Researching On The Basic Theory Of Corporate Knowledge Capital

Intelligence factors such as knowledge play an important role in improving the production efficiency and increasing corporate profit with economic development. So the new economic times are called knowledge economic times. In the context of knowledge economic, the traditional factors such as human, money, material can neither meet the emerging economic phenomena’s requirements, nor evaluate the motive of corporate profitability. Therefore emerging elements such as knowledge should be production factors, because it meets economic development’s requirements. So knowledge has been researched by academic circles from different aspects. Also, there has been a climax about the research of knowledge capital in our country. When foreign scholars began to research intelligence factors, our research about intellectual capital rose with foreign research. So the understanding and researching of knowledge capital is on the basis of intellectual capital. This has two implications, one is that the research of knowledge capital contain too much unnecessary matters, the other is that the concept of knowledge capital isn’t been explained clearer. So it provides the path and direction of the basic theory research of knowledge capital. Knowledge capital should be one of the corporate element capitals because of the important effect on the contribution to economic development and the influence to the corporate value. But our corporate neither perform financial management from element capitals including knowledge capital nor pay attention to knowledge capital. This paper tries to understand knowledge capital from the point of element capitals and analyze knowledge capital’s mechanism of action in corporate. We want to improve the basis theory of knowledge through our research and provide a new direction about corporate finance question. The purpose of this paper is to confirm the existence and value of corporate knowledge capital and promote the development of corporate financial research from knowledge capital and element capitals.This paper mainly uses the normative research and combines qualitative analysis and quantitative analysis; also it uses case analysis and data analysis. The research about the basis theory of knowledge capital process through three steps including what, why and how. We present the research questions through the discussion of research background. We present the research direction through the summary of pertinent literature. We present the theoretical basis through the discussion of the basis theory of knowledge capital. We discuss the nature of corporate knowledge capital after understanding the research questions, research direction and theoretical basis to solve the problem about what. We present the mode of action about corporate knowledge capital through the interdisciplinary study to solve the problem about why. We present the evaluation method of corporate knowledge capital through understanding the nature of knowledge capital and the discussion of the mechanism of action about corporate knowledge capital to solve the problem about how. We make conclusions and present the outlook about the paper at last. This paper has two parts academic meanings, one it has theoretical significance, the other it has practical significance. First this paper improves the theory of element capitals, ascertains the connotation of knowledge capital and reveals the mechanism of action of knowledge capital and presents a new model of evaluating corporate knowledge capital. In a world, this paper discusses the basis theory of knowledge capital completely and has originality. Secondly this paper presents a new idea through confirming the existence and the importance of corporate knowledge capital to business management and financial operation. Corporate can use the new evaluation method of corporate knowledge capital to evaluate the knowledge capital and use the theory of element capitals and knowledge capital to allocate knowledge capital.This paper adopts standardization analysis to deduce from introduction to conclusion and discusses the basis theory of corporate knowledge capital. From the research background, we think there is necessary and urgency to research the knowledge capital because the nature of element capitals and the difference of corporate value and the current situation of corporate. Under the conditions of knowledge-based economy, the research of knowledge capital should begin from knowledge economic and the element capitals. There is a reality requires to make sure knowledge as one of production factors from the history development of production factors and knowledge-based economics. Also it requires our research should follow the path of production elements and element capitals. But we find that there are some mistakes in understanding knowledge capital and intellectual capital because the knowledge capital researches in our country develop on the basis of foreign research of intellectual capital. We think that knowledge capital is different form intellectual through discussing the difference between foreign knowledge capital research and foreign intellectual capital. Knowledge as one of production elements has theoretical foundation on economy. According to endogenous growth theory, the production elements such as technology, knowledge have the internal factors in the economic system. Therefore, intellective elements have the contribution to economic growth. But it can’t explain the knowledge elements such as system commendably. We also describe the theory of corporate core competence from the reason of performance discrepancy and present the viewpoint that knowledge can play a role in explanation of performance discrepancy. Because there are some defects in traditional economic research, we try to explore new research approach and tool from evolutionary economic. We