Measurement of Intellectual Capital for Thai SMEs

Abstract

In the knowledge based economy, organizations are making every effort to accumulate their intellectual capital (IC) because their future prosperity tends to depend on IC instead of traditional physical assets. Therefore, they are willing to audit and measure IC and make it transparent to manage. Since intellectual capital is hard to measure using standard accounting practices a simple method of measurement is proposed. This paper applied concept of the multiple criteria decision-making (MCDM) approach to measure intellectual capital of Thai SMEs. Ten companies were investigated and measured at the strategic level because it is much easier for decision makes to make judgement, compare, and observe the impact of each IC component. The method of measurement is user friendly to facilitate self assessment. The results are used for improving IC and organizational performance in order to ensure for sustainable development.