Knowledge valorisation is the transfer of knowledge from one party to another for economic benefit. The concept of valorisation is based on the underlying metaphor of KNOWLEDGE AS A THING. It is the same metaphor that makes it possible to talk about the value of knowledge. If knowledge is like a ‘thing’, then that ‘ thing’ must have a specific value. Value can be defined as the degree of usefulness or desirability of something, especially in comparison with other things, and is by definition subjective. Value is in the eye of the beholder. Any valuation method therefore needs to take into account this subjective nature by deliberately choosing the appropriate ‘standard of value’ (value to whom?) and ‘premise of value’ (value under what circumstances?). There are three ways to determine the value of something of which financial valuation is the most used. In turn financial valuation can be done using a cost approach, a market approach or an income approach. In most cases the income approach is the most appropriate. However, this approach requires a number of assumptions to be made; most of which are impossible to validate. The formulas that are used in the process can be intimidating to non-experts with the danger of disguising the inherent subjective and speculative nature of any valuation of knowledge as a ‘thing’.
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Valuation judgement bias has been a research topic for several years due to its proclaimed effect on valuation accuracy. However, little is known on the emphasis of literature on judgement bias, with regard to, for instance, research methodologies, research context and robustness of research evidence. A synthesis of available research will establish consistency in the current knowledge base on valuer judgement, identify future research opportunities and support decision-making policy by educational and regulatory stakeholders how to cope with judgement bias. This article therefore, provides a systematic review of empirical research on real estate valuer judgement over the last 30 years. Based on a number of inclusion and exclusion criteria, we have systematically analysed 32 relevant papers on valuation judgement bias. Although we find some consistency in evidence, we also find the underlying research to be biased; the methodology adopted is dominated by a quantitative approach; research context is skewed by timing and origination; and research evidence seems fragmented and needs replication. In order to obtain a deeper understanding of valuation judgement processes and thus extend the current knowledge base, we advocate more use of qualitative research methods and scholars to adopt an interpretative paradigm when studying judgement behaviour.
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Purpose – Information verification is an important factor in commercial valuation practice.Valuers use their professional autonomy to decide on the level of verification required, thereby creating an opportunity for client-related judgement bias in valuation. The purpose of this paper is to assess the manifestation of client attachment risks in information verification. Design/methodology/approach – A case-based questionnaire was used to retrieve data from 290 commercial valuation professionals in the Netherlands, providing a 15 per cent response rate of the Dutch commercial valuation population. Descriptive and inferential statistics have been used to test research hypotheses involving relations between information verification and professional features that may indicate client attachment such as an executive job level and brokerage experience. Findings – The results reveal that valuers acting at partner level within their organisation obtain lower scores on information verification compared to lower-ranked valuers. Also, brokerage experience correlates negatively to information verification of valuation professionals. Both findings have statistical significance. Research limitations/implications – The results reflect valuers’ reasoning behaviour rather than actual behaviour. Replication of findings through experimental design will contribute to research validity. Practical implications – Maintaining close client contact in a competitive environment is important for business continuity yet may foster client attachment.The associated downside risks in valuation practice call for higher awareness of (subconscious) client influence and the development of attitudinal scepticism in valuer training programmes. Originality/value – This paper is one of the few that explore possible sources of valuer judgement bias by relating client-friendly valuer features to a key area of valuation i.e. information verification.
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In this paper we investigate laypersons’ valuation of historic buildings, their experiences of thermal comfort in those buildings and contrast this with their views on the appropriateness of energy efficiency measures. This paper presents four case studies of medieval churches in Groningen, Netherlands. Valuation studies is used to investigate the values that are attached to historic buildings by various stakeholders. We apply the ‘heritage as a spatial vector’ approach, to position heritage in relation to developments in society and the landscape. Our theoretical contribution lies in the combination of heritage approaches and valuation studies. We conclude that for a more balanced assessment of historic buildings, laypersons’ valuations should be further integrated in heritage studies.
