ROI3: the building blocks for successful global organizations in the twenty-first century

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ROI3: the building blocks for successful global organizations in the twenty-first century

R.F. Lusch, M. Harvey and C. Speier in European Management Journal (UK), Dec. 1998 Vol. 16 No. 6:p. 714 (15 pages)

Contends that traditional accounting measures fail to take into account its intellectual capital and other intangible assets yet it is precisely an organization's intellectual capital that will determine its success in the twenty-first century. Sets out a framework for generating, encouraging and assessing the intellectual capital of an organization's workforce. Extends the financial ratio of return on investment to include return on ideas and return on information, demonstrating how this can be measured and used to obtain a sustained competitive advantage, ending with a list of some of the reasons why there is resistance to building up resources in ideas andinformation.

Subject(s): Return on investment, Accounting systems, Innovation

Style: Theoretical with application in practice

Reference: 28AE308 (5 credits)