An IC-based Conceptual Framework for Developing Organizational Decision Making Capability (original) (raw)
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Knowledge Management Research & Practice, 2013
In the postindustrial era, the success of a corporation lies more in its intellectual and systems capabilities than in its physical assets. The capacity to manage human intellect-and to convert it into useful products and services-is fast becoming the critical executive skill of the age. As a result, there has been a flurry of interest in intellectual capital, creativity, innovation, and the learning organization, but surprisingly little attention has been given to managing professional intellect. This oversight is especially surprising because professional intellect creates most of the value in the new economy. Its benefits are immediately visible in the large service industries, such as software, health care, financial services, communications, and consulting. But in manufacturing industries as well, professionals generate the preponderance of value-through activities like research and development, process design, product design, logistics, marketing, or systems management. Despite the growing importance of professional intellect, few managers have systematic answers to even these basic questions: What is professional intellect? How can we develop it? How can we leverage it? WHAT IS PROFESSIONAL INTELLECT? The true professional commands a body of knowledge-a discipline that must be updated constantly. The professional intellect of an organization operates on four levels, presented here in order of increasing importance: Reprinted by permission of Hurvard Business Review From "Managing Professional Intellect: Making the Most of the Best" by James Brian Quinn, et al, March-April 1996, pp. 71-80. Copyright 0 1996 by the President and Fellows of Harvard College, all rights reserved. 87 88 THE STRATEGIC MANAGEMENT OF INTELLECTUAL CAPITAL Cognitive knowledge (or know-what) is the basic mastery of a discipline that professionals achieve through extensive training and certification. This knowledge is essential, but usually far from sufficient, for commercial success. Advanced skills (know-how) translate book learning" into effective execution. The ability to apply the rules of a discipline to complex real-world problems is the most widespread value-creating professional skill level. Systems understanding (know-why) is deep knowledge of the web of causeand-effect relationships underlying a discipline. It permits professionals to move beyond the execution of tasks to solve larger and more complex problems-and to create extraordinary value. Professionals with know-why can anticipate subtle interactions and unintended consequences. The ultimate expression of systems understanding is highly trained intuition-for example, the insight of a seasoned research director who knows instinctively which projects to fund and exactly when to do so. Self-motivated creative (care-why) consists of will, motivation, and adaptability for success. Highly motivated and creative groups often outperform groups with greater physical or financial resources. Without self-motivated creativity, intellectual leaders can lose their knowledge advantage through complacency. They may fail to adapt aggressively to changing external conditions and particularly to innovations that obsolesce their earlier skills-just as the techniques of molecular design are superseding chemical screening in pharmaceuticals today. That is why the highest level of intellect is now so vital. Organizations that nurture care-why in their people can simultaneously thrive in the face of today's rapid changes and renew their cognitive knowledge, advanced skills, and systems understanding in order to compete in the next wave of advances.
Challenges Of The Intellectual Capital From A Management Perspective
2017
The extensive framework which shows connections between intellectual capital and other concepts such as management of human resources, knowledge management, learning organizations, strategic management, places intellectual capital at the heart of the new management thinking that reflects on how organisational problems are foreseen and solved at present. In this new approach, the management of an organisation is no longer about managing the return from capital, but it is about recognising and making use of the organisational, structural resources and the knowledge of the staff. While IC marked the transition from the traditional approach in which financial capital was key to gaining wealth to an approach in which knowledge stood out as the main resource of an organisation, be it public, private or education-oriented, the interest in identification and reporting of IC has grown as several models were developed to help orient management decisions. Building on the early work of several ...
Intellectual capital: The strategic resource of organizations
2017
Journal title: "Zeszyty Naukowe Małopolskiej Wyższej Szkoły Ekonomicznej w Tarnowie" ISSN 1506-2635 Abstract: The increasing investment in intangibles and the growth of markets of goods and services based on knowledge shows that these assets that comprise the intellectual capital are the key to strategic management of organizations in the knowledge economy. In increasingly competitive markets, where it is mandatory to innovate constantly, the value of products and services seems to depend more and more on the percentage of technology, knowledge and intelligence embedded in them. Given this reality, intellectual capital should be considered a strategic resource and the ability to manage it, a key factor for success. This study intends to address this issue reflectively, showing the importance of intellectual capital and its strategic management as a way of developing sustainable competitive advantage for organizations. Key words: intellectual capital, knowledge management, ...
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...
International Journal of Computer Applications
Knowledge management provides a budding class to decision making that itself rest on the bench of intellectual capital. However, the present study attempts to extract the relationship between intellectual capital and decision making in egovernance systems in Indian public sector. The study identified the moderating effect of knowledge management process on the relationship between intellectual capital and decision making. However, it showed that all what is required is an ideal combination of human, structural or relational capital with that of the various stages of knowledge management process for an effective decision-making. Consequently, the findings of the present study have practical contributions to the government organizations that may serve as a reference for government organization in the implementation of effective KM system for the decisionmaking in their work culture.
This article proposes a framework designed to support the top management in the tactical and strategic planning of the investments on critical ICAs. The framework consists of a sequence of steps, which aim at assessing the organisational intellectual capital. The framework takes into consideration the impact of intellectual capital assets on the value creation process. The framework resorts to the analytic network process in order to synthesise the interdependences among intellectual capital assets and identify the individual impact of each intellectual capital asset. The implementation of the proposed framework provides managers with strategic considerations, which can be drawn from the results and compared through a synoptic analysis and through a cost/benefit analysis.
The rapid growth of knowledge economy in the last two decades has changed management styles. Organization's knowledge strategy should be driven from business strategy to ensure development of knowledge culture. Such a culture ensures knowledge activities, namely acquiring, sharing, creating, transforming and its utilization. The knowledge environment will encourage and promote innovative processes. The feedback from external environment and experience from previous projects will help in research and development. The amalgamation of new and known knowledge will help devise ways and means of transformation for effective and efficient performance. A conceptual model is developed to study the moderating role of intellectual capital competencies in knowledge strategy-organizational performance relationship. The research study's how intellectual capital competencies moderate the knowledge strategy-organizational performance relationship. The novelty of this research is studying relationship of Knowledge Strategy-Organizational performance through moderating role of process innovation, research and development integration of past projects and market intelligence. It will educate and create awareness in managers for nurturing organizational intellectual capital and managing their daily affairs effectively. It will guide in devising better strategies, processes and methods to manage intellectual capital. This will help create value through innovations and improved performance.
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.
International Journal of Economic Practice and Policy
Given that the concept of Intellectual capital (IC) came from business practice, it can be said that it is a practice in search of a theory. Studying the theoretical contribution of this concept is challenging as it demands the systematization of all relevant theories in which it finds its foundation and all aspects of its research. The crucial issues addressed in the concept of IC are: Has the economy based on knowledge influenced the emergence of a new matrix of value creation, and, if so, how is it possible to identify the essential resources which have the most influence on the process of value creation? To answer these questions, the concept of IC develops both the theoretical basis and practical guidelines and tools that contribute to a more precise definition of the strategic assets of the firm and their role in the process of value creation. For the concept of intellectual capital, the articulation of the value creation process is the essential precondition for firms' su...