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This thesis provides an examination of judgement autonomy of Dutch commercial real estate valuers in relation to client orientation. The valuation of commercial real estate such as offices or retail properties requires in-depth analysis due to its uniqueness by location, building type and usage details. Essentially, a register-valuer is qualified and instructed to assess a property value to one’s best cognitive effort and inform others of this outcome by means of a valuation report. In the Netherlands, concerns over independence risks and client-related judgement risks of valuers have been raised by regulative authorities as the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). A significant part of these concerns followed the 2008 financial crisis, which appeared to be at least partially driven by unreliable and incomparable valuations of Dutch commercial real estate (AFM, 2014; DNB, 2012; 2015). Among other things, these concerns led to the instigation of the Nederlands Register Vastgoed Taxateurs (NRVT) in 2015. NRVT is a new Dutch central register of valuation practitioners set up in order to improve self-regulation, quality control and compliance of valuation practitioners. Currently, the chamber for commercial real estate valuation holds about 2,000 commercial valuation registrations (NRVT, 2020). The introduction of NRVT, and other measures taken, reflect an instrumental view towards enhancing professionalism of Dutch valuers. This view is based on a systematic orientation to professional conduct in which good practice is primarily objectively determined (Van Ewijk, 2019). However, Wassink and Bakker (2016) point out that individuals make personal choices in order to deal with work complexity. Insight into and reflection on individual choices is part of what is referred to as normative aspects of professionalisation: what norms prevail in individual judgement and decision-making and why (Van Ewijk, 2019). In this regard, insight into judgement reasoning of valuation practitioners may contribute to normative levels of professional development of valuers. The need for such is expressed through community concerns over how individual judgement autonomy may become subdued due to instrumental-driven developments taking place in the sector. The combination of authoritative concerns over professional quality in the Netherlands and lack of (scientific) insight on how client influence affects judgement in valuation practice poses a problem: How may practitioners address client-related judgement bias risks and improve valuation accuracy from this viewpoint, if little is known on how such risks may occur in daily practice? The seemingly scarce scientific insights available in this regard in the Netherlands may also prevent educational programs to adequately address valuer independence and objectivity risks in relevant training programs. In order to address this knowledge gap, the present PhD research examines the following research problem: 169 Summary “How does client orientation affect professional judgement autonomy of commercial real estate valuers in the Netherlands?” The term ‘client orientation’ should be broadly interpreted and may refer to valuers’ perception, understanding and meaning given to alleged, actual or anticipated client-related aspects. Information on such client aspects is not required for the performance of valuation instructions. It should also be noted that this research examines the context of how client orientation may affect valuer judgement reasoning patterns during work practice, yet not its effect in terms of decision on final value opinion.
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Our ageing population is the result of two demographic trends: decreasing fertility levels and higher life expectancy. As a corollary to these demographic trends, the working population is ageing and shrinking at the same time. This development will affect the performance of organizations in the next decades. As today‟s economy and the performance of organizations is mainly based on knowledge, the ageing workforce will mainly affect the organizations ability to be knowledge productive. As current knowledge management (KM) and intellectual capital (IC) literature hardly addresses the issue of ageing, the aim of this paper is to explore this topic in order to formulate an agenda for further KM/IC research. Combining the temporary consequences of ageing (brain drain and talent gap) and the false assumptions about the capabilities of older workers (older workers contribute negatively to a firm‟s performance), the current ageing of the working population reveals two main risks for organizations and management: underutilization of older employees, and loss of knowledge. Based on the exploration of these two risks in this paper, several issues are proposed for further research. These issues focus on the specific competences of the older knowledge worker, the implications for talent development programs, the benefits of inter-generational learning, and effectiveness of knowledge retention strategies. Today, the main fear is that large scale retirement will lead to a shortage of skills, talents, knowledge. Although acknowlegding the risks and threats of this brain drain, the current temporary ageing of our workforce might also contribute to a structural better valuation of the potential of the older knowledge worker and its specific contribution to the process of knowledge creation. In an ageing knowledge economy, increased understanding about the abilities and distinct qualities of older workers will provide opportunities for organizations to enhance knowledge productivity and thus gain competitiveness.
