly, the study considered how Kenyan insurance companies adapt and adjust their internal practices and processes to satisfy the changing customer expectations. The article goes further to review the critical policy issues which are required to address: changing consumer dynamics, enforce strict compliance with the stringent regulations, constant product innovations, and greater need for communication, technological disruptions, on-demand marketplace, and compensation. Using peer-reviewed literature and the published integrated annual reports of Jubilee Insurance Company Ltd; the study discussed and highlighted the policy interventions in relation to the demands of business and customers. Using Jubilee Insurance as a model insurance company in a case study, the researcher found that by combining performance driven behaviour and regular use of management control systems, Insurance Companies were able to post improved results. The Choice of Jubilee was driven by its size and stability among the Kenyan insurance companies. Jubilee has adopted an integrated reporting system which enabled the researcher to obtain the empirical information required from a secondary source. The researcher reviewed the data from the company’s integrated annual reports for the ten years from 2007 to 2017. The study looked at the control systems, including informal and formal controls and subjected these controls to a more comprehensive analysis to establish the impact of management control systems and strategy on the insurance company performance. The study suggested further empirical research to find the linkage between the policy interventions to various challenges and the performance of the insurance companies in Kenya.
A CII-EY Report on the Insurance Industry titled ‘Building Growth, Building Value’ recommends chasing efficiency in distribution by finding greater synergy among the different channels. This will help in well-rounded industry growth and enable maximum value creation for all the stakeholders. The report also states that insurers must be careful in identifying the right ways to employ additional capital inflows that they may receive over the next few years with capital infusion from the foreign partners.
This presentation was delivered by Ms Damayanthi Fernando (Director Legal at Insurance Board of Sri Lanka) at the ICMIF-AOA Development Network Seminar (18-20 September 2013; Manila, The Philippines).
The insurance companies have to ensure quality products at a competitive price. Companies can
lower the price of the product by reducing the cost. Their survival depends upon their policy-holders. The
policy-holders become confident of not losing much when an accident or uncertainty takes place. On the
report of the insured about an accident the company officials send surveyors to assess the loss caused to
the policy-holders. However, as several of the insurance providers are international companies having
made their presence felt in several countries, the service provided by them is a reflection of the experience
gained by them across the globe, and in that sense, the findings may be generalised to a great extent.
The insurance companies have to ensure quality products at a competitive price. Companies can
lower the price of the product by reducing the cost. Their survival depends upon their policy-holders. The
policy-holders become confident of not losing much when an accident or uncertainty takes place. On the
report of the insured about an accident the company officials send surveyors to assess the loss caused to
the policy-holders. However, as several of the insurance providers are international companies having
made their presence felt in several countries, the service provided by them is a reflection of the experience
gained by them across the globe, and in that sense, the findings may be generalised to a great extent.
The study investigates the impact of risk management on performance of insurance companies. The research was done in Nairobi, in particular AIG insurance company where most of the respondent’s work. AIG have made investments in personnel, processes and technology to help control business risk. Historically, these risk investments have focused primarily on financial controls and regulatory compliance. The objectives of this study were aimed at knowing the impact of risk management on performance of insurance companies. Random sampling was used to select fifty one respondents. The research instruments majorly used included a set of questionnaires; for the respondents. The data collected has been presented using descriptive techniques and especially frequency distribution tables, pie charts and bar graphs. The findings of the study reveal that on operational risk management the underlying causes of operational risk losses are not always initially observable. It can be difficult to uncover the exact chain of events that led to the occurrence of the loss. In addition, one cause might be linked to more than one event or one event may have multiple causes (eg cascading control failures), resulting in different types of losses that could be covered by different insurance policies. On governance risk management through training and related activities aimed at building aimed at building awareness of the importance of ERM, roles and responsibilities and value to be derived from ERM. These results point to appropriate focus on risk governance since relevant, on time information risk and responsibilities. Reduced enterprise IT support / budgets and increased ease of technology deployments has led to multiple “shadow IT” organizations within enterprises. Shadow groups tend to not follow established control procedures. On strategic risk management, boards are seeing rapid increases both in the speed with which risk events take place and the contagion with which they spread across different categories of risk. They are especially concerned about the escalating impact of ‘catastrophic’ risks, which can threaten an organisation’s very existence and even undermine entire industries.
