The contribution of the management control system to the evaluation of intangible capital in innovative companies
A theoretical conceptual model
DOI:
https://doi.org/10.23882/rmd.23173Keywords:
intangible capital, Resources based view, dynamic capabilities, human capital, organizational capital , management control systemAbstract
With the rise of digitalization and artificial intelligence, intangible capital is recognized, through its components, as a primary source of performance within companies. Alongside the recognition of its importance in determining a company's value, we are witnessing the growing role of management control systems in the context of intangible capital (Novas et al., 2017). As a result, an effective and innovative corporate management control system facilitates the valuation of intangible capital and enhances its contributions (Mouritsen & Roslender, 2009; Tayles et al., 2007). It also effectively supports a company's knowledge capacity (Lee & Widener, 2016) and its quest for competitive advantage (Simons, 1995). The aim of this article is to present a theoretical conceptual model of the contribution of the management control system to the evaluation of intangible capital and its components in innovative companies (Start-ups). We have chosen innovative companies as our field of study because of the immateriality that characterizes this type of company and the close relationship between their values and their ability to assess their intangible capital. Accordingly, we have drawn on resource theory (Barney, 1991), dynamic capability theory (Teece et al., 2008) and the strategic approach to intangible capital management (Arrègle, 2006) as theoretical foundations for the literature. Our study presents a theoretical conceptual model that shows the role of the management control system in the evaluation of intangible capital and its components.
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