Value creation under intellectual entrepreneurship

Abstract

The paper analyses the importance of intangible assets, especially intellectual capital (IC), to a contemporary firm. Referencing to the literature, the article reveals the company of Lithuanian market which can be truly called as intellectual entrepreneurship and therefore provides evidence of increased value creation ability of this company. The study showed that the companies which exercise increased intangible assets and intellectual capital performance are engaged in obtaining superior corporate performance variables. The supporting correlation analysis espouses the hypothesis that companies having higher IC can benefit from improved value creation. As a consequence, adequate management of intellectual capital helps to obtain the unique core competence which contributes heavily to enrichment of company’s financial position and therefore can be applied as a successful tool for long-term value creation. The valuation approaches proposed in the paper can be easily implemented by enterprises.