Classification, measurement and the ontology of intellectual capital entities

Purpose The paper discusses the role of measurement and classification in intellectual capital research. Its purpose is to develop an alternative role for measure. The aim is to explore how measurement may be important even if it does not pretend to accurately represent and underlying reality. Design/methodology/approach The paper is an essay on the difficulties of measuring intellectual capital. It is a conceptual, analytical paper which proposes a new approach to analyzing the roles and effects of measurement in the area of intellectual capital. Findings The analysis suggests that measurement of intellectual capital is difficult because it is not possible to copy its properties in a number; yet it is necessary because it allows intervention to happen since it develops a wholly new set of dimensions to manage. This dual conclusion both problematic because the search for a definitive measure of the size, value and effects of intellectual capital is impossible, yet it is also comforting because measurement helps develop the actions that can be made in the name of intellectual capital. Research limitations/implications The central implication is that research should be explicit about the status of measurement in intellectual capital research since measurement does not primarily represent an underlying reality to be reported by intellectual capital. This directs attention to different purposes of measurement. Originality/value This paper explores alternative roles for measurement and suggests that it is necessary to study how measurement is input to management decision making more than a representation of an underlying reality.