Prioritization and selection of intellectual capital measurement indicators using analytic hierarchy process for the mobile telecommunications industry

摘要

Intellectual capital (IC) has prevailed as a measure of core competency and competitive advantage which explains the gap between the market value and book value of an organization at a time of decreasing usefulness of current financial reporting. In spite of the importance of IC management (ICM), few applicable ICM methodologies have been addressed. There has been no basis model for IC statements, nor bottom-line indicators of the value of IC. The selection of effective IC indicators is a major task of the companies that are preparing IC reports. This paper has proposed a decision model based on the analysis of the conceptual framework of the qualitative characteristics of financial information and an examination of information quality of the information system. The application of the analytic hierarchy process makes it possible to extract weights for setting the priority among criteria in the mobile telecommunications industry. During the last decade, this industry has experienced a dramatic growth in its intellectual value, and the value of IC seems to have had a major impact on the value of the mobile telecommunications companies. Based on specified criteria and weighting, this paper presents the results of a case study illustrating the results of selected indicators from candidate indicators in the mobile telecommunications company.