The current book provides and analyse the existing insurance market in India. It is a throughout study of Indian insurance with exact data archived from IRDA and Trustworthy Financial institute of India.
This book Provides the complete specification and integration required to reach the vision 2025 in prudent understanding.
everis 2016 InsurTech study - executive summaryDirk Croenen
everis comprehensive InsurTech study and the role of tech giants, insurance companies & startups. It's all about transforming client's experiences and implementing new disruptive business models, NOT about integrating new tech into existing organizations!
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
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what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
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The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Intellectual capital and innovation in agricultural insurance sector
1. Importance of Intellectual Capital and Innovation in
Agricultural Insurance Sector
Mohammad Rahmani Karchegani
International Conference on Economics, Energy, Environment and
Agricultural Sciences
1/11//2014
2. Section Content No.
of Slid
1
2
3
4
5
6
7
8
Overview
Importance of Insurance Services in Agricultural Sector
Importance of IC and Innovation in Insurance Sector
Definitions and Importance of Intellectual Capital
Definitions and Importance of Innovation
Relationship between Intellectual Capital and Innovation
Intellectual Capital and Innovation in Insurance Companies
Conclusion
4
5
9
10
11
14
22
26
Outline
3. 1.Overview
There are many factors that influence performance of insurance companies.
In order to sustain competitive advantage an insurance company needs to
offer high-quality services at low cost.
Scholars assert that intellectual capital (IC) is one of the crucial assets which
helps organizations to create value and enables organizations to be innovative.
Many authors found that IC can boost organizational performance through
knowledge, experiences, skills of employees and also by defining new methods
of task performance and being innovative in their processes.
4. 2. Importance of Insurance in Agricultural Sector
In many developing and developed countries, the agricultural sector is a critical
economic sector of livelihood (Mahul, 2011).
Normally, agricultural producers are often vulnerable to the effects of adverse natural
events, such as pest's attacks, various natural disasters, and unfavorable weather
conditions (drought, hail, flood, heat, storm, hot wind, sparrow attack). In fact, these
conditions have significant negative impacts of agricultural production.
Therefore, governments through agricultural insurance companies, provide assistance
to agricultural producers who successfully develop risk management and adaptation
strategies to survive these unfavorable events. Actually, these conditions have significant
negative impacts of agricultural production.
Utilization of insurance service in agricultural activities can psychologically,
economically, and socially improve the lives of farmers. Undoubtedly, farmers lacking
security cannot actively participate in programs for boosting production. Even
attractions of investments in agricultural production activities would face difficulties in
the absence of security (Rahmani Karchegani, 2002).
5. 2. Continued
-Although, in the some industrial countries, agricultural insurance services have been
offered for more than a century, this kind of insurance services remains under serviced
in middle- and low-income countries.
However, since the late 1990s, reduced government funding for agricultural
producers in emerging markets have heralded renewed interest in agricultural
insurance. A recent study conducted by the World Bank has revealed that various
agricultural insurance schemes are in place in more than 100 countries, either as well-developed
programs or pilots (Mahul and Stutley, 2010).
In a similar vein, and as part of an overall agricultural risk management framework,
the global financial network supports the development of agricultural insurance
schemes. In these schemes, middle- and low-income countries are also assisted with
institutional and capacity-building support needed to design and implement traditional
and innovative agricultural crops and livestock insurance products. The World Bank
also plays a role in forming agricultural insurance pools. In a generalist sense, these
projects are usually linked to supportive efforts in agricultural extension and financing
(Mahul and Stutley, 2010).
6. 2. Continued
Mahul (2011) argues that the potential role of agriculture insurance in emerging
economy is being revisited due to the notable expansion of agricultural risk modeling
techniques and the materialization of a number of insurance corporations and index-based
insurance. It was thus suggested that innovativeness to insurance of agricultural
products may lessen economic returns to farmers, herders, agricultural financing
institutions, and governments as the case of unfavorable natural events. This may be
particularly true for developing countries, which rely heavily on their agricultural
sectors.
