Intangible Assets

It has just been pinpointed in the first paragraph of the last section that BR1 did not know how to categorise human resources. However, he attached

tremendous significance to the quality of human resources and suggested a section devoted to discussing in-depth issues related to it. His views can be reinforced by the evidence from the study of Amit and Shoemaker (1993, p. 35) that “…capabilities are based on developing, carrying, and exchanging

information through the firm’s human capital.”

“I assert that human resources are simply what it is, and there is no point in defining it as tangible or intangible asset…We can avoid the controversy and make an independent section for human resources.” (Appendix p. -57-)

BR1 used to recruit the wrong people and assign them to unsuitable positions, and he had learned his lessons. He realised the importance of getting

high quality human resources, especially those who are self-motivated and willing to learn, and have high self-esteem and expectations of themselves. That explained why BR1 spared no effort when establishing an editing department with a group of highly professional translators.

“In the past, it was the sales department that was responsible for customer development, acceptance of orders, project management, and project assignment, but this was not professional. Translation profession should be done by professionals, and that is why we set up the editing

department…The team is led by a professor of the Graduate Institute of Translation and Interpretation of National Taiwan Normal University, and its team members were professionally trained and have had years of experience within the industry.” (Appendix p.59)

Recruiting high quality human resources does not only apply to the internal employees, but also to the firm’s suppliers, mainly freelance translators.

“In terms of selection of translators, we have higher criteria than other translation agencies…Some translators who wanted to work with us and performed sample translation might only have made two translation

mistakes, but found themselves disqualified to be our freelance translators.”

(Appendix p. -58-)

With an aim to find the human resources of the best quality, BR1 has dedicated a great deal of time, effort, and thought to building networks with famous universities such as National Taiwan Normal University in Taiwan and

Shanghai International Studies University in China. Other efforts include turning his company into a platform offering students placements. Those students on placement might stay in Firm B, and even if they do not, they will bring in the latest industry intelligence or introduce more talented people or new customers to the company, and thus, the connections and networks continue to expand.

“This is like running a club. My idea is that now there are a dozen of editors in the editing department, but if the company is in need of 30 or 50 people, I already have 100 or 200 talented people standing by in the talent pool…The practical experience they earned here will be helpful to them. Whenever I need them, they are at my request. This is the ideal condition for me. All I have to do is include as many members as possible regardless of how many people the company needs. It is not a problem for me...Such networks give me much flexibility.” (Appendix p. -65-)

In addition to high quality human resources and social and personal

networks, the translation memory databases unique to Firm B are of exponential importance. It is asserted that Firm B’s competitors can purchase translation technology such as Trados and establish their databases, but the data they accumulated will not be same as those at Firm B.

“The essence of computer aided translation tools lies in their

databases…Why do we use translation memory, terminology, or files saved in it when we translate? The answer is the databases behind CAT which enhance quality, consistency, and the speed of learning greatly.” (Appendix p. -69-)

The answers he gave when asked to identify intangible assets are reputation, management concept, people-come-first policy, and employee cohesion. The latter three are categorised as Firm B’s capabilities in this research and will be explored in subsection 4.4.1.3. As for reputation, word of mouth marketing works effectively in Taiwan because of Taiwan’s T&I market. Chan (2005) stated that it is difficult for clients or buyers in the translation service industry to

evaluate skills and performance before the services take place. Therefore, a knowledge-intensive firm like Firm B, as Skaggs and Snow (2004) highlighted, can build an image or status that signals their underlying professionalism.

According to BR1, the good reputation drew in a large crowd of customers and assured customers of the quality of the services.

“Now we have expanded to China, and our employees in China sometimes come to me and say, with a thrill, that as soon as some international

company knows that the mother company of the branch is Firm B, the client is confident in subcontracting the translation assignment to the

branch…This happens twice or so a year. (Appendix p. -62-)”

Nonetheless, now that Firm B runs two branches in China, BR1 stressed that reputation alone was not sufficient to lead the branches to succeed there. As a result, in addition to the existing reputation, BR1 is planning to formulate marketing strategies and to carry out marketing campaigns to boost its exposure to the larger market across the Strait.

4.4.1.3 Capabilities

Firm B, like Firm A, also valued quality and professionalism. BR1 was clear in his message that the competitive advantage he created for his company stemmed from his efforts into and determination of the pursuit of high quality.

“The better quality of our translation services than our rivals explains how we got to the position we are today.” (Appendix p. -58-)

The other attitudinal capabilities of Firm B are professionalism and

organisational culture. As mentioned earlier, knowledge-intensive firms can use signalling to achieve a market image. Prior to conveying the message of quality service provider through its image and reputation, Firm B should attain

considerable expertise in translating. The highly trained professionals in the editing department are the employees at Firm B performing core activities. Their job is to proofread and edit the translated work done by freelance translators, manage them, find out the specialised area of freelancers, and provide them with education related to translating skills. Thanks to them, the quality of Firm B’s translation products is enhanced and the establishment of robust databases with well-organised data can finally start to take shape.

With regard to the organisational culture, the one that has been nurtured at Firm B is derived from the goals of BR1. Everyone in the company knows the range of his professional obligations, and they have the autonomy to decide how to go about it. Even though the company does have a fast turnover, it does not affect Firm B’s performance. The freedom to leave and return to the company

gives its employees more opportunities to get inspiration and new knowledge from past experience at other companies or their studies. When they come back, they become more loyal to the company. This underlying culture explicates many HRM policies and the industrial relations of the firm.

“Our company allows freedom of space, time, and work. There are not many rules and regulations. Everyone is clear of his own work objectives and how much contribution s/he should make at work. Nobody nags you about what you wear or do. Employees have much space to develop their potential and skills. We have a harmonious working environment at the company.”

(Appendix p. -67-)

The management/operational capabilities in Firm B play a crucial role in achieving firm success. It has an exclusive management system that covers customer relationship management, manufacturing resource planning, project management, and accounts receivable management. These types of management not only assists BR1in operating his company more efficiently and effectively, but also in catering to its client’s needs.

“We can assign translation assignments of various fields to the most suitable translators. When clients come to us, we adopt the project management approach in order to complete the projects. We will examine the resources and operation procedures required. For example, they might need subsequent services such as printing, voice-dubbing, subtitle adding, or the formatting of the final products. We also provide clients with

procurement management, communication management, quality

management, time management, cost management, etc.” (Appendix p. -59-)

Additionally, there is human resource management since BR1 has

repeatedly stated that human resources were important in his company and the knowledge-based economy. In terms of the employees, Firm B offers its

employees better compensation than other translation vendors, creates a cozy and happy working environment, and motivates employees with cash incentives.

Interestingly, BR1 said that due to resource constraints, he had to allocate resources to employees with the expertise needed in the company.

“For employees with special knowledge or expertise, I tailor-make HRM policies for them. I will go to them one by one. For other company

employees, I provide them with a free and respectful workplace and better salary.” (Appendix p. -67-)

This so-called free and respectful workplace means that employees are entitled to express their opinions. BR1 adopts different methods to elicit what his employees really think. To achieve this, he established Firm B into a democratic and flat organisation where employees feel free to share their ideas and feelings, and hence develop a high level of employee cohesion.

“You need to really know what they are thinking. The policies and work procedures and standards will be effective only if you implement them after thorough communication with employees.” (Appendix p. -68-)