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Abstract(s)
In the last decade the world economy has undergone numerous transformations that have changed
the way we evaluate the assets of organizations, cities and countries. In this context, Intellectual Capital (IC) and
Knowledge Management (KM), based on the management of intangible assets, became a factor of
differentiation and competitiveness. The way countries are dealing with IC and knowledge management is a
decisive factor in their international reputation, which in turn acts as country branding.
Country branding is the image of a nation-state and from the link between this image and the success of its
economy, corresponding to its competitiveness, its richness, the efficiency of the state and the quality of life of
its citizens, among others.
Reputable countries usually attract more investment and, consequently, are more innovative. While some
decision makers argue that economic development should focus on investment and the creation of jobs, many
studies have shown that this growth should be underpinned by the proper management of IC in all its
dimensions.
Assuming that is proved a cause-effect relationship between IC management and innovation - the most
innovative countries are those with a better IC management and vice versa - the purpose of this study is to
search for empirical evidence of a possible relationship between these indicators and the reputation of the
countries.
If it is possible to identify a connection between the variables that compose each index, we can design patterns
that can guide the management of international branding strategy of each country. This paper uses multivariate
data analyses techniques, including biplots methodology, in its attempt to study the case of Portugal versus
Romania. These countries have different indicators, but both have problems in reputation management. In
terms of originality, this empirical study aims to create discussions about the factors that determine the
reputation of these countries.
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Keywords
intellectual capital,innovation,competitiveness,reputation,branding