Enzo Bivona () (University of Palermo – Faculty of Political Sciences c/o CED4 – System Dynamics Group – Italy)
Abstract
This paper examines alternative Intellectual Capital (IC) investment policies in a dynamically complex system in order to explain differences in firm performance. The analysis is supported through the use of a System Dynamics (SD) simulation model. This paper is based on the hypothesis that in order to explain superior performance, it is not sufficient to look at the endowment of strategic resources; it also requires an analysis of the dynamics of resource accumulation and depletion processes, which stem from management policies. To assess the impact of IC on company performance, a conceptual framework and an SD simulation model are developed. Finally, the results from alternative scenarios are presented.
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