News Letter

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Ahmed Ali Mohammad 15
SBE, Vol.20, No.1, 2017
ISSN 1818-1228
©Copyright 2017/College of Business and Economics,
Qatar University
proposed framework. The value is generated
by innovation (discovery) and enhanced by
the unique organizational designs or human
resources practices. Prusak 2001 identified
three major nexuses of knowledge assets:
discovery, organizational practices, and human
resources. These assets are performing in
an integrated triangle for the value creation,
updating, and commercialization. The unique
discovery is acting as an engine of innovation
process and updated by investment in research
and development (Amidon, 2003). Moreover,
brands as a major form of knowledge assets
are often created by a unique combination of
the innovation and organizational structure.
Finally, human resources practices are
generally identified as a communicator to
guarantee continuity of value creation and
survive of knowledge assets (Holsapple,
2003). Considerable research projects have
been managed (individually and by bodies)
to develop alternative accounting models that
overcome the lacks of accounting against
knowledge management. The key feature of
those models is that none of these developed
models in the accounting literature has
Table I: Accounting against knowledge vs. Accounting for operations
Accounting Against Knowledge Accounting for Operations
Dynamic
Nature
ü Knowledge System.
ü Horizontal.
ü Financial and non-financial.
ü Relationships
ü Inter.
ü Integrated, cross-disciplinary, ad hoc,
fluid, and collaborative.
ü Success in expanding relationships.
üInformation System
üVertical
üFinancial
üVisible and physical activities.
üIntra.
üNone integrated, closed, restricted, and has
boundaries of single businesses.
ü Success in control.
Recognition
Rules
ü Invisible flow of knowledge.
ü Value Creation.
ü Flexible, collaborative, and dynamic.
ü Strategic.
ü Comprehensive.
ü Technical.
ü Centered on knowledge.
ü Physical flow of resources
ü Value Realization.
ü Rigid, isolated, and static.
ü Operational.
ü Financial.
ü Procedural.
ü Centered on data
Reporting
Power
ü Focused on technology process.
ü Supporting collaboration with business
partners.
ü Networking.
ü Extracted from e-business model.
ü Reporting value.
ü Focused on accounting process.
ü Supporting performance of recording
and reporting process.
ü Blocking
ü Extracted from t-business model.
ü Reporting cost.
Theoretical
Objectives
ü Creating and sharing knowledge
ü Value proposition matrix: balancing
performance, behavior, and
technology.
ü Reporting Dynamic: Instant and online.
ü Measuring profitability.
ü Value proposition matrix: cost, time, and
quality.
ü Reporting Dynamic: Periodical.