A Framework for Human Capital Indicators in Knowledge-Based Industries: Evidence from Pharmaceutical Industry

Abstract

Purpose – During the last decade, intellectual capital (IC) has been widely considered as a critical tool to deliver successful business in an intensive knowledge environment. The main goal of this paper is therefore to develop and prioritize human capital indicators as an important component of IC in knowledge-based industries.

Design/methodology/approach – Based on an extensive literature review, a valid and reliable questionnaire was designed. In order to data gathering, it was sent out to 108 participants from academic and university who qualified well in pharmaceutical practice. Besides statistical analysis, we also used fuzzy TOPSIS technique as a MADM model in order to exact prioritization of indicators.

Findings – The analysis indicates that there is little difference between academic and university respondents. Furthermore, the fuzzy TOPSIS results show that participants remark high concerns especially about knowledge and skills of managers and employees.

Research limitations/implications – The findings offer valuable insights in order to evaluation of human capital state as a key component of IC in knowledge-based industry.

Practical implications – There is an immediate need that the policy makers and corporate managers wake up to the need and start to measure and disclosure the intangible assets of firms. Intellectual capital measurement is of primary interest for top executives of pharmaceutical firms in Iran as well.

Originality/value – This is an initial and pioneering study to develop a valid tool to evaluate IC in Iranian pharmaceutical industry. The present study provides a new aspect of performance measurement for research-based industries in emerging economies and would be a good topic for further research.

Keywords: Intangible assets, Human capital, Intellectual capital, Pharmaceuticals industry, knowledge-based industry