However, Roberts (2013) posited that the management of insurance companies, as well
as business firms, has several developmental stages. These include market
identification; service's development; marketing; setting indemnity and premium
levels; collecting premiums; and handling claims. However, the extent of involvement of
the public sector varies from country to country. Roberts (2013), furthers that it always
has a role, even if this is exercised mainly through setting supportive and regulatory
policies. It may be particularly important in the early stages to developing of
agricultural insurance sector, and in situations where financial support is considered
both desirable and possible.
7. 2. Continued
Agricultural insurance is an area of insurance that is technically demanding. One of
the many challenges in the insurance industry are maintaining the skills and expertise
at the underwriter, loss adjuster, and reinsure levels, not only to provide adequate levels
of insurance, but also to assist the agriculture industry improve its risk-management
practices to enhance production.
In fact, in insurance companies, employees as human resources play an important
role in building competitive advantage to sustainable of the their firms. For instance,
the insured trend is constantly dynamic, changing as lifestyle changes. Once changes in
insurance patterns are identified, the onus lies on employees to develop new services
that match the expectation of consumers.
In such situations, knowledgeable employees rise to the occasion with creative and
innovative ideas to meet the desires of consumers. As a result, the introduction of
technical, customized insurance services in the market may see to a firm gaining
competitive advantage over its contemporaries and competitors. Agreeably, such
company tends to eventually occupy a greater market share in the insurance industry..
8. 3. IC and Innovation in Insurance Sector
Skandia a Swedish insurance company, was the first company that provided a complete report
on IC in insurance industry.
In Skandia’s annual report, IC has been defined as the possession of knowledge, applied
experiences, organizational technology, customer relationships and professional skills. This
insurance company divided IC into two components of human and structural capital. Human
capital is not a form of property that can be owned by an enterprise. Its value is attributed to
employee training, know-how, and competencies.
On the other hand, structural capital is broken down into customer capital and organizational
capital and remains in the possession of enterprise, even after employees have gone home at the
end of the day (Edvinsson, 1997). Based on Skandia’s experience, the scholars categorized IC
into three basic insights used in further implementation of IC term as follows:
The IC report of Skandia in 1997 was the first empirical analysis on the relationship between IC
and firm performance in insurance industry. This type of report provided a more systematic
description of the company’s ability and potential to transform IC into financial capital.
9. 4.Definition and Importance of Intellectual Capital
IC
Component
Table 1: Definition of IC Components
Definition
Human
Capital
-Is the knowledge, skills, experiences and abilities that employees take with them when they leave
their firm. Some of this knowledge is unique to individual, some may be generic. Examples are
innovation capacity, creativity, know-how and previous experience, teamwork capacity, employee
flexibility, tolerance for ambiguity motivation, satisfaction, learning capacity, loyalty, formal training
and education (Meritum, 2002).
Structural
Capital
-Is the knowledge that stays within the firm at the end of the working day. It comprises the
organizational routines, procedures, systems, cultures, databases, etc. Examples are organizational
flexibility, a documentation service, the existence of a knowledge centre, the general use of
Information Technologies, organizational learning capacity, etc. Some of them may be legally
protected and become Intellectual Property Rights, legally owned by the firm under separate title
(Meritum, 2002).
Relational
Capital
-Is all resources linked to the external relationships of the firm, with customer, suppliers or R&D and
partners. It comprises that part of Human and Structural Capital involved with the companies
relations with stakeholders investors, creditors, customers, suppliers, etc., plus the perceptions that
they hold about the company. Examples of this component are image, customers loyalty, customer
satisfaction, links with suppliers, commercial power, negotiating capacity with financial entities,
environmental activities (Meritum, 2002).
Spiritual
Capital
-Is tacit knowledge, faith, belief and emotion embedded in the minds and hearts of individuals
within organizational employees that to the overall impact on performance of the firms (Ismail,
2005b).
10. 5. Definition and Importance of Innovation
Innovation
Dimensions
Table 2: Definition of Innovation Dimensions
Definition
Process
Innovation
- Is the introduction of a new or significantly improved production.