find that there should be a new path to study knowledge capital from evolution of system if we use the theory of dissipative structure. Corporate is a dissipative structure and the corporate financial operation also is a dissipative structure because it has the nature of far from equilibrium state, nonlinearity, open quantum system and fluctuation. So we can use this theory to present a new idea about capital allocation and to analyze the mechanism of action.The core contents of this paper are chapter four, chapter five and chapter six, they try to solve the problems through what, why and how. In the chapter four, we explain that what the knowledge capital is by discussing the market significance of knowledge, the generation of knowledge capital, the nature of knowledge capital and mode of operation of knowledge capital to lay a foundation for next research. Knowledge capital has market significance, so knowledge is difference from other intangible assets and has the mature of commodity. Knowledge has use value and value and the value realize form direct exchange and indirect exchange. The corporate knowledge from external source and internal sources can transform to corporate knowledge capital by capitalization. So, we think that knowledge capital should be one of corporate element capitals and be one part of corporate financial systems. Knowledge capital has tow nature including natural quality and social attribute. The natural quality includes the strong public character, the weaker commercialization and unique value character. The social attribute explain the property right of knowledge capital. Knowledge capital is different technology capital and human capital because of its unique nature. Chapter five analyzes the mechanism of action of knowledge capital on the basis of chapter four. First we analyze Nokia to think corporate element capitals and corporate knowledge capital. There are five parts of corporate element capitals including human capital, monetary capital, material capital, technology capital and knowledge capital. We can explain the operational process and value creating process of corporate if we use the theory of element capitals and interdisciplinary research method. Through the formula of entropy production and model of competitive commodities, we think that the corporate element capitals have dual feature. The traditional elements including human, monetary and material bring the energy to corporate and the new elements including technology and knowledge bring the negentropy to corporate. Corporate need the energy and the negentropy to operate and develop. Knowledge capital brings the negentropy to corporate and reduces the positive entropy in the corporate and induces the corporate to jump. Chapter six tries to solve the problem of how to apply knowledge capital. After reviewing and analyzing the measurement methods of intellectual capital, we find that all of the methods can’t meet our requirement. So we need to present a new evaluation model according to the mechanism of action of knowledge capital in corporate operation. At last, we select iron and steel industry and communication equipment manufacturing industry to test the evaluation model and analyze these enterprises.There are three conclusions in this paper:(1) Knowledge capital as one of corporate element capitals has independence and objective existence, because knowledge in the market has the condition to transform to knowledge capital. Knowledge capital has unique nature and different from intellectual capital, it with human capital, monetary capital, material capital and technology capital constitute corporate element capital. (2) Corporate knowledge is the result of production and management and investment, which has goods attribute. Knowledge could transact in the market and has the condition to be knowledge capital. After the process of production, property right and transaction, knowledge transform to knowledge capital. Knowledge capital has unique character, for example, strong commonweal, weak commercialization, scarcity and double incremental. (3) Enterprise system operating meets the character of dissipative structure. We can explain the corporate operating better and explain the mechanism of action of knowledge capital fundamentally if we use interdisciplinary research method. (4) The new evaluation method is on the basis of understanding knowledge capital to present and can be conductive to allocate element capitals, especially to pay attention to knowledge capital. This paper has some innovation on the concept of knowledge capital and the mechanism of action of knowledge capital and new metering method of evaluate knowledge capital.There are some innovations in this paper. (1)The concept of knowledge capital is novel. Knowledge capital follows the change of production factors. It is different from intellectual capital and technology capital. The knowledge capital is the mins knowledge in corporate and it is used for applying the resource of corporate and guiding the operation of corporate. (2) Using the theory of dissipative structure and entropy to study the corporate knowledge. There are two parts of corporate production factors, one is traditional production factors and the other is new production factors. Traditional productiona factors bring the energe to the corporate and new production factors bring the entropy to the corporate. The tow parts interplay to realizing the corporate value. Knowledge capital brings the entropy to the corporate. (3)There is a new method of evaluating the corporate knowledge capital. If we use this method, we can evaluate the corporate knowledge capital in the same industry and evaluate the new production factors. There will be some suggestion about the knowledge configuration by the results of measurement. In a word, this paper’s purpose is to preliminary discussion on corporate knowledge capital.