Ultimately, every industry worked effortlessly to use intellectual capital in attaining organizational innovative performance. Human capital is weak or where the state offers few social services. Introduction the global market is progressively moving towards knowledge and technological innovation, seeking methods to boost competitive advantage. The impact of intellectual capital on organizational. Intellectual capital, social capital and communities of practice john pierce c eng, fics this, the third of a series of articles on managing knowledge, visits the concepts of intellectual and social capital and looks at communities of practice, with a real example. Social capital, intellectual capital, and the organizational advantage 1998. Investigating the impact of social capital on knowledge. Although, for a long time it has been recognized that economic wealth comes from knowledge assets, i. The construct of organizational commitment has received. Managers perception on the role of integrators that generate and develop intellectual capital is similar to the employees perception. Social capital, intellectual capital, and the organizational advantage.
The impact of intellectual capital, social capital and. Developing a comprehensive understanding of how transformational leadership effectiveness could be affected by key organizational factors will require understanding social capital theory. Besides, the dimensions of intellectual capital human capital. Social capital, intellectual capital social capital.
Influence of intellectual capital in the organizational. Instead of being derived from tradition or loyalty, the new trust is built upon values of competence and integrity. Human capital the most important capital is human, stated bontis in his point of view 2002. Analysis of influence organizational culture toward. Scholars of the theory of the firm have begun to emphasize the sources and conditions of what has been described as the organizational advantage, rather than focus on the causes and consequences of market failure. Intellectual capital and organizational organic structure. Moreover, intellectual capital has been comprised of human capital, customer capital, and structural capital. Social capital, intellectual capital, and the organizational advantage janine nahapiet templeton college, university of oxford sumantra ghoshal london business school scholars of the theory of the firm have begun to emphasize the sources and conditions of what has been described as the organizational advantage, rather than focus on. Although organizations have avoided the area of intellectual capital for many years15, scholars have come to emphasize the apparent importance of measuring and managing intellectual capital 16. Intellectual capital has a positive effect on competitive advantage. While social capital proponents are arguing for its inclusion in formulations of intellectual capital mcelroy, 2002.
How cultural capital can help you become a more effective leader. At the same time, edvinsson says the main distinction is between human capital and structural capital, which can then be. Intellectual capital, corporate reputation, corporate. The relation between intellectual capital and knowledge society can be seen as a relation between the past and the future graph 1, namely between the outcomes and the present and the ability to generate such outcomes in the future, too. In the matrix organizational structure most of the workers have dual line of reporting as they are responsible to report the team leader and chief of the organization for their work activities osullivan, 2009. A survey of the relationship between social capital and intellectual capital of the organization case study of the employees and lecturers of azad university of kermanshah of iran. Organizational investment in social capital oisc and. It is the sum of everything everybody in a company knows that gives it a competitive edge. Ghoshal this article considers the value of social capital in providing an organizational advantage, which is rooted in the idea of the significance of relationships as a. Intellectual capital the commitment and competence of workers is embedded in how each employee thinks about and does work and in how an organization creates policies and systems to get work done. The results indicated that there is statistically significant effect for intellectual capital on competitive advantage.
It can be seen that the organizational culture and intellectual capital is an. The impact of intellectual capital on firm performance is still poorly defined. Intellectual capital, social capital, psychological capital and competitive advantage. Organizational investment in social capital social capital is the predictable combined or economic benefits resulting from the better. Social capital, intellectual capital, and the organization. The study of social capital, organizational learning. Consequently, the impact of intellectual capital on organizational performance is high, allowing the validation of the assumed association in 201 luminita maria gogan et al. Capital refers to the internal systems, patents, organisational structures and human capital as the skills, competencies and education of the firms staff.
The multinational matrix organizational structure and intellectual capital are the two related concepts that have an ideal relationship. First, intellectual capital is a firms only appreciable asset. The source of this advantage, we argue, lies in their ability to develop dense social capital which facilitates the. The second hypothesis refers to managers and employees perception. Intellectual capital is the intangible value of a business, covering its people human capital, the value relating to its relationships relational capital, and everything that is left when the employees go home structural capital, of which intellectual property ip is but one component. Main components of intellectual capital and competitive advantage. White paper communities of practice, social capital and. A proposed management response framework for competitive advantage based on knowledge growth. Value creation is the essence of effective firm strategies as well as the primary source of their advantage over market institutions moran and ghoshal, 1996. The role of social capital in enhancing competitive advantage.
Additionally, the relationship between social capital and intellectual capital is explored, as is the impact of this relationship upon a firms perceived organizational advantage. The social capital is derived from the organizations values, goals, and principles that. Confirmatory factor analysis and structural equation modelling. The output of effective management of the intellectual capital of the organization is the increase of innovation activities through the creation of new products or services with higher added value for the customer by increasing. Social capital and organizational commitment pdf social capital and organizational commitment. Social capital intellectual capital and the organizational advantage janine nahapiet templeton college. In this paper, we try to find the relationship between intellectual capital and business performance from the standpoint of financial performance, the marketplace and economics. Intellectual capital can be located in its people, its structures and its customers stewart, 1997. Broking describes intellectual capital as a combination of all the intangible. Nahapiet and ghoshal 1998 determine three dimensions for social capital, and categorize them as. Almost by definition, tightly knit communities, such as some immigrant groups, have strong.
Introduction in todays competitive global market, value creating factors for companies are changing. Social capital, intellectual capital, and the organizational advantage janine nahapiet templeton college, university of oxford sumantra ghoshal london business school scholars of the theory of the firm have begun to emphasize the sources and conditions of what has been described as the organizational advantage. Nonfinancial reports and accounts routledge advances in organizational learning and knowledge management. Social capital, intellectual capital, and the organizational advantage janine nahapiet. Intellectual capital, corporate reputation, corporate culture and performance of firms listed at the nairobi securities exchange anne wangui kariuki a phd thesis submitted in partial fulfillment of the requirements for the award of degree of the doctor of philosophy in business administration, school of business, university of nairobi 2014. Typically, researchers see such organizational advantage as accruing from the particular capabilities organizations have for creating and sharing knowledge.
The impacts of intellectual capital, innovation and. In addition, our findings show that pc explains percent of competitive advantage. The essence of intellectual capital is the value creation that can be understood as a complex of intangible property, knowledge, skills, processes, applied experience and technologies used in organizations to ensure a competitive advantage on the market. Th is defi nition focuses on the relationship between intellectual capital and organizational learning.
On the other hand, social capital is a new concept playing much more important role compared to physical and personal capital in organizations and society prusak and cohen, 2001. Introduction in the past years, ic and its measurement was a subject of the researches only in developed. Intellectual capital, competitive advantage, human capital, organizational capital, relational capital, knowledge based economy. The influence of intellectual capital on knowledge sharing. Social capital and competitive advantage the consumers competitive advantage has received a significant attention over the last few years.
Intellectual capital the concept of intellectual capital was first used in 1969 by john. Silvi and cuganesan 2006 refer to eustaces statement saying, a fundamental shift in the. A survey of the relationship between social capital and. Managing the intellectual capital of the firm has become one of the main tasks on the. Intellectual capital is defined as the organizational resources which comprise human capital, structural capital and relational capital bontis, 1998. This work was supported in part by atma jaya catholic university of indonesia. This trust will be tempered by hierarchical rules to ensure stability. The intellectual capital that developed in the past according to an organizational architecture based on.
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