Service
Innovation,
- Is the introduction of a goods or service that is new or substantially
improved.
Marketing
Innovation,
- Is the implementation of new marketing methods and introducing
significant changes in product design, packaging, product promotion and
pricing.
Organizational
Innovation
- Is the creation or alteration of business practices, workplace organization
and external relations.
Source: OECD (2010)
11. 5. Definition and Importance of Innovation
According to Edvinsson et al. (2004), the stage where “Knowledge” has been
known as assets already has interred to next stage, which is called
“Innovation” stage (Figure 1).
Nowadays, innovation has emerged as the newest generation of assets in
organizations, which recognized as vital driver of economic growth and
normally enables the organizations to offer better quality products and
services at lower prices as competitive advantage of firms (Edvinsson et al.,
2004) .
12. Figure 1: Six Generation Emerged of Asset (Edvinsson et al., 2004)
VI Future as the Asset
V Knowledge as the Asset
A
IV Customer as the Asset
III B Enterprise as the Asset
II Project as the Asset
I Product as the Asset
13. 6. Relationship between IC and Innovation
-Knowledge often defined in terms of IC is the source of new economic wealth.
Innovation is the process by which that wealth is converted into action, products, services, or
initiatives. Although activities can be based at the level of the group, function, enterprise, or nation,
ultimately real value is in what flows between the borders, creating collaborative advantage (Amidon,
2003b).
Roos et al. (1997), Edvinsson et al. (2004), and Zerenler et al. (2008), stated that the importance of
innovation and renewal in their IC framework.
Amidon (2003b), in her book “The Innovation Superhighway”, presented a revolutionary view of
innovation as nothing more than developing good ideas and implementing them to realize their value.
The author forwarded this vision to define the global imperatives contributing to a new world order
based on IC.
Based on the literature above, numerous studies have been reported on the relationship between
innovation and firm performance, and today, most innovation scholars seem to agree that innovation is
a powerful explanatory factor behind differences in performance among firms (Fagerberg et al., 2012).
Nevertheless, research on the relationship between innovation and firms’ financial performance has
traditionally focused primarily on innovations related to the development production and marketing
of goods, while the effects of innovations related to services have been given less attention (Aas and
Pedersen, 2011).
14. 6. Continued
The research literature argues that the firm-level effects of service innovation are different from
those of other types of innovation. For example, service innovation effects have a more qualitative
nature, and for this reason, are less tangible than the effects of other innovation efforts (Aas and
Pedersen, 2011).
For example, the scholars suggested that service innovation typically transforms the state of the
customers and results in customer satisfaction and loyalty, rather than short term financial
performance. It has also been argued that due to the nature of services (intangibility, heterogeneity),
the impact of service innovations is harder to trace than in manufacturing.
In this order, Brown (2009) focused upon the characteristics of IC that foster and develop innovation
in both manufacturing and service sectors. The study covered the presence of organizational and
individual HC and the availability of organizational networking systems (Table 3).
The results indicate that there are different impacts of IC on innovation in the contexts of
manufacturing and service sectors
15. Table 3: Matrix of IC Components and Innovation in Service Sectors
Driver of
Performance
IC
Component
Observed
Variables
Latent
Variables
Intellectual
Capital
Human
Capital
Knowledge that stays with employees,
Skills, Experience, Ability
- Cross functional
or team working
-Human Capital
Structural
Capital
Knowledge that stays with the firm
Routines, Processes, Culture, Datasets,
R&D
-Management
control of process
-Innovation process
Relational
Capital
Knowledge derived from networks
Resources linked to external
relationships customers, Suppliers,
Partners
-Extent of
networking
Innovation
Physical
Services
Tangible products and networks (e.g.
telecommunications and energy)
-Efficiency of
the innovation
process
-Effectiveness
(%revenue from
new products)
Human
Services
Social and individual wellbeing
(supported by technology)
Information
Services
Mass communications, Infomediaries,
(specialized knowledge providers)
Source: Brown (2009)
16. 6. Continued
Based on the results of Brown’s model (Figure 2) in the service sector, processes
(SC) have no impact on innovation efficiency despite the strong link with effective
revenue share. Team working (HC) has a strong direct relationship to innovation
efficiency and a weak relationship in the innovation process.
