Efficiency Based on Smart Company Performances: BOD Analytics in Urban Agenda Context

Abstract

Modern conditions characterized by the fourth industrial revolution emphasized the crucial role of intangible assets in the success of companies. Tangible and intangible assets of companies within cities make a significant part of the development of competitive knowledge-based cities. However, development trends in recent decades have shifted the focus from tangible assets to intangible assets such as knowledge, innovation and intellectual property. In modern conditions, intangible assets are becoming an important strategic resource necessary for the improvement of the competitive advantage of companies within any industry. There is evidence of the influence of intangible assets on improving company performance and creating corporate value. The development of the knowledge-based economy has additionally encouraged companies to efficiently use soft capital such as human capital and knowledge since economic development in modern conditions is driven by soft capital. Therefore, the aim of this paper is to evaluate the efficiency of intangible asset management within the high-tech industry companies of ten European cities (Amsterdam, Barcelona, Berlin, Brussels, Dublin, Lisbon, London, Oslo, Paris and Zurich). The sample consists of data for 2775 high-tech companies within stated cities related to the number of patents, the number of trademarks, annual fixed asset growth rate, annual intangible asset growth rate, share of intangible asset in total asset, annual current asset growth rate and current ratio for the last year available in the Amadeus database. Efficiency evaluation was performed by creating a composite index using the Benefit of Doubt approach. The results of the efficiency analysis indicate that a large part of the companies in the sample achieves relatively low levels of efficiency. Differences in average efficiency between companies in the analysed cities were assessed using one-way ANOVA. The results indicate that the average efficiency of high-tech companies operating in Dublin is significantly better than the average efficiency of high-tech companies in other analysed European cities. In addition, high-tech companies operating in Berlin are, on average, more efficient than high-tech companies operating in Paris and London. There are no statistically significant differences between the average efficiencies of high-tech companies in other analysed European cities.