Valuing Intellectual Capital:Need of the Era (An Exploratory Study of Valuation of Intellectual Capital in Service Sector Companies in India)

This paper is an empirical study that explores the need to carry intellectual capital measurement and related impact on business performance in the Indian context. The success of a service sector organization is linked to the leader’s, human capital, knowledge, skills of employees, innovation and creativity, know-how, copyright, patents, production processes, information technology, as well as customer relations of the organization. This study is an interaction with 36 industry leaders from Indian service sector companies to explore the awareness, actual scenario regarding measurement of intellectual capital apropos business performance. Through this empirical study and interviews of 36 top executives reiterate the importance of measurement of intellectual capital and its influence on company valuation and business performance in dynamic business environment. The results of this study should help both academics and the industry to understand the importance of intellectual capital measurement. Thus, valuation of intellectual capital is need of current era.