- Besides, HC is a key “individual” factor, which mediates innovation efficiency
through team work. While, direct influences of networking (RC) on performance
is negligible, networking does have a strong link to the innovation process in new
service development (Brown, 2009).
- Effective team work is associated with better organizational performance,
especially with creative and innovative ideas (Tidd et al., 2005). Arguably, two
different types of attitude can be linked to the different skills and knowledge types
17. Figure 2: Relationship between IC and Innovation in Service Sector (Brown, 2009)
Innovation Performance
Innovation
Efficiency
Relational Capital
Human Capital
Structural Capital
Team
Working
Management
Control
Innovation
Process Innovation
Effective
Human
Capital
Strong Link
Weak Link
Networking
18. 6. Continued
Consequently, firms need to think of organization in terms of a series of
collaborative networks, not just a pyramid-shaped organization chart. In other word,
companies need to take a fundamentally different approach to strategic management.
They also need to build in a way to leverage the knowledge of organization’s IC
such as human, structural relationship and SpC, to find new opportunities, explore
new courses and stimulate innovation for their businesses (Adams and Oleksak,
2010).
By realizing and understanding the importance of IC and innovation, companies
can improve their competitive advantage. It shows the importance of relationships
between IC components and innovation and the importance of investment and
management of these capitals in organizations.
Therefore, top managers of the firm should sustain, protect, develop and manage IC
to increase organizational innovation as a creator of competitive advantage for the
company.
19. 7. IC and Innovation in Insurance Companies
Ul-Rehman et al. (2011) stated that in insurance companies, knowledge is in
abundance. Insurance companies are known for being good in creating knowledge and
as knowledge-based acquisition. Although IC is extensively researched in large
organizations, it is yet to be explored in depth in insurance companies. Given the fact
that competitive advantage is becoming critical in knowledge-based economy, an
approach that uses KM and performance to effectively achieve this purpose is
increasingly popular.
More and more companies are trying to explore optimal methods of managing
knowledge-based assets, usually referred to IC as a propose to evaluating their
performance in this regard (Subramaniam and Youndt, 2005).
Customers of these firms, as well as insured, regulators, shareholders, and brokers
are eager to see insurers offer more and new services (or products) that extend
coverage to the economic activities, expand their efforts to improve disaster resilience
and are otherwise proactive about the climate-change threat (Mills, 2009).
20. 7. Continued
The first empirical analysis on the relationship between IC and firm performance,
was in the Skandia report compiled by a Sweden insurance company by Edvinson and
Maleon (1997).
Although their report developed IC term for the first time, but a review of the
available literature shows the lack of studies that mainly focus on the IC among
insurance companies. In the literature review process of this study, it was observed that
just few studies have been undertaken on the evaluation of IC and its comparison
within insurance companies although available studies (Edvinsson, 1997).
These previous studies confirmed that IC influences performance of the insurance
companies (Table 4). According to Amidon (2003b), Edvinsson (2004), and Kong (2010), based
on emerging economic conditions, more recent concerns about the concept of IC have
shifted to analyze what and how various innovative attributes influence firm
performance through IC components, such as human, structural, and relational capital.
21. Author/s
Year/
Country
Table 4: Previous Researches on IC in Insurance Industry
Title Findings
Skandia
(1996)
Sweden
-Visualizing IC in Skandia - IC is as hidden assets in the company
Iswati & Anshori
(2007)
Indonesia
-The Influence of Intellectual
Capital to Financial
Performance at Insurance
Companies in Jakarta Stock
Exchange
-IC rests on a potential link between IC on one
hand and corporate performance on the other
hand. Companies will grow up if a growing
number of physical capitals in the same line
with a growing number of IC.
