Measuring intellectual capital in the light of the EFQM Excellence Model: evidence from Hungary

Abstract

PurposeThe purpose of this paper is to ask how the EFQM Excellence Model and organizations' self‐assessment practice could contribute to the managerial and quantification efforts of intellectual capital (IC) and how indicators and measures applied during self‐assessment can be connected to well‐known intellectual capital measuring models such as Sveiby's Intangible Asset Monitor.Design/methodology/approachThe method applied highlights the potentials in the EFQM Excellence Model's criteria system to measure specific IC elements by studying the self‐assessment practice of 31 Hungarian National Quality Award (NQA) winners.FindingsThe EFQM Excellence Model is a suitable approach for characterizing the management and measurement of human, customer and structural capital within the organization.Research limitations/implicationsCorporations following regular self‐assessment practice have the ability to measure most of their intangibles, at least those which serve the traceability of strategic purposes and internal measuring objectives. IC measurement can be regarded as part of organizational excellence.Originality/valueThe criteria system of the EFQM Model makes synergic effects between single IC elements visible. Due to regular and systematic self‐assessments those IC elements are highlighted which support the execution of current strategic purposes. These fortify the contribution of IC management to strategy deployment.