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Biodiversity, including entire habitats and ecosystems, is recognized to be of great social and economic value. Conserving biodiversity has therefore become a task of international NGO’s as well as grass-roots organisations. The ‘classical’ model of conservation has been characterised by creation of designated nature areas to allow biodiversity to recover from the effects of human activities. Typically, such areas prohibit entry other than through commercial ecotourism or necessary monitoring activities, but also often involve commodification nature. This classical conservation model has been criticized for limiting valuation of nature to its commercial worth and for being insensitive to local communities. Simultaneously, ‘new conservation’ approaches have emerged. Propagating openness of conservation approaches, ‘new conservation’ has counteracted the calls for strict measures of biodiversity protection as the only means of protecting biodiversity. In turn, the ’new conservation’ was criticised for being inadequate in protecting those species that are not instrumental for human welfare. The aim of this article is to inquire whether sustainable future for non-humans can be achieved based on commodification of nature and/or upon open approaches to conservation. It is argued that while economic development does not necessarily lead to greater environmental protection, strict regulation combined with economic interests can be effective. Thus, economic approaches by mainstream conservation institutions cannot be easily dismissed. However, ‘new conservation’ can also be useful in opening up alternatives, such as care-based and spiritual approaches to valuation of nature. Complementary to market-based approaches to conservation, alternative ontologies of the human development as empathic beings embedded in intimate ethical relations with non-humans are proposed. https://www.linkedin.com/in/helenkopnina/
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Cultural heritage buildings and sites are threatened by the effects of climate change, especially in coastal zones. Risks not only include floods and submersion, but also less visible risks such as effects of moisture levels or, alternatively, drought. At the same time, it is important to involve people in the care of heritage buildings and sites, to stimulate them to cherish, admire, and to enrich their lives with the heritage locations, buildings and stories.This paper aims to contribute to our knowledge on the application of valuation approaches. The topic of heritage and sustainability calls for an approach that encompasses a broad range of values. Theoretically, this paper relies on the approach of ‘Design for Values’. This approach starts with the identification of the values that are aspired to in a design project. These values are connected to norms, which describe how the identified value can be reached. On a more technical or concrete level, requirements are noted down, which specify the precise conditions a design must fulfill. In this way, a ‘value hierarchy’ can be outlined, which forms a guide for the designing process. In a value hierarchy, the levels are connected in two ways: downward by ‘specification’, and upwards, by the phrase ‘for the sake of’. After the design is finalized, a verification step is needed to ascertain if the aspired values indeed have been achieved in the design.The empirical case study for this paper is provided by the investigations of the Wisloujcsie Fortress and surrounding area at the SOS-workshop in Gdansk in October 2022. In our investigation of the site several problems and challenges came to light, which we summarized in a SWOT-analysis. For sustainable development of the area and the conservation of cultural and natural heritage we identified values connected to heritage, water, public access, and social values, see figure 1. In the paper, we will further elaborate on the norms and requirements that follow from each of these values. Also, we want to reflect on a preliminary verification step. We conclude that to produce designs that successfully achieve the climate and sustainability goals of the SOS-Climate Waterfront project, a ‘model valuation framework’ could be a useful guide for the design process. The first elements of such a framework are presented in our paper. Applying such a valuation framework stimulates ethical reflection during the design process and evaluation of the result. It thereby strengthens the connections between sustainability goals and urban design.
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Sustaining historical buildings does not always align with the ambition to promote sustainability in the built environment. In this paper we explore the dynamics and strategies that spring from this basic tension, by investigating the differences and similarities between expert’s valuation and peoples’ valuation of historical buildings, as well as their views on energy efficiency. Our paper highlights mediaeval churches in Groningen, which represent an important European heritage. We cooperate closely with the SOGK, a regional organization that is taking up the challenge of maintaining these churches in a region that is depopulating, secularizing and, to all that, suffering from earthquakes.
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Purpose This paper describes the result of an empirical study into the critical success factors for implementing an intellectual capital valuation method, the KPMG Value Explorer®. Methodology/Approach For this study the design approach was used as research methodology. Findings The research shows the strengths and weaknesses of the method and identifies four general critical success factors for the implementation of intellectual capital valuation and measurement tools.
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