Ak & Öztayşi
(2007)
Turkey
-Performance Measurement of
Insurance Companies By Using
Balance Scorecard and
Analytical Network Process
-Financial perspective is not enough to explain
an insurance company’s performance
Appuhami
(2007)
Thailand
-The Impact of Intellectual
Capital on Investors’ Capital
Gains on Shares: An Empirical
Investigation of Thai Banking,
Finance & Insurance Sector
-IC has a significant positive relationship with
its investors’ capital gains on shares. His
finding indicated enhance the knowledge base
of IC and develop a concept of IC in achieving
competitive advantages in emerging economies
such as Thailand’s.
(continued)
22. Author/s
Year/
Country
Table 4: continued
Title Findings
Pardede
(2010)
Indonesia
-An Investigate on Effect of
Intellectual Capital on Financial
Performance in the Insurance
Companies listed on the Jakarta
Stock Exchange
-IC influence on Financial Performance in the insurance
companies.
Ul-Rehman
(2011)
Pakistan
Intellectual capital performance
and its impact on financial returns
of companies: An empirical study
from insurance sector of Pakistan
-The results have shown that human capital efficiency
plays a significant role in IC performance of both life
and non life insurance sector. The firm having more
efficient people means having better performance of IC.
Where as a significant and positive relationship was
measured between value added creation and financial
performance.
Alipour
(2012)
Iran
-The effect of intellectual capital on
firm performance: an investigation
of Iran insurance companies
- The findings confirmed that value added intellectual
capital and its components have a significant positive
relationship with companies' profitability. Insurance
companies better to benchmark themselves according to
the IC efficiencies and develop strategies to enhance
their company's performance.
23. 7. Continued
An acknowledgement and a critical understanding of IC in insurance companies can
enhance their organizational innovation. This offers them the competitive advantage as
they achieve sustainable economic growth by focusing on IC (or intangible assets) unlike
the traditional approach of merely managing tangible assets.
This is so because IC and innovativeness are perceived and have known as sources of
competitive advantage for insurance companies. Therefore, this study has examined the
influence of IC not only on financial and/or non-financial of the firm performance, but
also on overall firm performance through mediating role of innovation.
On the other hand, Edvinsson et al. (2004), Roos et al. (2010), and Zerenler et al. (2008)
stressed the importance of innovation, renewal or development in their IC framework.
Further, according to resource-based view, determining the relationship between IC
and innovation activities among managers and employees can be one of the steps to
reveal the importance of HRM (Jinchveladze et al., 2009), strategic management (Marr and
Roos, 2005), knowledge management (Wiig, 1997), and accounting management
(Mouritsen et al., 2001) in enterprises.
24. 7. Continued
Zerenler et al. (2008) investigated the impact of IC on innovation and confirmed that three
components of IC, human, structural, and customer capital have a significant positive
relationship with performance of innovation.
Moreover, they noticed that among these IC components, RC (or customer capital) has
the greatest impact on innovation in Turkish automotive supplier industry.
By realizing and understanding the importance of IC and innovation, insurance
companies can improve their competitive advantage. It shows the potential importance of
relationship between IC and innovation, and the importance of investment and
management of this capital, specifically in the insurance industry.
Therefore, the top management within the firm should protect, develop and manage IC to
increase organizational innovation as a creator of competitive advantage to the company
(Amidon, 2003b).
25. 8. Conclusion
Firm performance is an obvious indicator of a firm’s success within insurance industry.
It is influenced by many factors such as diversity of insurance services, policies and
strategic planning, and human resource management practices, structure of
organizational resources and size of insurance companies.
Therefore, management of insurance companies should carefully monitor, measure,
report and manage firm performance based on quality of insurance services as their
nature of business (Houthoofd et al., 2010).
Karanja (2011) suggested that in order to improve the firm’s profit, it must be capable
of offering products and services with high quality at low cost in competitive
environment.
Many companies have responded to these competitive demands by implementing
advanced manufacturing technologies, innovative managerial practices, and emphasizing
quality, service delivery and being flexible to meet the stakeholder needs (Iazzolino et al.,
2013).
In this perspective, the structures of organizational resources have shifted from
material to intangible assets during the last two decades(Olalla, 1999; O'Regan,
2000;Moeller, 2009 ;Kaplan, 2010;Marr, 2005).
