Intellectual capital: an exploratory study that develops measures and models (original) (raw)
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Intellectual Capital in Knowledge Management Organizations
This paper templet is copyright by Global Conference on Business and Social Science organized by Global Academy of Training & Research (GATR) Enterprise. Intellectual capital and knowledge are the most important assets of most organizations to ensure that determined or intended strategies can be implemented. The resource-based view of the firm considers the firm as a bundle of tangible resources, intangible resources, and organisational capabilities. An effective IC refers to the critical issues of organisational adaptation, survival and competence in the face of discontinuous environmental change. KM is essential for retaining employees' knowledge within a firm by using appropriate technology and tools to capture and store the knowledge residing in the minds of its employees, so it can be easily shared and reused. There is a growing realisation of the importance of the development and understanding of theory for both Intellectual Capital and Knowledge Management in relation to guide the successful development of Knowledge Management Organisations. This study is fundamental because it will provide the whole picture about the different levels of knowledge; individual, group and organizational, which express internal knowledge (formal and informal knowledge) and external knowledge such as customers and suppliers. The aim of this study is addressed some of the gaps in Intellectual Capital literature. It is necessary to investigate the interactions between IC components in Knowledge management organizations, which include human capital (HC), Organizational capital (OC), and Relational capital (RC). This is important in order to discover the extent to which these factors work together to achieve a network's knowledge management in organization.
THe need to manage knowledge in the organisation
Although much has been written on knowledge management (KM), the learning organisation and intellectual capital (IC), little, if any has been written about the relationship and correlation between KM and intellectual capital management. The challenge seems to be to provide integrated guidelines on how organisations can use both KM and IC for the formulating of a comprehensive intellectual capital management approach (CICM). The exceptional growth of information in the knowledge economy focuses attention on the importance of managing knowledge in organisations. These organisations are referred to as the so-called learning organisations. These are organisations that recognise the value of knowledge within the organisations Although there is a general consensus that the knowledge society and the knowledge economy has arrived, and that knowledge is a key business asset, organisations are still in the early stages of understanding the implications of knowledge management and intellectual capital. The rise of the “new economy” that is principally driven by information and knowledge, can be attributed to the increased prominence of intellectual capital (IC) in organisations. Intellectual capital features prominently in recent economic, managerial, technological and sociological developments in a manner previously unknown and largely unforseen. Although there are many similarities between KM and intellectual capital (IC), these concepts are not the same. KM relates to the creation of value, the gathering of ideas, the measuring of employee brainpower, and the conversion of taught knowledge into explicit knowledge that the organisation can codify and transfer. IC relates to the maximization of value. This achieved through the licensing of knowhow, patents, trademarks, and the use of intellectual capital to gain a competitive advantage. Further uses are to enter new markets, establish strategic alliances, and generate revenue. The proponents of the KM and IC approaches identify the benefits of each of these management approaches, but fail to see the connection or the interaction between KM and IC. It is possible in some industries that one approach may seem more important than the other. Nonetheless, for any organisation to succeed in the knowledge economy, it is essential to adopt both KM and IC approaches to some extent, as each deals with complementary strategic needs. What some organisations fail to see is that KM and IC are essential components for the total management of an organisation’s intellectual asset management. The question can now be asked: What can be done to ensure a successful relationship and effective correlation between knowledge management and intellectual capital in the organisation? This question will be answered with this paper.
Intellectual capital has increasingly become one of important key driver of competitive advantages in the organization. It has been recognized as a framework to analyze the value contribution of intangible assets in an organization. At the same time, to ensure the competitiveness of organizations, knowledge management is also very crucial as a fundamental activity. This may help the organization to derive their best business value from their existing knowledge assets and attempt to establish competitive advantages asset where that is necessary. Based on Karl M. (1997) to stay competitive and successful, experience shows that organizations must create and sustain a balanced intellectual capital portfolio. This paper discusses about the role of intellectual capital in managing the knowledge in the organization. It discusses the concept of knowledge management and intellectual capital in order to assist the readers to understand about the topic. The authors also attempt to describe how the components of intellectual capital that consisted of four components which are human capital, structural capital, customer capital and competitor capital are linked to manage the organization assets.
Impact of Intelectual Capital on the Value of the Organization
2020
Intellectual capital is considered as one of the vital and most crucial strategic assets for success and sustainability of organizations in the competitive business environment. In today’s fast changing society, knowledge has become one of the most meaningful resources. In accordance with this, the traditional factors of production have not disappeared, but have become secondary. It is much more difficult to see and count ideas and expertise, than to count money or products.Nowadays, in strategic perspective for the companies, knowledge and intellectual capital are used to create and enhance organizational value, and the success of an organization depends on its ability to manage these scarce resources. Therefore, the knowledge of individuals has inevitably become as important as other financial and physical assets of the organizations. This paper examines the relationship between intellectual capital and knowledge management and their roles in creating organizational value.The firs...
Relationship between Intellectual Capital and Knowledge Management: An Empirical Investigation
Decision Sciences, 2012
There are many factors that influence firm performance. In order to sustain competitive advantage and increase performance, a firm needs to offer high-quality products at low cost. Many firms have responded to these competitive demands by being innovative in their practices and have shown enough flexibility to meet the expectations of their stakeholders. Economists assert that intellectual capital (IC) is a vital asset that helps organizations to create value in present economic syndrome and enables the organizations to be innovative. IC can boost the organizational performance through knowledge, experiences, skills of employees and also by defining new methods of task performance and being innovative in their processes. Thus, IC of a company indicates the value of ideas and capability of being innovative for a longer period. Many authors have examined the relationship between IC and firm performance. Their finding indicates the existence of positive and significant relationship and this inspires the idea to review the literature on the relationship between innovation and intellectual capital, the topic of this paper.
Effect of knowledge management on intellectual capital
International journal of social sciences and humanities
In the dynamic and competitive banking industry, knowledge management plays a vital role in enhancing intellectual capital, which is considered a valuable intangible asset for organizations. The purpose of this paper is to examine the effect of knowledge management (KM) on intellectual capital (IC). The study aims to provide a comprehensive understanding of how knowledge management initiatives affect the development, utilization, and enhancement of intellectual capital. The research method used is a quantitative approach, using data collection techniques with survey methods by distributing questionnaires. Data were garnered with questionnaires from 96 employees. To achieve this objective, a quantitative analysis was conducted using the Statistical Package for the Social Sciences (SPSS) as the analytical tool. Moreover, the regression analysis demonstrated that knowledge management practices significantly predict intellectual capital in Commercial Risk Group, Bank Mandiri. The study ...