26. 8. Continued
Accordingly, many proponents assert that the “Product-based Economy” and “Retail
Economy” have been converted to the “Knowledge-based Economy” (Alcaniz et al., 2011;
Cambra-Fierro et al., 2011; Canibano et al., 2000; Fagerberg et al., 2012; Huang and Kung,
2011; Jalali et al., 2013; Nonaka et al., 1996).
The authors claimed that “Knowledge” and IC are two vital intangible assets that help
organizations create value and wealth in this “Knowledge-based Economy” (Augier and
Teece, 2005; Marr, 2005a) and recently, have stated that IC is more and more recognized
as a cause of firm performance, which stand for “value creation” potential of Human
Capital, Relational Capital and Structural Capital and their interactions (Abhayawansa
and Guthrie, 2014).
Thus, with knowledge critical to the network society, information technology and
innovation and creativity, IC has become a vital source of value creation for
organizations and economics situations.
Besides, IC is a highly discussed topic within the field of knowledge management.
Edvinsson and Sullivan (1996) stated that knowledge firms derive their profits from
innovation and knowledge-intensive services, and such firms are called high IC firms.
27. 8. Continued
Rosenbusch et al. (2011) believed that insurance companies same as software companies,
banking, and hotels, is an example of high IC firms. In comparison, low IC firms do not
invest highly in IC and do not apply knowledge properly, knowledge, structures and
relationships could not be used, in such firms as drivers to create value added (Sofian et
al., 2004).
In line with its importance, Usoff et al. (2002) suggested that firms with high IC are
more likely to use performance measures for the determination of a manager’s
compensation. Thus, insurance companies must develop services that capture IC and
change their traditional performance measurement system in order to achieve long-term
success.
In addition, IC scholars emphasized that IC is an important factors for knowledge
creation and innovation (Edvinsson et al., 2004). Knowledge and innovation have been
known as two drivers of competitive advantage for increasing organizational
performance (Aas and Pedersen, 2011; Amidon, 1997, 2003a; Andriessen, 2004; Bontis,
2002; Brown, 2009; Chan, 2009; Ismail, 2005; Kramer et al., 2011; Marr, 2005a; Tayles et al.,
2007). Human resource scholars also noted that IC leads to innovative creation, which in
turns plays a significant role in influencing firm performance (Santoso, 2012; Sharabati et
al., 2010; Spahić and Huruz, 2012; Wang and Wang, 2012; Wiig, 1997).
28. 8. Continued
Furthere, at the beginning of the third Millennium, innovation is not only the source
of competitive advantage, but will also play a significant role in the next wave of
influence which is known as “collaborative advantage” (Amidon, 2003b). Furtheremor,
Rose et al. (2009) noted that innovation has been recognized as an important driver of
economic growth, and it enables firms to offer new products and services with better-quality
at a lower price. Edvinsson (2004), Kramer (2011) and Vincent et al. (2005)
emphasized that being innovative is necessary for a firm to create a sustainable
competitive advantage in today’s turbulent environment.
Therefore, organizations which do not have any plans to discover and manage their
IC will face unwanted consequences (Augier and Teece, 2005) .
Based on the multidisciplinary literature review of IC, Alcaniz et al. (2011) and Marr
(2005b) concluded that IC concept has emerged from the work of various scholars
with different perspectives such as Economic, Strategic, Accounting, Finance,
Reporting, Marketing, Human Resources, Information System, and Legal. Thus, as IC
and innovation are two crucial and vital resources to increase firm performance
(Brown, 2009; Zschockelt, 2009), companies must disclose and manage them well.
29. 8. Continued
In light of the above discussion, this paper highlighted the IC components which
include Human Capital, Structural Capital, and Relational Capital, that foster four
dimensions of innovation include; Process Innovation, Service Innovation, Marketing
Innovation, and Organizational Innovation in insurance companies in order to improve
firm performance.
This is a pioneer paper focusing on the influence of innovation and IC on firm
performance among agricultural insurance sector.
30. The End of Presentation
Terima Kasih
Thank You Very Much
1.11.2014